In Connecticut, DraftKings has consented to resolve a complaint filed with the Department of Consumer Protection (DCP) about claims that its marketing language breached the state's advertising laws, which are intended to shield the public from dishonest business practices.
DraftKings has agreed to return $3,011,766.77 to 7,075 online casino players in Connecticut who registered using promotions offering a "50% Casino Deposit Match" or "Casino Deposit Bonus," but company rejects all accusations, culpability, and misconduct. According to the DCP, DraftKings Casino deceived customers into believing that their initial deposit would be immediately rewarded with a 50% match, which was money that had no conditions attached.
Customers of online casinos were obliged by DraftKings to "play through their deposit and bonus more than one time without clearly disclosing the required play through to the patron," according to the state commission.
According to the DCP, the aforementioned DraftKings Casino marketing language was advertised from October 19, 2021, to January 4, 2023. Although claims will be paid out according to each customer's financial impact, the settlement amounts to roughly $425.70 per consumer.
"We are pleased with the outcome of this investigation and that affected consumers will be made whole,” said DCP Commissioner Bryan 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.”
In addition, DraftKings has agreed to pay the DCP $50,000 as part of the $3 million settlement.
Because of its affiliation with Foxwoods Resort Casino, DraftKings is a licensed online casino and mobile sportsbook in Connecticut. Additionally, the business operates a retail DraftKings Sportsbook at the Mashantucket Pequot Tribal Nation-owned and controlled tribal attraction.
Legal scrutiny of DraftKings' fine print is not unique. In a complaint filed in Philadelphia, Caesars Palace Online Casino is accused of being dishonest in a previous offer that promised new players a "100% Deposit Match Up To $2,500."
According to city attorneys, a new user at Caesars Palace Online Casino had to bet 15 times their initial deposit and possible bonus amount on slots, 30 times on video poker, and 75 times on "all other casino games" in order to really obtain the $2,500 match. This implies that an online slots player at Caesars Palace Online Casino would have needed to wager $75K on interactive slots in order to collect the entire $2,500 bonus on a $2,500 deposit ($5,000 with the potential match).
DraftKings and FanDuel are being sued by the City of Baltimore for allegedly engaging in exploitative business practices. The top iGaming and online sportsbook companies, according to city lawyers, have "exploited the most vulnerable" customers through unethical and dishonest business practices.
The most recent step in Connecticut's efforts to support its commercial and tribal gambling industries is the settlement reached with DraftKings Casino.
Legislation prohibiting online sweepstakes casinos that use dual-currency systems from functioning in the state was signed by Governor Ned Lamont (D) last month. In addition to providing free online slots, sweeps sites let users earn and/or buy "sweeps coins," which may be exchanged for real money.
One such sweepstakes casino, High 5 Casino, settled with the DCP in June for $1.5 million to address claims that the website operated online gambling without the proper license.
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