DraftKings 'Misleading' Bonus Tripled Stock Value? Tribal Sports Betting Expansion and More
DraftKings is contending with a class-action lawsuit related to its $1,000 bonus bet offer in Massachusetts that two customers claim was misleading. We look at that news and some other important stories of the day.
Tribal Expansion With Mobile Sports Betting in US as New Rules Coming
MIAMI BEACH, FL (Gambling911.com) - Bureau of Indian Affairs issued new rules (effective Jan. 11) streamlining the "land into trust" process.
Next up - the rules on Class III Tribal State Gaming Compacts, which could permit state-wide mobile gaming from a server on tribal land (if consistent with state law). Final rule currently listed as 2/2024.
Jeff Ifrah of Ifrah Law believes this will have a pretty big impact on sports betting in the U.S.. How much remains to be seen.
"All eyes on the next set of rules on mobile gaming. Stay tuned. #mobilegaming".
We've already got a glimpse of the future here in Florida with the Seminoles exclusively state compact providing them with a monopoly on sports betting in the state. There are legal efforts to upend this arrangement from both competitors and anti-gambling groups but the Seminoles opted to launch their mobile app statewide last week with Hard Rock Bet.
DraftKings Facing Lawsuit Over "Misleading" Bonus Offer
BOSTON, MA (Gambling911.com) - DraftKings is contending with a class-action lawsuit related to its $1,000 bonus bet offer in Massachusetts that two customers claim was misleading.
From BetStocks:
This legal action, filed on behalf of two residents from Massachusetts, alleges that customers were under the impression that they would receive a $1,000 bonus upon making a deposit. However, the reality was that they needed to deposit $5,000 and wager $25,000 within a 90-day period to qualify. Additionally, the bonus would only be paid out in non-withdrawable credit.
The institute argues that DraftKings intentionally used misleading advertising to target new customers who were unfamiliar with the intricacies of sports betting terminology and the fine print.
There is also this:
The $1,000 bonus promotion, which ran from July 1 to December 31, is believed to have played a significant role in the company’s stock value tripling this year.
One observer on the GPWA forum laughed off the allegations.
"That part is a stretch lol. Honestly most promotions suck on any site, when I gamble as player sometimes they turn me off to online gambling because most promotions are so restrictive. I am pretty damn sure that promotion is not a significant factor of the company tripling in value. Will be interesting to see how it plays out."
Another forum member agreed.
"I agree, attributing the company's stock tripling mainly to one promotion does seem like a stretch. There are likely many factors at play in their growth, including expanding legalization, effective marketing beyond this one campaign, name recognition, etc. Still, misleading promotions can erode trust, so it will be interesting to see how DraftKings responds. Do we know if this specific promotion brought in a significant number of new customers versus existing ones? I'd be curious to see if it had an outsized impact on acquisition."
Spanky Calls Out Touts
MIAMI BEACH, FL (Gambling911.com)
Popular pro sports bettor and owner of Spank Odds, Gadoon “Spanky” Kyrollos, didn't mince words when he called out touts last week.
"Touts rely on engagement to make themselves relevant. While the temptation may be great to prove the obvious, it’s best to ignore these sheisters and allow them to naturally fall into obscurity."
One observer tweeted in response:
"True statement, but many have been part of the sports wagering landscape for decades ( I think Donn Wagner has been in the game since the 1960s) and, in my opinion, are worthy of consideration in your Sports Betting HOF."
Touts rely on engagement to make themselves relevant.
— spanky (@spanky) December 8, 2023
While the temptation may be great to prove the obvious, it’s best to ignore these sheisters and allow them to naturally fall into obscurity.
Another wrote:
"As long as gambling has existed there have always been people trying to feed their addiction to it using other people's money. In every form of gambling this exists."
One can always check out the G911 Sports Hub and make educated decisions using the leaderboard and consensus picks. Transparency is the name of the game here. A lot of the information is free, including our picks that have somehow managed to go 7-2 over the last nine.
- Gilbert Horowitz, Gambling911.com
