DraftKings has agreed to pay back $3 million in refunds to Connecticut consumers. The settlement comes following an investigation into the company’s marketing of match deposit promotions.
Key Takeaways
- DraftKings has been under investigation for unclear match deposit bonus promotions.
- The company has now settled with the DCP and agreed to refund customers.
- Affected customers will receive details of their refund within 60 days.
The Department of Consumer Protection had been looking into the gaming giant following allegations that its bonus offers violated Connecticut gaming laws.
The offers, which were available between October 19, 2021, and January 4, 2023, promised deposit matches or deposit match bonuses, but failed to state the attached wagering requirements clearly.
DCP Gaming Division Director Kris Gilman explained: "Gaming operators must clearly communicate the terms of any promotion to their customers, including requirements to wager a certain amount or other conditions to obtain a promised award.”
The agreed settlement will be split between approximately 7,000 players, all of whom took up the promotions during the period in question.
"We are pleased with the outcome of this investigation and that affected consumers will be made whole,” said DCP Commissioner Bryan T. Cafferelli. “Thank you to our Gaming Division team, who work tirelessly on behalf of Connecticut consumers to ensure fairness and safety in our legal gaming marketplace.”
DraftKings to fund enhanced staff training, consumer education and protection
In addition to the $3 million refund, the Connecticut sports betting provider has agreed to fund an annual training program for marketing and advertising staff based in the state. All relevant team members will now receive enhanced training on Connecticut’s gaming laws to ensure future offers and promotions adhere to the strict regulations.
DraftKings will also enhance the promotion of its education hub and game tutorials for bonus promotions. As part of the settlement, the company is to pay $50,000 toward consumer complaint resolution programs, consumer education, consumer protection enforcement and litigation.
“We are happy that DraftKings has agreed to assess its promotions, provide additional training to its employees regarding Connecticut’s laws and regulations, and return funds to consumers who misunderstood and in many cases were completely unaware of the terms of the promotions they participated in," said DCP Gaming Division Director Kris Gilman said.
DCP warns players to remain vigilant as they await refunds
DraftKings has stated that all affected customers should receive details of their refund within 60 days. The DCP’s Gaming Division has warned players to remain vigilant, as criminals may attempt to impersonate DraftKings to obtain personal information. If in doubt, players are advised to contact the DCP directly at DCP.Gaming@ct.gov.
