Boston-based sportsbook DraftKings Inc. has voluntarily agreed to return more than $3 million to 7,000 people who participated in certain bonus offers from 2021 to 2023, and adhere to state regulations when using terms like “bonus,” “free,” or “complimentary,” according to a settlement agreement with the state Department of Consumer Protection, state officials announced today.
According to a Thursday announcement by the state DCP, that office launched an investigation into “alleged violations of Connecticut’s gaming laws related to marketing and advertising” after 7,000 Connecticut consumers participated in bonus offers that promised a deposit match or deposit bonus between October 19, 2021 to January 4, 2023.
DraftKings/Foxwoods is one of two licensed online casinos in the state. The other is FanDuel/Mohegan Sun.
“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,” said DCP Gaming Division Director Kris Gilman. “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.”
DraftKings has also agreed to pay DCP $50,000, which will go to the department’s Consumer Protection Enforcement Fund Account, which is used for consumer complaint resolution programs, consumer education, consumer protection enforcement, and litigation.
For their part, DraftKings has denied any wrongdoing or that its staff violated any law, but that they only wanted to settle the matter, according to the agreement. DraftKings has also stopped these sorts of bonus offers, and all promotions in the state that offer a “Casino Deposit Bonus,” “Casino Deposit Match” or “Rollover Bonus,” according to the agreement.
DraftKings through the agreement will not use terms such as “gift,” “free,” “complimentary” or say any promotion is offering a “bonus” without making sure something is either truly free or without clearly explaining requirements, terms and conditions.
The agreement stipulates that DraftKings will not promote any online casino promotion offering a “bonus” or “complimentary” that require consumers to play through their deposit and bonus more than one time without clearly disclosing the required play through to them as per the law, according to the agreement.
DraftKings also agreed to provide annual training on Connecticut’s relevant laws to all Connecticut marketing and advertising personnel, provide enhanced promotion of its education hub and game tutorials for bonus promotions, and pay $50,000 for use in consumer complaint resolution programs, consumer education, consumer protection enforcement and litigation.
Those who will receive a refund will get a communication from DraftKings within 60 days. DCP warned consumers to beware of scammers trying to impersonate DraftKings to steal personal information, and urged the public to contact DCP’s Gaming Division via email here if they get any suspicious communications.