DraftKings to refund $3m after investigation into marketing tactics in Connecticut
The Department of Consumer Protection has announced a settlement agreement with the company.
US.- The Department of Consumer Protection (DCP) has announced a settlement agreement with DraftKings following an investigation into alleged violations of Connecticut’s gaming laws related to marketing and advertising. The company has agreed to return more than $3m to 7,000 Connecticut consumers who participated in certain bonus offers that promised a deposit match or deposit bonus between October 19, 2021 and January 4, 2023.
According to DCP, the company also agreed to provide annual training on relevant laws to marketing and advertising personnel and to increase the promotion of its education hub and game tutorials for bonus promotions. It also agreed to pay $50,000 for use in consumer complaint resolution programmes, consumer education, consumer protection enforcement and litigation.
The regulator said that affected consumers will receive communication regarding their refund within 60 days.
DCP Commissioner Bryan T. Cafferelli said: “We are pleased with the outcome of this investigation and that affected consumers will be made whole. 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.”
DCP gaming division director Kris Gilman added: “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. 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.”
The DCP Gaming Division recently announced a settlement with High5Games following an investigation into the operation of an unlicensed online casino, High5Casino. High5Games’ licence was suspended in March for alleged violations of Connecticut’s gaming laws. DCP said High5Games has ceased now operation of its online casino in Connecticut. Its online gaming service provider licence has been reinstated, effective May 22. The operator has agreed to pay around $1.5m as part of the settlement.
