The Department of Consumer Protection’s (DCP) investigation into betting provider DraftKings has resulted in the return of a substantial $3 million to customers in Connecticut.
DraftKings was subject to a probe by the DCP into the marketing tactics of the gambling operator, which allegedly breached the state’s advertising laws.
“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.” – Kris Gilman, DCP Gaming Division Director
DraftKings to return $3m to Connecticut customers
The DCP statement has now resolved the investigation into DraftKings, which centered on a betting promotion that advertised matching betting stakes on a successful initial deposit.
“DraftKings agreed to return more than $3 million 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,” said the official release.
The DCP has instructed the betting operator to provide annual training on Connecticut’s marketing and advertising laws to staff. This also led to a review of promotions within the company’s education hub and game tutorials for bonus promotions.
DraftKings has also launched a new tool to help those overspending on gambling, called “My Budget Builder.” The responsible gaming tool will be a part of the Responsible Gaming Center, which is integrated into the betting operator’s site and apps.
Kris Gilman, the Director of the DCP Gaming Division, addressed how gambling operators offer bonuses to customers. Saying, “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.”
DraftKings has also been instructed to invest $50,000 for the exclusive purpose of consumer complaint resolution programs, consumer education, consumer protection enforcement, and litigation. Those affected by this particular bonus advertisement will be contacted within sixty days of the release from the DCP (July 10).
“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, concluded DCP Commissioner Bryan T. Cafferelli on the win for the regulator.
ReadWrite has reached out to DraftKings for comment.
Featured image: Pixlr-AI generated.
