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Klein Moynihan Turco LLP
Klein Moynihan Turco LLP (KMT) maintains an extensive practice, with an international client base, in the rapidly developing fields of Internet, telemarketing and mobile marketing law, sweepstakes and promotions law, gambling, fantasy sports and gaming law, data and consumer privacy law, intellectual property law and general corporate law.
On July 10, 2025, the Connecticut Department of Consumer Protection (“DCP”) announced that it had reached a settlement with DraftKings following a gaming advertising-related investigation.
United States Media, Telecoms, IT, Entertainment
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On July 10, 2025, the Connecticut Department of Consumer Protection (“DCP”) announced that it had reached a settlement with DraftKings following a gaming advertising-related investigation. Without admitting fault, DraftKings agreed to return over $3M to Connecticut consumers who signed up as a result of promotions advertising a “50% Casino Deposit Match” or “Casino Deposit Bonus.”
As our readers are aware, companies engaged in gaming advertising must manage compliance with numerous and differing regulations across state jurisdictions. Those that are unaware of or ignore their compliance obligations risk significant penalties, as evidenced by this settlement.
The Gaming Advertising Complaints
From October 19, 2021 until January 4, 2023, DraftKings offered a “50% Casino Deposit Match.” The DCP alleged that consumers were misled into believing that, immediately after their first deposit, they would be credited with a 50% deposit match that came with no strings attached. Instead, consumers were unable to access the bonus funds until certain criteria, such as a “play-through” or “rollover” requirement, were met. Consequently, the DCP filed several complaints against DraftKings, claiming that it violated various State gaming advertising regulations.
To settle the lawsuits, DraftKings agreed to: 1) return over $3,011,766.77 to 7,075 online casino players; 2) provide annual gaming advertising law compliance training to its marketing and advertising personnel; 3) enhance promotion of its education hub for deposit bonuses; and 4) deposit $50,000 into the DCP’s Enforcement Fund Account for use in consumer complaint resolution programs, consumer education, consumer protection enforcement, and related litigation.
Important Takeaways From the DraftKings Settlement
Although each jurisdiction’s gambling marketing regulations vary, there are still baseline commonalities that apply across the country. One of these commonalities, as explained by DCP Gaming Division Director Kris Gliman, is that “[g]aming 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.” DraftKings is not the only gaming operator accused of running deceptive marketing promotions. Caesars Palace Online Casino was recently named in a lawsuit alleging that it had dishonestly promoted a “100% Deposit Match up to $2,500.” Similar to consumers who signed up for the subject DraftKings promotion, new Caesars customers allegedly did not receive their bonus right away and had to meet large “play-through” requirements.
Exercise Caution When Engaging in Gaming Advertising
With the proliferation of online sports betting across the United States, it can be quite lucrative for companies to advertise on behalf of casino and sports gambling operators. Before initiating any marketing campaigns, however, it is important that marketers understand each jurisdiction’s respective gaming advertising regulations. Many states require that prospective advertisers first acquire licensure before initiating any marketing campaign. Regulations also include significant penalty provisions, and some allow for private rights of action. Accordingly, companies interested in conducting gaming advertising should consult with experienced legal counsel.
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