The Connecticut Department of Consumer Protection announced Thursday a settlement with DraftKings CT.
The gambling platform allegedly violated state marketing and advertising rules.
According to Connecticut, DraftKings did not have terms and conditions that informed users about so-called playthrough or wagering requirements for claiming promotional funds.
DraftKings, which offers mobile sports betting and online casino games in the state, agreed to return more than $3 million to more than 7,000 Connecticut consumers who participated in certain bonus offers.
The promos in question were so-called “deposit match” or “deposit bonus” offers made between Oct. 19, 2021 and Jan. 4, 2023.
In the settlement, DraftKings did not admit to wrongdoing.
The regulatory action was the second major issue for DraftKings in Connecticut. In 2024, the state fined the online casino over a slot game glitch.
Online Gambling Addiction Risks
Playthrough/wagering requirements tied to promotions are common in the online betting industry.
A user essentially has to gamble a large multiple of their deposit to “unlock” the bonus. Unlocking the bonus makes the money withdrawable.
Depending on the size of the player’s deposit, playthrough requirements can encourage dangerous gambling levels.
A user might suffer significant losses trying to realize the full value of a gambling promotion.
Problem sports gambling rates are high in the U.S., and industry advertising is partly to blame.
Earlier this year, a prominent survey found that over 50% of online sports bettors have chased a bet.
A Connecticut gambling study in 2024 found that more than half of sports betting revenue comes from people with severe gambling addiction.
“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,” Connecticut DCP Gaming Division Director Kris Gilman said in a statement.
“We are happy that DraftKings has agreed to assess its promotions, provide additional training to its employees regarding Connecticut’s laws and regulations, and return funds to consumers who misunderstood and in many cases were completely unaware of the terms of the promotions they participated in.”
Other Terms of DraftKings CT Settlement
DraftKings also agreed to other items in resolving the Connecticut dispute.
The Massachusetts-based gambling company must provide annual training on Connecticut’s relevant laws to its employees.
DraftKings must also provide “enhanced promotion” of its “education hub” and game tutorials for bonus promotions.
The company must also adhere to stricter marketing rules around so-called “free bets.”
In addition to the $3 million, DraftKings must pay $50,000 to the state for use in “consumer complaint resolution programs, consumer education, consumer protection enforcement and litigation.”
Affected consumers entitled to part of the $3 million refund should receive communication from DraftKings CT within 60 days, the state said.
The Big Picture
The settlement doesn’t change the nature of the online betting industry in Connecticut.
Problem gambling rates will remain concerning, with a small minority of players accounting for the lion’s share of operator revenue.
Greater transparency around promotions is a good thing, but for a great many users it’s not going to significantly reduce the chances of developing a betting problem.
For people dealing with problem gambling or in recovery, the Connecticut settlement could be too little, too late.
The social cost of Connecticut’s online gambling industry has fueled efforts from U.S. Sen. Richard Blumenthal (D-CT) to seek federal intervention in the form of the SAFE Bet Act.
Related DraftKings Coverage
Inside Baltimore’s Sports Betting Lawsuit Against DraftKings, FanDuel
DraftKings Fined In Michigan For Not Processing Player Withdrawal Request
CT Falters In Becoming Eighth State To Ban Credit Cards For Sports Betting
DraftKings Pennsylvania Lawsuit Alleges Addiction Harm To Users
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