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When you fall yourself a King, as DraftKings does, then you’re going to get everyone’s best shot — especially in a cut-throat industry like legal sports betting. But what’s that famous saying, “if you come at the king, you best not miss?” That’s the case in this story.
Toward the tail-end of 2024, DraftKings was hit with a class-action lawsuit in the state of New York. Any lawsuit is bad, but especially one in the Empire State (New York’s sports betting business is tops in the nation). The lawsuit came after DraftKings ads over “deceptive” language.
This month, we got some clarity into the situation. And it’s good news for DraftKings — not just in the state, but nationally. Keep reading and we’ll detail the ramifications of the case.
New York Bettor vs. DraftKings
It started when Nerye Aminov sued DraftKings in New York, claiming the “get $1,000 deposit bonus” message was misleading and violated state consumer protection laws. His argument? The promotion created the impression that new customers would get a full $1,000 in bonus cash immediately after signing up and making a deposit.
According to the suit, Aminov deposited $500, expecting the full bonus. Instead, he got $100 — because the bonus is actually paid out as 20% of your deposit, and only after you wager enough to unlock it. The lawsuit claimed that to get the full $1,000, a new user would have to deposit $5,000 and bet at least $25,000, a fact Aminov said was not clearly disclosed in DraftKings’ ads.
Aminov accused DraftKings of unfair and deceptive marketing practices, intentional misrepresentation, and unjust enrichment. He said he wouldn’t have signed up if he knew how the promotion really worked, and he sought restitution not just for himself but for other bettors in New York and nationwide who joined DraftKings under the same promotion.
It all sounds ridiculous, right? But hey, in this country, frivolous lawsuits have a somewhat decent track record. But luck was not on Aminov’s side here.
The Court Scores A Win For DraftKings
A federal judge dismissed the lawsuit, siding with the DraftKings’ argument that the promotional terms were clearly and conspicuously disclosed. This stuff is usually in the fine print, something Aminov obviously didn’t read.
The court pointed out that on DraftKings’ deposit page, the top of the screen explicitly said users “will receive a 20% deposit bonus up to $1,000,” and the bonus terms were in the same font size as other text on the page. The judge ruled that a “reasonable consumer” would not be misled into thinking simply signing up and depositing would get them the full $1,000. Go figure!
All in all, the court decided that the terms were clear enough that bettors had the information they needed to understand the requirements — even if they didn’t read them closely. The dismissal means Aminov’s claims in New York are dead. For now at least, there’s a chance he appeals.
Why This Win Matters For DraftKings Elsewhere
The New York ruling isn’t just a win in one case — it’s potentially a blueprint for DraftKings to fight off similar lawsuits in other states. The company has been targeted by multiple legal challenges over its deposit bonus marketing, with plaintiffs making almost identical arguments to Aminov’s.
For example, DraftKings is currently facing a lawsuit from the City of Baltimore that claims its promotions are “deceptive and unfair.” Maryland law also uses the “reasonable consumer” standard to judge misleading advertising — the same legal test used in New York. If DraftKings can point to the New York decision as persuasive authority, it could sway judges in other states to dismiss similar claims.
As deep as DraftKings pockets are (they are), class action lawsuits are still costly (to fight or to pay if you end up losing) and a resource hog. It’s all a burden, and a big one at that. States and cities across the country are increasingly scrutinizing how sportsbooks market to new customers. Sure, some might just be after an easy payday, but others do have legit concerns given how new the legal betting industry is. The effect of these promotional ads on everyday bettors is still being studied.
Here’s another saying with remembering in this situation: “give the devil an inch, he’ll go a mile.” Not to call these city and state officials the devil, but they could be emboldened if DraftKings loses a big case. Seeing them win, as they did in New York, acts as a deterrent for more lawsuits.
Last thing before we let you go: if you’re a bettor, please read the fine print (there’s also fine print to sportsbook bonuses). No top betting app is just going to give you free money without attaching some strings to it. Don’t be like Aminov and understand what you’re signing up for. Throw the fine print into ChatGPT if you have to, but don’t blindly sign up for things without knowing all the details.
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