DraftKings to refund $3M+ to over 7,000 Connecticut users
DraftKings is refunding more than $3 million to over 7,000 users in Connecticut after state gaming regulators determined that certain promotional offers breached legal standards. These promotions, including deposit matches and bonuses, failed to clearly disclose wagering requirements, prompting regulatory intervention.
Background on DraftKings dispute
Connecticut regulators raised concerns over DraftKings’ deposit bonus promotions, which ran from October 2021 to early 2023. These offers, commonly used in online gambling, typically require users to meet specific wagering conditions before accessing bonus funds. However, officials found that DraftKings did not adequately disclose these requirements, potentially misleading thousands of users.
According to the state’s gambling regulators, DraftKings failed to legally disclose key elements of its promotional offers, such as wagering thresholds. Disclaimers were often absent or not prominently displayed, leading to user confusion. These practices may have violated Connecticut’s advertising laws, which mandate that all major terms be clearly presented in gambling promotions.
Connecticut’s enforcement actions
One of DraftKings’ 2023 promotional campaigns may have breached a prior cease-and-desist order, intensifying regulatory scrutiny. The state launched three separate investigations—Case Nos. 2023-5, 2023-26, and 2023-89—into potentially misleading advertising practices.
As part of the settlement, DraftKings must now clearly display all bonus conditions, including wagering requirements and expiration dates, in its advertisements. The company is also required to promote its Casino Education Hub to help users better understand gambling terms and associated risks. Additionally, DraftKings must submit annual compliance reports and provide training to its marketing staff on Connecticut’s advertising laws for the next five years.
DraftKings denies allegations but agrees to settlement
While agreeing to refund over $3 million, DraftKings has denied any wrongdoing. The company stated it remains committed to regulatory compliance and described the settlement as a voluntary resolution. The agreement, known as an “Assurance of Voluntary Compliance,” allows the matter to be resolved without an admission of liability.
The agreement states, “Respondent denies all allegations in Case Nos: 2023-5, 2023-26, and 2023-89 and denies all liability or wrongdoing. Respondent is entering into this Assurance solely for settlement. This Assurance shall not be considered an admission of liability or wrongdoing or a violation of any law for any purpose.”
Connecticut is one of only seven US states where online 바카라s are legal. DraftKings is a major operator in the state’s regulated market. As of 2024, the company reported approximately 4.8 million active users across its platforms, although the number specific to Connecticut’s 바카라 segment has not been disclosed.
Refund distribution process
A total of 7,075 . The amount each user receives will depend on their activity during the affected promotional period, including how much they deposited or wagered. Refunds will be issued as account credits for active users, while others will receive cheques mailed to their last known address.
All affected users will be notified via email and will have one year to claim their refund. After that period, unclaimed funds will be transferred to the state’s unclaimed property division.
In addition to the refunds, DraftKings will pay $50,000 to Connecticut’s Consumer Enforcement Fund, which supports regulatory enforcement and may be used for public education or to strengthen advertising oversight.
Related legal actions
DraftKings is also facing legal challenges in other US states. In Massachusetts, the company is being sued over a promotion that allegedly required users to deposit $5,000 and wager $25,000 to receive a $1,000 bonus. In Maryland, Baltimore City has filed a lawsuit against both DraftKings and FanDuel over similar allegations of misleading advertising.
These cases reflect a broader trend of increased litigation and regulatory scrutiny aimed at enhancing consumer protections in the online gambling industry.
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