DraftKings has agreed to voluntarily return $3 million to players in Connecticut as part of a settlement with the Department of Consumer Protection (DCP).
The settlement relates to DraftKings’ marketing tactics in the state, where the operator provided bonus offers that promised a deposit match or deposit bonus between October 2021 and January 2023.
These offers were subject to significant wagering requirements that were not clearly explained to consumers.
“Gaming operators must clearly communicate the terms of any promotion to their customers, including requirements to wager a certain amount or other conditions to obtain a promised award,” said DCP Gaming Division director Kris Gilman.
“We are happy that DraftKings has agreed to assess its promotions, provide additional training to its employees regarding Connecticut’s laws and regulations, and return funds to consumers who misunderstood and in many cases were completely unaware of the terms of the promotions they participated in.”
An estimated 7,000 players in Connecticut are expected to receive a refund in relation to the promotions.
DraftKings will also pay $50,000 for use in consumer complaint resolution programs, consumer education, consumer protection enforcement and litigation, and has agreed to provide annual training on Connecticut’s relevant laws to all Connecticut marketing and advertising personnel.
“We are pleased with the outcome of this investigation and that affected consumers will be made whole,” said DCP Commissioner Bryan T. Cafferelli. “Thank you to our Gaming Division team, who work tirelessly on behalf of Connecticut consumers to ensure fairness and safety in our legal gaming marketplace.”
Affected customers should receive communication from DraftKings within 60 days.