DraftKings to pay $3 million in refunds to Connecticut customers over bonus settlement

DraftKings will refund $3 million to about 7,000 customers in Connecticut following a state investigation into violations of gaming laws concerning marketing and advertising. 

The Connecticut Department of Consumer Protection (DCP) found that between October 2021 and January 2023, DraftKings violated state gaming laws by advertising deposit matches and bonus bets without clearly stating that customers had to meet complex playthrough requirements to receive the full benefit.

Although DraftKings denied all allegations and any wrongdoing, it agreed to the financial restitution and to modify its marketing practices to avoid further legal consequences.

Under the terms of the agreement, DraftKings is now prohibited from advertising or promoting online casino bonuses that require customers to wager their deposit and bonus more than once unless that condition is clearly disclosed. The company must also specify whether bonus payouts are issued in U.S. dollars or in its proprietary virtual currency.

“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,” DCP Gaming Division Director Kris Gilman said in a statement.

DraftKings has agreed to review its promotional practices, provide additional training to employees on Connecticut gaming laws, and refund customers who misunderstood or were unaware of the terms of certain promotions.

“DraftKings is committed to operating in compliance with all regulatory requirements,” a DraftKings spokesperson told SBC Americas. “We value our relationship with the Connecticut Department of Consumer Protection and will continue to work collaboratively with them.”

Affected customers in Connecticut will receive their refunds within 60 business days of the settlement’s finalization. DraftKings is also required to contact any eligible customer who has not claimed their refund within 180 days.

DraftKings will spend an additional $50,000 on consumer education and complaint programs in Connecticut and provide its staff with annual training on legal advertising practices.


This is not the only legal issue DraftKings has faced over its bonus offers. In Pennsylvania, five customers filed a lawsuit earlier this year over a 2023 promotion that required players to play through both the deposit amount and the bonus ten times each to maximize the full value of a $2,000 deposit match bonus. The lawsuit claims DraftKings misled users with complex and unclear terms.

A similar case in Massachusetts is heading to trial.