A lawsuit filed earlier this year in New York against leading U.S. sports betting operator DraftKings has been dismissed.
New York-based bettor Samantha Guery alleged she lost out on the company’s “risk-free” promotional bet offers. The case was one of many against operators using that specific terminology when promoting insurance offers on initial wagers from new customers.
However, in this case, Guery proved uncontactable by her lawyers for several months. The team filed to be relieved from the case before Guery finally got in contact with the court and asked for it to be voluntarily dismissed.
“We were finally able to reach plaintiff,” said an August 9 filing from lawyers Reese LLP.
“Without waiving privileges, she was generally unavailable due to health issues and has agreed to allow us to file a Notice of Voluntary Dismissal. We have made the defendant [DraftKings] aware of these developments, and they do not oppose dismissal or this request.”
The Lawsuit
The original claim was filed on behalf of Guery in mid-April 2024 in the U.S. District Court for the Southern District of New York. The lawsuit, Guery vs DraftKings Inc., alleged that the term “risk-free,” as used by DraftKings in its promotion, was false advertising.
It said that bettors were not returned to their original $100 position after wagering their $100, as any losses were covered with bonus money and not actual cash. It also said that DraftKings’ rake, or vig, also came into play as a potential risk for the bettor.
“The promotion required that the customer place a bet with their own money. If a customer lost their bet, they were not returned to their original position,” the lawsuit read.
“Instead, their accounts were credited with a “Free Bet” that was worth less than its counterpart in U.S. dollars implied by the promotional materials.”
Across the U.S., several states have cracked down on the terminology, and in those that haven’t, there have been lawsuits. Operators have even tried different terms essentially meaning the same thing, such as in this recent lawsuit against Hard Rock Sportsbook in Florida, which took umbrage with the phrase “No regret” in the sportsbook’s offer.
Case Closed
However, in this case, DraftKings will not have to contest the claim in court.
“While DraftKings does not oppose counsel’s motion to withdraw in principle, we are reluctant to incur expenses further litigating a case with a nonresponsive, unrepresented Plaintiff who lacks standing to bring this suit,” DraftKings said in a letter to the New York court.
The operator was also in hot water nationally this week, as it proposed adding a surcharge to winning bettors payouts in states with high tax rates on sports betting. That included New York, which charges sportsbooks 50% of revenues.
However, other operators, including main rival FanDuel, did not follow suit. DraftKings was forced to back down from the move just days after announcing it because of the overwhelmingly negative customer response.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
