No More 'Risk Free' Bets at DraftKings, FanDuel, AGA Finally Acts After Class Action Suit

Submitted by Nagesh Rath on

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Nagesh Rath

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These so-called "Risk Free" bets will soon be a thing of the past as regulators begin cracking down on this type of promotion.  The pressure is also coming from the leagues. 

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“We believe it’s a problematic term from a responsible gaming and a problem gaming standpoint,” Scott Kaufman-Ross, the NBA senior vice president who heads gaming and new business ventures, told the Sports Betting Journal last month. “It’s important that we be clear with our fans that sports betting carries inherent risk. The notion that anything in this area is risk-free runs counter to the key messaging and education around sports betting. We just feel it’s the right move for us.”

With the close of March Madness (how appropriate), the American Gaming Association has decided to enforce the "no-no" advertising policy.

The AGA also decided they had had enough of those ridiculous university partnership deals with sportsbooks.  As if that wasn't going to be an issue pretty much the day the agreements were signed.

“It has always been important that we get sports betting right,” said Bill Miller, the association’s president and CEO. “It’s always been our No. 1 interest in creating a high bar for responsible advertising and protecting consumers.”

Bring on the laugh track.

Those deals can go on until July 1.  But members of the American Gaming Association must abide by this policy.

Last week, PointsBet sort of ended their college deals.  It was announced last week that the University of Colorado Boulder will no longer be partnering with the Australian sports betting firm.

That university's deal, entered into in 2020,  included a $30 referral bonus every time someone signed up on PointsBet with the university’s promo code and placed a bet. 

“PointsBet and the University of Colorado have decided it is mutually beneficial to end their partnership at this time. Both parties are thankful for the joint efforts throughout the relationship and wish the best for each organization going forward,” PointsBet issued in a statement this week.

Pointsbet is yet to end its deal with the University of Maryland, though that could be coming any day now we suspect.

As for those "risk free" bets, don't be surprised if affiliates keep promoting those on Google News.  And don't think for a second that the AGA is doing all of this to be proactive or had some type of moral epiphany.   There is, as always, a method to this madness.

The regulated US sports betting industry is in hot water courtesy of a class action suit against Caesars. That suit alleges customers were lured in by falsely promising the so-called “free” and “risk-free” initial bets that were anything but.  The plaintiff named is one Cassandra Geske.

“But these promises are far from the truth: the bet is not in any respect ‘free’ or without risk,” the Caesars Sportsbook class action lawsuit alleges.

If you've grown tired of all those sportsbook and Camp Lejeune water contamination class action suit commercials, something tells us we could start seeing ads for those looking to join in on the Caesars class action case.

Geske claims that, after depositing and wagering $5 in cash, she lost her bet but was not reimbursed for the $5 she wagered.

The Caesars Sportsbook class action lawsuit was filed in Illinois federal court.

The lawsuit asserts claims for violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, negligent misrepresentation, intentional misrepresentation, fraudulent inducement, and unjust enrichment.

- Nagesh Rath, Gambling911.com

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