DraftKings Sued Over Its 'Deceptive' $1,000 Bonus Bet Offer.

DraftKings Inc. is facing a class-action lawsuit alleging that its advertising for a $1,000 bonus bet offer is deceptive and unfair due to the difficult terms to qualify. The suit, filed by the Public Health Advocacy Institute on behalf of two Massachusetts residents, claims that DraftKings designed the promotion to mislead new customers into thinking they would receive a $1,000 bonus after depositing money into their account. To obtain the full amount, customers must deposit $5,000 and wager $25,000 within 90 days. The bonuses cannot be redeemed for cash or transferred. The nonprofit institute, known for litigation against addictive products, argues that marketers of addictive products should take precautions to minimize the risk. Bonus bets for new users have become common in the expanding sports wagering industry, with 37 states now offering it. DraftKings has been offering the $1,000 bonus in 22 states as part of a promotion running from July 1 to Dec. 31. The company's shares have seen significant growth this year as it gained new customers and reduced losses. [Extracted from the article]