Notch another one in the win column for DraftKings, as Southern District of New York Judge Denise Cote dismissed a class action lawsuit against the sportsbook over its promotions.
After prevailing in a similar lawsuit in the Eastern District of New York in July, Cote’s ruling drew many of the same conclusions as the judge drew in that case. Both cases observed that there were clear opportunities for the plaintiffs to read the terms of service surrounding the $1,000 deposit bonus and the “No Sweat” bet, so they cannot argue that DraftKings was misleading in how these offers were presented.
Plaintiffs didn’t have a specific DK ad in mind
Cote also pushed back at the suit because the plaintiffs could not point to the exact advertisement the plaintiffs had seen. The plaintiffs tried to argue that didn’t matter because all of the ads are relatively the same, but Cote said a specific example is necessary in order to state a claim.
She went into more detail on other elements of the case, even though the clarity of the bonus and lack of specifity were all she said was necessary for a dismissal, including picking apart the suit’s product liability claims.
“The product is an online betting service, which is not a physical product and therefore not generally covered by products liability law,” she wrote. “Even if products liability law could apply to certain types of online services, however, plaintiffs would still be required to plead that they were physically injured through the use of the DraftKings platform.”
Casinos don’t owe problem gamblers help
She also cited the ruling in Sam Antar’s case against BetMGM, which continues to impact other gaming-related court cases across the country. In that case and appeal, the judges concluded that New Jersey casinos and online casinos are under no obligation to to stop addicted gamblers from gambling. Cote agreed.
“At bottom, the plaintiffs have not shown that DraftKings had a duty to prevent addicted gamblers from using its platform or to protect those that do. In essence, the plaintiffs’ theory seeks to circumvent the decision made by New York State’s legislature to legalize online gambling in New York State.”
It is another win for DraftKings in federal court, and another case to set precedent for the many class action lawsuits against sports betting operators in federal courts across the country.
However, there is still one court which will hold a trial over DraftKings promotions and how deceptive they may or may not be. A state court case in Massachusetts where a DraftKings customer has sued the operator is moving forward. DraftKings is currently seeking summary judgment in the case, which the judge held a hearing on earlier this week.
