DraftKings Class Action Lawsuit Over $1,000 Bonus Bet Promo Dismissed by Federal Judge

Ruling comes amid claims that DraftKings encourages gambling addiction through allegedly aggressive and deceptive marketing practices.

A federal judge has dismissed a DraftKings class action lawsuit over deceptive marketing, ruling that the sports betting platform’s $1,000 bonus bet offer was not misleading and that the terms clearly explained the conditions required to qualify.

In September 2024, Nerye Aminov filed a complaint against DraftKings, Inc. in New York state court, which was later removed to the U.S. District Court for the Eastern District of New York. His lawsuit sought class action certification to pursue damages for all New York consumers who attempted to redeem the “$1,000 bonus bet” promotion from DraftKings, which he claimed the company failed to honor.

The case is part of a growing wave of sports betting lawsuits targeting DraftKings, FanDuel and other gambling platforms, accusing them of misleading advertising, violating state consumer protection laws, and using aggressive marketing tactics aimed at young adults.

Most of the lawsuits involve claims that the platforms fostered gambling addictions, with designs that are intended to maximize user engagement and spending. DraftKings and other platforms have faced criticism for targeting young adults with addictive features and promotions designed to exploit psychological vulnerabilities, causing many college age users and young adults to suffer devastating sports gambling losses.

DraftKings, now the dominant player in the online sports betting market, has drawn millions of users since federal restrictions were lifted on sportsbook operations in 2018, largely through high-profile promotions like the “$1,000 bonus bet” that promise big rewards upfront and often appeal to inexperienced or impulsive gamblers.

One of those users, Nerye Aminov, opened an account in 2023 and deposited $500, expecting to receive the full $1,000 in bonus bets. Instead, he was awarded only $100, according to the lawsuit.

However, according to a memorandum and order (PDF) issued on July 28, the terms of the promotion were clearly spelled out in the “Promotional Terms” text, which appeared when new members were signing up, indicating that DraftKings’ promotion was a 20% bonus bet, up to $1,000, meaning Aminov would have had to pay $5,000 to get the full $1,000 bonus bet amount.

In the order, U.S. District Judge Margo K. Brodie indicated that the promotional terms were displayed further down on the same screen “in their entirety, in a similar font size” to the rest of the text, which should have allowed any consumer a chance to view it prior to depositing money in their account.

While the court sided with DraftKings in this particular case, the ruling does not address the growing concerns over how sports betting platforms operate, and who they target.

DraftKings Compulsive Gambling Lawsuits

Most claims against DraftKings and similar websites have focused on broader concerns about marketing and the use of algorithms designed to detect and encourage patterns of addictive gambling.

Instead of implementing safeguards, or supporting those at risk, the platforms allegedly target vulnerable users with personalized promotions, loyalty rewards and psychological tactics that normalize betting while hiding its financial risks, efforts made more troubling by the industry’s aggressive lobbying against sports betting safeguards.

Amid the growing evidence linking sports betting platforms to rising rates of addiction and financial harm, lawyers are now reviewing sports betting addiction lawsuits for individuals between the ages of 18 and 25, who developed gambling addictions and lost $10,000 or more after using sports betting apps like DraftKings, FanDuel, BetMGM and Caesars. 

If you or someone you love suffered financial harm from compulsive gambling on these apps, a lawsuit may help recover losses and hold companies accountable for their addictive design and predatory targeting practices.