DraftKings Faces Lawsuit Over Failure To Pay Winning Bets

Man claims he is owed more than $2 million for bets on a 2024 golf tournament, which ended early due to inclement weather.

An Iowa man has filed a lawsuit against the sports betting site DraftKings, saying the company refused to pay out multiple bets he won on a golf tournament that was held last year.

The complaint (PDF) was brought by Nicholas Bavas in Iowa District Court for Polk County on April 18, accusing the company of reneging on five different bets he made over the results of the 2024 AT&T Pebble Beach Pro-Am. A Notice of Removal (PDF) issued on May 23 transferred the case to the U.S. District Court for the Southern District of Iowa.

While DraftKings is only permitted to operate in states that have legalized online sports betting, it has rapidly grown to become the dominant player in the U.S. market. The platform, known for its aggressive promotional strategies, has drawn millions of users since federal restrictions on sports gambling were lifted in 2018.

However, its rise has been accompanied by a growing number of gambling addiction lawsuits, alleging that DraftKings targets vulnerable users and exploits individuals showing clear signs of compulsive behavior. The company also now faces at least one lawsuit alleging it failed to honor winning bets.

According to Bavas’ lawsuit against DraftKings, he placed five different bets on the Pebble Beach golf tournament, before it ended early due to inclement weather.

The lawsuit argues that even though the tournament was cut short due to weather, winners were officially declared—and those results matched Bavas’ bets, yet DraftKings declined to honor the payouts. It also alleges that the company continued to accept wagers on the event despite being aware of the potential for weather-related disruptions.

“DraftKings is the drafter of these rules and bettors have no opportunity to negotiate these rules with DraftKings. These rules can and do lead bettors to sometimes place bets erroneously, or without full comprehension of the rules. Unforeseen events can also occur in any athletic contest, resulting in changes to the odds that bettors may not have anticipated when they placed their bets,” the lawsuit states. “However, when DraftKings makes an error or accepts a bet it should not have, or when unforeseen events occur that require an unanticipated large pay out by DraftKings, then it seems different rules apply.”

Bavas claims DraftKings owes him more than $2.3 million for his winning bets. He presents claims of breach of contract, breach of implied covenant of good faith and fair dealing, and violations of Iowa betting laws.

Gambling Addiction Lawsuits

Bavas’ claim is different from most of the lawsuits DraftKings currently faces, which largely center on allegations that the platform is intentionally designed to foster gambling addiction and target college age males.

These lawsuits point to aggressive marketing tactics, misleading “risk-free” promotions, and app features specifically designed to encourage high-frequency betting. In states where online gambling is legal, plaintiffs argue that companies like DraftKings have prioritized profits over consumer protection, using real-time data to identify and retain users that have shown signs of compulsive behavior.

College students and young adults are particularly vulnerable, as many are still learning how to manage finances and assess risk. Rather than offering support or safeguards, these platforms allegedly target inexperienced users with personalized promotions, loyalty perks and psychological triggers that normalize betting while masking its financial consequences.

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 30, who developed gambling addictions and lost $10,000 or more after using sports betting apps like DraftKings, FanDuel, BetMGM and Caesars. 

These claims focus on users who were encouraged to place high-frequency bets, even after showing signs of addiction. Some continued to receive personalized incentives and marketing offers after requesting account closures or appearing on self-exclusion lists, raising serious concerns about how platforms exploit vulnerable behavior.

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.