DraftKings will return more than $3 million to over 7,000 Connecticut customers under a settlement with state gaming regulators.
The settlement, announced Thursday, resolves allegations that DraftKings failed to clearly disclose the terms of its online casino deposit promotions.
The Connecticut Department of Consumer Protection said its Gaming Division identified multiple campaigns between October 2021 and early 2023 that did not meet Connecticut advertising requirements. The promotions, marketed as deposit matches or bonuses, allegedly omitted key conditions such as wagering requirements needed to unlock the advertised rewards.
DraftKings denies wrongdoing
DraftKings denied all wrongdoing and is not admitting liability as part of the agreement, which was finalized as an Assurance of Voluntary Compliance.
“Respondent denies all allegations in Case Nos: 2023-5, 2023-26 and 2023-89 and denies any and all liability or wrongdoing,” the agreement states.
“Respondent is entering into this Assurance solely for the purposes of settlement. This Assurance shall not be considered an admission of liability or wrongdoing or a violation of any law for any purpose.”
A DraftKings spokesperson said the company is “committed to compliance with all regulatory requirements,” adding:
“We value our relationship with the Connecticut Department of Consumer Protection and will continue to work collaboratively with them.”
How to access DraftKings payments
Despite denying wrongdoing, DraftKings will refund approximately $3.012 million to 7,075 affected patrons and will pay an additional $50,000 to the department’s consumer enforcement fund, as part of the agreement.
Users with active DraftKings accounts will receive a direct credit within 60 business days, while others will be sent checks to their last known address, according to the terms of the agreement.
Users will also be notified by email and have one year to claim unredeemed payments before the funds are subject to Connecticut’s unclaimed property process.
Restrictions on bonus terms, ‘free’ offers
As part of the settlement, DraftKings also agreed to enhance its responsible gaming disclosures in the state. That includes a requirement to clearly display all terms associated with deposit bonuses, playthroughs, and promotional wagers labeled as “free” or “risk-free.”
Going forward, the company must promote its “Casino Education Hub” to new users through recurring notifications and provide annual advertising compliance training to its Connecticut-facing marketing staff. The company will also submit yearly compliance reports for five years, including copies of promotional materials and summaries of consumer complaints tied to its bonus offers.
The case involved three separate enforcement files opened by DCP, including a February 2023 campaign that regulators said violated an earlier cease-and-desist order related to similar bonus promotions.
“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.”
Deposit bonuses spark multiple lawsuits
The agreement adds to growing scrutiny of bonus-related advertising across the online gambling industry.
DraftKings is fighting an ongoing class-action lawsuit in Massachusetts over a $1,000 bonus promotion that allegedly required new users to deposit $5,000 and wager $25,000 within 90 days—terms that plaintiffs say were not clearly disclosed. That case, filed by the Public Health Advocacy Institute, entered discovery earlier this year after a court denied DraftKings’ motion to dismiss.
In Maryland, DraftKings and FanDuel are both fighting a consumer protection lawsuit from the City of Baltimore, which alleges the two companies use misleading bonus bet promotions and algorithmic targeting to retain customers with gambling problems. Both companies deny the claims, and the case is still in early stages.
DraftKings had approximately 4.8 million active users across its platform in 2024, though the company does not break out how many were casino customers. Connecticut is one of seven states where online casino gaming is legal.
