A Massachusetts Superior Court judge has largely rejected DraftKings’ attempt to end a consumer lawsuit over a sportsbook promotion, clearing the way for the case to continue.
The action was brought by the Public Health Advocacy Institute (PHAI) and focuses on a “$1,000 Deposit Bonus” advertised to new sportsbook users in Massachusetts.
In Scanlon et al. v. DraftKings, Inc., a case dating back almost two years, an order issued on 17 February allows claims under the state’s consumer protection statute to move forward.
The court declined to grant most of DraftKings’ request for summary judgment.
The decision sets the stage for class certification proceedings, broader evidence gathering and a potential trial.
Named plaintiffs Melissa Scanlon and Sean Harris seek to act on behalf of Massachusetts customers who argue that material conditions tied to the promotion were not properly presented.
According to court filings, participants were required to deposit $5,000 and stake at least $25,000 on qualifying wagers within a 90-day period to access the advertised offer.
Even then, any reward was issued as site credit that could not be withdrawn as cash and could only be used for additional betting.
In seeking dismissal, DraftKings submitted visual materials it said reflected how the promotional terms were displayed. The company did not provide records showing exactly what the two plaintiffs viewed at the time they signed up.
Instead, it offered recreated versions generated through test accounts or graphic tools. The court noted that multiple iterations were filed, with subsequent versions addressing deficiencies identified in earlier submissions.
Judge Squires-Lee concluded that these circumstances create factual disputes suitable for a jury, particularly on whether consumers received reasonable notice of the conditions attached to the offer.
That finding was sufficient to keep the consumer protection claims alive.
Ruling to lead to deeper investigation
Jacob Wolk, an attorney for the PHAI, said the ruling rejects the use of reconstructed materials to defeat allegations that customers were misled by the “$1,000 bonus” marketing.
Executive Director Mark Gottlieb stated that the organisation intends to pursue expanded discovery to examine how the promotion was designed and rolled out.
The court did side with DraftKings on two limited points. One claim relating to alleged misuse of the plaintiffs’ personal information was dismissed.
A request for prospective injunctive relief was also rejected as moot because the company ended the deposit bonus promotion in 2023, the same year the lawsuit was filed.
The group behind the lawsuit has framed the dispute within a wider public health context.
It noted that since 2013 the American Psychiatric Association has categorised Gambling Disorder alongside substance-related addictions such as cocaine, opioids, tobacco, alcohol and heroin.
With the bulk of the motion denied, the matter now proceeds into the next procedural phase, where the parties will address class issues and continue preparing the evidentiary record.
DraftKings did not provide comment when approached by NEXT.io.
