DraftKings has agreed to refund over $3 million to thousands of Connecticut customers following a state investigation into the company’s marketing practices. The Department of Consumer Protection (DCP) initiated a review of the sports betting and online casino operator’s promotional campaigns, leading to this agreement.
The investigation focused on promotions from October 19, 2021, to January 4, 2023. These offers included deposit matches and bonuses that, according to state officials, were not always clearly communicated to customers. As a result, more than 7,000 customers are eligible for refunds.
Connecticut officials emphasized the importance of clearly displaying bonus terms to customers. They pointed out that many users were unaware or confused about the specific conditions tied to the bonus offers, such as wagering requirements.
As part of the agreement, DraftKings will issue refunds and implement annual training for its Connecticut-based marketing and advertising staff to ensure compliance with state regulations. The company has also committed to promoting its educational resources, such as game guides and explanations of how bonuses work.
DraftKings is also required to pay $50,000 to support customer complaint resolution, enhance customer education, and aid in enforcing gaming laws.
Connecticut officials lauded the DCP’s efforts as DraftKings moves to issue customer refunds. Bryan T. Cafferelli, Commissioner of the DCP, expressed satisfaction with the resolution, stating that it ensures affected customers receive their money back while promoting fair gaming practices. Kris Gilman, Director of the Gaming Division, emphasized the importance of accurate advertising in the gaming industry and noted DraftKings’ commitment to revisiting its marketing strategies to prevent future issues.
DraftKings plans to inform eligible customers about refunds within the next two months. Customers with active accounts may see refunds credited to their accounts. State officials also advise residents to be cautious of potential scams, as fraudsters might impersonate DraftKings representatives to steal personal information.
Currently, DraftKings and FanDuel are licensed to operate online casinos in Connecticut. Officials encourage residents with questions about gambling advertisements or promotions to contact the DCP’s Gaming Division for assistance.
Those seeking help with gambling issues can find support through the Connecticut Council on Problem Gambling and other state-backed programs.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com