- As regulators ramp up scrutiny of sportsbook promotions, DraftKings has agreed to overhaul its bonus advertising practices following a state investigation in Connecticut.
- The settlement highlights growing pressure on U.S. online betting operators to disclose wagering requirements and other key terms tied to promotional offers.
BOSTON – DraftKings will return $3 million to approximately 7,000 sports betting and casino players in Connecticut as part of a regulatory settlement over its promotional practices.
The Connecticut Department of Consumer Protection (DCP) concluded an investigation into DraftKings’ bonus offers, determining that some of the company’s marketing practices may have violated state gaming laws between October 2021 and January 2023.
Specifically, DraftKings was found to have advertised sportsbook promotions and deposit match bonus offers without clearly disclosing material terms… most notably, significant playthrough requirements.
Though the Boston-based operator denied all wrongdoing in the settlement agreement, it agreed to refund affected players and overhaul its marketing practices in the state.
Promo Transparency Under Scrutiny
The settlement now requires DraftKings to clearly state playthrough requirements in all promos, including any multiplier required before a customer can withdraw bonus funds. In addition, the company must disclose whether bonuses are paid in U.S. dollars or platform-specific virtual currency.
While the Connecticut online sports betting agreement does not carry additional penalties or fines, DraftKings will also contribute $50,000 toward consumer education and complaint resolution initiatives. Furthermore, the operator must implement annual staff training on compliant advertising practices within Connecticut.
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The refunds, expected to be issued within 60 business days of the finalized settlement, apply to players who participated in the specific promotional campaigns under review. For customers who fail to claim their refund within 180 days, DraftKings is required to notify the DCP.
DraftKings is currently fighting similar legal battles in multiple states. A high-profile class action in Pennsylvania claims the company structured its $1,000 deposit match in a way that made it nearly impossible for players to access the advertised value, due to opaque and burdensome wagering requirements.
Plaintiffs allege that such terms are intentionally buried, violating consumer protection laws.
The Connecticut settlement underscores the increasing pressure regulators are placing on USA online sportsbooks to ensure full transparency around bonus terms – a core strategy in customer acquisition. Moving forward, sportsbooks are striking a careful balance between aggressive marketing and strict compliance.
Michael spends most of his time betting on over/unders and analyzing algorithms in attempts to beat the book. His focus on statistics comes from an early understanding of mathematics as well as knowledge of opportunity costs. Michael enjoys playing basketball and reading about the NBA whenever he has the free time. When he is not writing, he can be found in Mississippi hitting the sportsbooks and enjoying a margarita… on the rocks, no salt.
