Ad Language Led to Investigation
According to the DCP, the alleged violation occurred during ads run between 2021 and 2023, which promoted deposit bonuses. The regulator said that the ads in question did not include key terms and conditions, including wagering requirements.
The missing language from the ads led many bettors to claim them without fully understanding the terms and conditions. They assumed that the deposit bonus was being paid out in real money, unaware that it would instead be a credit that had to be wagered before it could be withdrawn.
Additional Penalties Focus on Responsible Gaming
The $3 million refund is an eye-catching penalty from the DCP, but it wasn’t the only fine the company will pay. DraftKings will also be required to pay $50,000 to support various DCP programs.
In addition to the monetary penalties, the operator will host and finance an annual training seminar on Connecticut’s advertising laws for all marketing personnel working in the state. This will help train their employees to ensure they know the language that each advertisement must include.
Lastly, the settlement requires the online casino to further promote its Casino Education Hub, a responsible gaming resource that educates bettors on various topics, including understanding casino promotions.
DraftKings Refuses Liability
While the gambling giant agreed to refund the affected customers, the settlement does not require any admission of guilt. DraftKings continues to insist that it did not violate the laws in question, and for good reason.
The company is currently facing similar accusations in Massachusetts and Maryland. An admission of guilt in the settlement with the DCP would have doomed the operator’s defense in the other two Northeastern markets. While the large penalty is a setback, the ability to avoid admitting liability represents a significant and potentially money-saving advantage.
