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Home Legal & Compliance

Massachusetts Sues DraftKings for Deceptive Bonus Advertisement

Staff GHNbyStaff GHN
14 May, 2024
in Legal & Compliance
Reading Time: 2 mins read
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DraftKings Intensifies Legal Action Against Former VIP Head
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The Public Health Advocacy Institute, the prosecuting entity in this case, asserts that the $1,000 bonus wager promotion is unbalanced, misleading players into believing they are acquiring a windfall of $1,000 at no cost. According to the lawsuit, the stipulations of this offer are almost impossible to fulfill.

Understanding The Mechanism Of Bonus Marketing

To qualify for the promotional payout, a patron is required to deposit $5,000 and gamble $25,000 within a period of 90 days. Furthermore, the bonus is non-redeemable and non-transferable, which enhances the complexity of conditions for the players.

Despite this stringent framework, DraftKings does not appear to be diverging from what is considered customary bonus providing convention in the United States. The Public Health Advocacy Institute’s formal complaint details its criticisms:

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DraftKings was fully aware, or reasonably ought to have been, that its advertising and promotional strategies were misleading to their intended clients; novice sports bettors were highly inclined not to be conversant with the gambling jargon in the additional disclosure.

Public Health Advocacy Institute,

The Institute’s primary intention is to correct inadequacies in the procedures companies who advertise products with propensity for habit-forming use in their marketing strategies. Predominantly, the institute has pursued tobacco companies, but with the rapid increase in gambling, we can anticipate more of such endeavors to certify that the sector remains secure.

Citizenry Not Turned Into Addicts By DraftKings

Significantly though, the Institute is not reproaching DraftKings with intentions of converting its users into compulsive gamblers, instead they suggest that the organization takes a more prudent approach in wording its bonus agreement to reduce misinterpretation by players. DraftKings are not applying any strategies that are any different from what it has already implemented in other states; this well-known company offers this bonus scheme across 22 states.

Additionally, DraftKings is a part of American Gaming Association’s Have A Game Plan, an initiative that aims to foster consciousness of safe and responsible gameplay and increase knowledge amongst consumers about legitimate gambling mechanisms.

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Tags: draftkingsmassachusettsnorth americasportsusa
Staff GHN

Staff GHN

We are the editorial team at Gambling Hub, where precision meets insight in gambling industry reporting. Staffed by a knowledgeable team of betting and gaming experts, we are committed to deeply analyzing the dynamic world of gambling with thorough reviews and an impartial perspective. Our mission is to make information about the gambling sector universally accessible, ensuring it is clear and approachable for everyone. In every piece on Gambling Hub, we aim to deliver content that not only informs but also enhances our readers' understanding, helping them navigate the complexities of the gambling landscape.

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