DraftKings Wins $14.2 Million Sports Betting Lawsuit, Seeks Court Costs

Last year, an Iowa sports bettor filed a lawsuit against DraftKings for $14.2 million related to a wager he believed he rightfully won during the PGA Tour event at Pebble Beach in 2024. 

The plaintiff, Nicholas Bavas, placed wagers on the exact finish for the event as weather was heading toward the event and there was a chance the tournament would be called early. The Sunday of the tournament was called off, resulting in only 54 holes. So, when Bavas placed the bet, it was based on the exact positions of the golfers and where they were heading into Sunday. 

In essence, his wager mirrored the current standings, hoping to get a win in the event the tournament was called off. 

However, the wager he placed was for the full-length tournament. The wager was a $325 20-pick parlay that would've paid out the massive sum. 

As a result, he filed a lawsuit, citing breach-of-contract and consumer-protection claims, after his wager was voided against DraftKings and Crown IA Gaming, which is a licensed sportsbook by the Iowa Racing and Gaming Commission. 

At the time, Bavas' lawyer said sportsbook governance is “a dizzying array of interlocking sets of rules that may or may not govern each bet depending on the type of wager placed, the specific event, and the particular sport.”

Court Rules in Favor of DraftKings

Now, as of July 2026, DraftKings has prevailed in this case and is now seeking court costs from Bavas. The bill of costs is for $23,502.80. 

This case ended on July 9, when the court entered a judgment in favor of DraftKings and Crown IA Gaming. 

DraftKings Has Faced Other Legal Challenges

DraftKings has dealt with other legal issues in the past, including against state regulators. 

In 2024, there were two separate instances, including DraftKings' alleged improper use of credit cards and allowing players to wager. The other was operating an unwinnable slot machine in Connecticut. The Connecticut Department of Consumer Protection’s Gaming Division (DCP) fined DraftKings $19,000 after finding that 522 players wagered almost $24,000 combined and no one won.