• Loading stock data...
Saturday, February 21, 2026

Judge Says Deceptive Advertising Suit Against DraftKings Can Go Forward

  • Consumers are suing DraftKings for what they say is a deceptive marketing scheme.
  • The betting operator’s motion to dismiss the case was denied this week.
Matthew Emmons-USA TODAY Sports

A Massachusetts judge denied DraftKings’ motion to dismiss a class action lawsuit against the company arguing deceptive marketing schemes Wednesday.

A group of bettors are suing the company for what looked like an easy incentive for new bettors, but it was actually a tough bonus to earn. The gamblers are represented by the Boston nonprofit Public Health Advocacy Institute.

DraftKings ads touted a $1,000 “deposit bonus.” In reality, to get the bonus, customers had to deposit $5,000 and wager at least $25,000 within 90 days—and the $25,000 had to be bet on odds of “-300 or longer” to receive the promotion, the suit says.

The Public Health Advocacy Institute is perhaps best known for its successful lawsuits against tobacco companies. Its longtime president, Richard Daynard, said the deposit bonus was a “bogus promotion, designed to lure customers into an addictive trap.”

To meet the requirements, users would have to bet more than $276 per day for three months to earn the promotion, the case says.

“This decision opens the door for discovery and allows us to depose the DraftKings staff responsible for the promotion and to discover how many of the hundreds of thousands of customers in Massachusetts who signed up for the $1,000 signup bonus actually got what they believed they were getting,” Mark Gottlieb, one of the PHAI attorneys representing the users, said in a statement to Front Office Sports.

DraftKings argued all these details were included in the terms and conditions, and it sought to have the case dismissed. But Judge Debra A. Squires-Lee of the Superior Court of Massachusetts didn’t buy it. In rejecting DraftKings’ motion to dismiss, Squires-Lee wrote that “these allegations plausibly suggest that [bettors] were harmed because they bought into a service worth less than they believed based on the promotion.” Still, she wrote that “the overall deceptiveness of the mobile app and website, sign up process, and terms and conditions cannot be resolved without additional information.” The case marches on, though it’s possible DraftKings could try to end this with a settlement.

Melissa Scanlon and Shane Harris are the users suing DraftKings “on behalf of themselves and all others similarly situated.” DraftKings has been headquartered in Massachusetts since it opened in 2012. A representative for DraftKings did not immediately respond to requests for comment.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Tennessee quarterback Joey Aguilar (6) pulls back for the throw during the Music City Bowl NCAA college football game against Illinois on Dec. 30, 2025, in Nashville, Tennessee.

Judge Denies Tennessee QB Joey Aguilar Another Year of NCAA Eligibility

The ruling has implications for the NCAA’s overall eligibility fight.
Michael Rubin; Feb 18, 2024; Indianapolis, Indiana, USA; Fanatics owner Michael Rubin attends the 73rd NBA All Star game at Gainbridge Fieldhouse.

Inside Fanatics’s Battle to Block a Polymarket Hire

The two sides informed the court that they have reached a settlement.
Feb 8, 2026; Santa Clara, CA, USA; Seattle Seahawks tight end AJ Barner (88) makes a catch against New England Patriots safety Craig Woodson (31) and cornerback Marcus Jones (25) during the first quarter in Super Bowl LX at Levi's Stadium.

Trump’s CFTC Moves to Prevent States From Ruling on Prediction Markets

The stage is set for an eventual Supreme Court battle over sports event contracts.

Featured Today

[Subscription Customers Only] Jul 13, 2025; East Rutherford, New Jersey, USA; Chelsea FC midfielder Cole Palmer (10) celebrates winning the final of the 2025 FIFA Club World Cup at MetLife Stadium

Soccer’s ‘Crown Jewels’ Are Devouring Smaller Clubs

Mega conglomerates are feeding a big business machine. Fans are furious.
Feb 10, 2026; Cortina d'Ampezzo, Italy; Cory Thiesse and Korey Dropkin of the United States during the curling mixed doubles gold medal game during the Milano Cortina 2026 Olympic Winter Games at Cortina Curling Olympic Stadium
February 20, 2026

Curling Clubs Are Swept Up in Olympics Fever. Can It Last?

Every four years, organizations field an influx of curling-curious patrons.
Max Valverde by Ron Winsett
February 17, 2026

How Ski Mountaineering’s Hype Man Went From TikTok to NBC

Max Valverde’s gushing over the niche sport vaulted him to Olympic broadcaster.
Feb 11, 2026; Livigno, Italy; Jaelin Kauf of the United States during freestyle skiing women's moguls final during the Milano Cortina 2026 Olympic Winter Games at Livigno Aerials & Moguls Park
February 13, 2026

The Surprise Hit of the Winter Olympics: First-Person Drone Views

Tiny drone cameras have reshaped the Olympics viewing experience.
Jason Robins

DraftKings CEO on Plummeting Stock: ‘We Have to Prove It’

Shares of all the online sportsbook companies are in the red.
Sponsored

Olympic Hockey Betting Preview: USA and Canada Take Center Ice

Olympic hockey betting odds shift as USA and Canada dominate early action, per BetMGM’s 2026 Winter Games preview.
February 13, 2026

DraftKings’ Profit Breakthrough Isn’t Enough for Wall Street

The stock market wasn’t impressed by DraftKings’ first ever yearly net profit.
Sponsored

From MLS to AUSL: Jon Patricof on Building Sports Leagues

Jon Patricof on athlete equity, fan-first strategy, and how women’s sports can reshape the future of league building.
Fanduel
February 11, 2026

FanDuel Joins DraftKings in Ditching Credit Card Deposits

Credit cards are “the most expensive forms of payment,” an analyst tells FOS.
Feb 8, 2026; Santa Clara, CA, USA; Bad Bunny performs during the half time show at the game between New England Patriots and Seattle Seahawks in Super Bowl LX at Levi's Stadium.
February 10, 2026

Cardi B Is Cautionary Tale for Prediction Markets

Whether she “performed” in the halftime show is a hotly debated topic.
February 8, 2026

Kalshi Has Big Glitches During Super Bowl Due to High Demand

Kalshi struggled with deposit delays as Super Bowl traffic overwhelmed the market.
Jason Robins
February 7, 2026

DraftKings CEO Says Calls to Ban Prop Bets Are ‘Crazy’ 

Jason Robins also thinks DraftKings can dominate the prediction-market industry.