Massachusetts: DraftKings lawsuit moves to business litigation court

April 3, 2024 2:34 PM
Photo: Shutterstock
  • Mia Doyle, Special to CDC Gaming Reports
April 3, 2024 2:34 PM
  • Mia Doyle, Special to CDC Gaming Reports

The class action lawsuit filed against American DFS and sports betting company DraftKings will move to the Business Litigation Session of the Superior Court (BLS) in Massachusetts after the Middlesex County Superior Court granted DraftKings’ request for transfer.

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The lawsuit was initially filed in December by the Public Health Advocacy Institute (PHAI), a nonprofit organization dedicated to protecting public health through law and policy. Plaintiffs Melissa Scanlon and Shane Harris argued that the company’s $1,000 sign-up bonus did not properly disclose the terms and conditions associated with the promotion.

The bonus was advertised as a 20% deposit match, meaning that users were required to deposit $5,000 in order to receive the whole $1,000 in credits. It also has wagering requirements attached, requiring players to wager a total of $25,000 before they can withdraw any winnings associated with the bonus.

The case has been delegated to Judge Debra Squires-Lee and Judge Kenneth Salinger, who currently sit in BLS2. The BLS is designed to facilitate the resolution of complex business and commercial disputes that require individualized and collaborative case management.

DraftKings argued that the transfer was appropriate as the class action pertains to supposedly unjust business practices, a case that would necessitate “close case management” from the BLS. However, the plaintiffs believe the transfer is unnecessary and filed against the move. They argued that the Middlesex Superior Court is capable enough to handle consumer protection and deceptive advertising concerns.

At the same time, financial services provider Truist Securities released the results of a US consumer preferences survey on igaming and sports betting earlier this week. The results revealed that DraftKings was the “clear winner” regarding consumers’ preferred igaming provider, beating competitors FanDuel and BetMGM.