Hard Rock Digital faces a federal class action lawsuit in the Middle District of Florida over its promotional “No Regret First Bet” bonus offer.
The lawsuit, filed by plaintiff Brandon Montgomery, argues the Seminole Tribe-owned operator engaged in deceptive and misleading practices by advertising “risk-free” bets.
It follows similar class actions relating to promotional bonus bets filed against other operators in recent years, including DraftKings and Caesars.
The lawsuit read: “Once the new user loses their initial bet, they are not in the same position as they were before placing their bet, in direct contrast to the advertising materials of Defendant.
“New user losers are left with nothing but regret and half of the value they put into the app.”
The lawsuit detailed that the promotions required users to front their own money, and that bonus funds must be wagered to be turned back into dollars.
It also highlighted that the bonus bet was worth only half of its original dollar value following a loss, since users did not recover the bet’s initial stake.
Montgomery’s attorney argued the promotion aimed to entice new users to make riskier bets, such as parlays or bets with higher odds, during their first time on the app.
The complaint said the plaintiff as such brought claims against Seminole Hard Rock Digital LLC under Florida Statutes, Chapter 501 on behalf of himself and his class.
Hard Rock launches December 2023
Following years of legal wrangling, the Seminole Tribe made its Hard Rock Bet platform available statewide for all users on 5 December 2023, following a November soft launch.
The tribe has a state-wide monopoly through its 2021 compact with Florida, which survived despite federal and state challenges.
Following multiple class action lawsuits, most sports betting operators have moved away from language suggesting “risk-free” bets in their promotions.
FanDuel currently offers “no sweat” tokens to some users, which similarly grant players bonus bets in the event of a loss.
