DraftKings in the crosshairs
The Boston law professor who reached a $206bn settlement with big tobacco in the 1980s, Richard Daynard, has turned his sights on the gambling industry.
Northeastern University Distinguished Professor of Law Daynard, 80, is also President of the Public Health Advocacy Institute (PHAI), which on Friday filed a class action lawsuit against DraftKings in Massachusetts’ Middlesex Superior Court.
a “misleading and deceptive” $1,000 sportsbook promotion
The suit, filed on behalf of state resident bettors Melissa Scanlon and Shane Harris, accuses DraftKings of running a “misleading and deceptive” $1,000 sportsbook promotion in March.
Daynard, who helped uncover the fact that tobacco firms knew about the cancer risks of cigarettes, is taking a similar tack with DraftKings. According to Legal Sports Report, the professor is arguing that the Boston firm used the promo to induce bettors to use “a known addictive product.”
Daynard takes aim
The claimants in the suit say they opened accounts with DraftKings in the hope of benefiting from the $1,000 sign-up bonus. The suit claims the term indicating bettors had to make “an initial deposit of $5,000 and place high-risk bets totaling $25,000 over 90 days” to get the bonus was hidden in the fine print.
The case the PHAI is making is that the misleading offer required the claimants to deposit and bet large amounts of money in a promotion strategically created by DraftKings to allegedly induce repeated exposure to an addiction-forming product.
Central to the PHAI suit is its claim that “gambling products are not typical consumer products.” It goes on to state gambling is as similarly addictive as tobacco and heroin, quoting both the World Health Organization and the American Psychiatric Association.
Gambling is the one that leads to the greatest number of suicide attempts”
While he acknowledges DraftKings isn’t the worst or only betting firm to run such promotions, Daynard nevertheless regards online gambling as another impending crisis for society. He told The Boston Globe that of all the addictive products: “Gambling is the one that leads to the greatest number of suicide attempts […] people losing jobs, stealing.”
DraftKings braces itself
An emailed statement from DraftKings shared by the Globe claimed the PHAI “ignored our multiple attempts to engage in an in-person dialogue.” DraftKings added it intends to “vigorously” defend itself against the lawsuit.
Alarm bells may be ringing at DraftKings, however, after comments from a Kansas City lawyer who represented tobacco firms. David Woods of Hughes Hubbard & Reed LLP said the combination of Daynard’s PHAI and the addiction angle “could indicate a new wave of lawsuits similar to those brought against tobacco companies.”