DraftKings Sued for Allegedly Misleading “Risk-Free” Bet Promotions
By Rachel Dapeer · Published November 20, 2025 · Updated November 20, 2025
Quick Take
- A federal judge allowed core fraud claims over DraftKings’ “risk-free” bet ads to proceed under New Jersey law.
- The ruling keeps a proposed nationwide class action alive; some secondary counts were dismissed.
- The court said key restrictions placed in fine print or hyperlinks could be deemed deceptive.
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Key Facts
- Plaintiffs: Sports bettors who placed “risk-free” or “no-risk” wagers promoted by DraftKings
- Central allegation: Refunds for losing bets were issued as limited-use site credits instead of cash
- Statute cited: New Jersey Consumer Fraud Act
Allegations in the Complaint
Plaintiffs assert that DraftKings advertised certain wagers as “risk-free,” implying bettors would receive cash back if the wager lost. According to the complaint:
- Losses were reimbursed as site credits that could not be withdrawn.
- Limitations on the credits were disclosed only in small print within ads or through linked terms and conditions.
They argue that these disclosures were insufficient for an average consumer to understand the true cost of participation.
Court’s Ruling
- The judge found that placing critical terms in “tiny print or buried links” could constitute deceptive advertising under state law.
- Core consumer-fraud and false-advertising claims survive, allowing nationwide class discovery to move forward.
- Some peripheral causes of action were dismissed, but the central fraud theory remains intact.
What’s Next
The case now advances to discovery and class-certification briefing. DraftKings may seek to narrow the class definition, move for summary judgment, or consider settlement options as the merits are further litigated.
Official Source
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