Massachusetts court lets DraftKings bonus lawsuit proceed
Table of contents
- A Massachusetts Superior Court judge denied most of DraftKings’ motion for summary judgment on February 17, allowing misrepresentation and false advertising claims to proceed.
- The lawsuit, filed in December 2023 by the Public Health Advocacy Institute, centres on a “$1,000 deposit bonus” promotion that required new users to deposit $5,000 and wager $25,000 to qualify.
- The case must still clear class certification before a full trial, a process that could take over a year.
A Massachusetts class action lawsuit against DraftKings has cleared a major legal hurdle after a state judge refused to dismiss the central claims of misrepresentation and false advertising.
Superior Court Judge Debra A. Squires-Lee issued the order in February 2026, denying most of DraftKings’ motion for summary judgment and allowing the case to move into the next phase of proceedings.
The lawsuit was filed in December 2023 by the Public Health Advocacy Institute (PHAI) on behalf of lead plaintiffs Melissa Scanlon and Shane Harris. Both made deposits on the Massachusetts sports betting platform shortly after it launched in March 2023.
The promotion, center of the dispute
The contested promotion promised new users a “$1,000 deposit bonus.” To qualify, however, customers needed to deposit a minimum of $5,000 and wager at least $25,000 within a set period. The bonus itself was issued as non-withdrawable site credit, not cash.
Both plaintiffs allege they were not adequately informed of these conditions. Both did not receive the bonus and allege they would not have participated if the terms had been made clear from the outset.
In seeking dismissal, DraftKings submitted promotional visuals showing how the terms were displayed to users. The court noted that those materials were recreated through test accounts rather than drawn from records of what the plaintiffs actually viewed.
Judge Squires-Lee found that the inconsistencies in the submitted evidence created factual disputes appropriate for a jury, not for summary judgment.
The court sided with DraftKings on two narrow points. Certain ancillary claims were dismissed. A request for prospective injunctive relief was also rejected, as DraftKings had already discontinued the deposit bonus promotion in 2023.
What comes next
The case must now proceed through class certification before any trial can take place.
Certification requires plaintiffs to demonstrate that a sufficient number of Massachusetts customers were similarly misled by the promotion. If granted, the discovery phase will follow, a process that typically spans more than a year.
DraftKings has faced similar class action suits over bonus promotions across multiple US states, including Pennsylvania, New Jersey, and others. A federal judge in New York dismissed a comparable claim in late 2025, ruling that DraftKings provided an adequate opportunity for users to read the relevant terms.
The Massachusetts ruling takes a different view, finding that reconstructed evidence is insufficient to defeat the allegations at this stage.
The outcome of this case could have broader consequences for how sportsbook promotions are designed and disclosed across regulated US markets. Several states are actively reviewing advertising standards for licensed operators, and a trial-level verdict in Massachusetts would likely accelerate that scrutiny.
DraftKings has not publicly responded to the latest ruling. The company previously ended the “$1,000 deposit bonus” promotion in the same year the lawsuit was filed.
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