Class Action Alleges DraftKings Has Incorrectly Marked Winning Bets as Losses, Depriving Winners of Payouts

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A Michigan resident alleges in a proposed class action that DraftKings has systemically failed to pay out on winning wagers.

The 16-page lawsuit claims more specifically that the popular online sports betting platform, in an apparent “unilateral and unjustified breach of contract,” has failed to honor customers’ winning wagers by incorrectly marking the bets as losses, which as a result has prevented the receipt of payouts to which proposed class members are entitled.

Central to the lawsuit is a hockey-specific bet called the puck line, which is based on a goal spread. Under a puck line bet, the case says, a team can be given either a positive (+) or negative (-) number of goals. Per the example in the lawsuit, a puck line bet hinges on how many goals a game is won or lost by:

“For example, if Detroit is playing and they are given +1.5 goals at odds of -110, Detroit bettors will win their wager if Detroit wins the game or loses by one goal. In the alternative, if Detroit was given -1.5 goals and odds of -110, Detroit bettors will only win their wager if Detroit wins by more than one goal.”

The plaintiff alleges, however, that DraftKings “refuses” to pay out on winning wagers. 

According to the lawsuit, the plaintiff, who placed his first bet with the defendant on February 8, 2021, wagered on a puck line on February 10 for a game between the Boston Bruins and New York Rangers, for which the Bruins were “given +3 goals in regular time with odds of +510.” The lawsuit says the plaintiff wagered $915.89 and would have received nearly $5,600 if the bet were successful.

“Indeed, Plaintiff relied on DraftKings’ representations about the odds offered and the payout he would receive if he won the Bet,” the case reads.

Shortly after the bet was placed but prior to the start of the game, the plaintiff contacted the defendant’s customer support to confirm that he was given the correct odds, the lawsuit continues. Per the suit, a DraftKings agent told the plaintiff that the odds were correct, wished him luck and said they were “hoping to see you win.” During the game, however, the plaintiff again reached out to DraftKings’ customer support, this time after noticing that his bet receipt incorrectly showed his wager as -3 for the Bruins, rather than +3, the lawsuit claims. 

According to the suit, DraftKings, despite answering the plaintiff within minutes of his initial message, left his second message “unanswered for hours, until after the Game had concluded.”

“The Game ended regular time with a score of 2-2,” the complaint says. “Meaning, Plaintiff had won his Bet as Boston did not lose by more than three goals.” 

Upon logging onto the DraftKings app to view and withdraw his apparent winnings, the plaintiff came to learn his bet was marked as a loss, the case says. After contacting the defendant yet again, the plaintiff was told that his bet would stand as a loss, and that the terms of the bet were displayed correctly prior to the placement of the wager, the suit says. 

According to the complaint, the plaintiff’s account was locked “in retaliation” shortly thereafter, leaving him unable to access the funds therein. 

The suit, filed on May 12 in Michigan’s Eastern District Court, looks to represent all persons in the United States who placed a winning wager on DraftKings’ Sportsbook that DraftKings incorrectly declared as a loss. 

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