Class Action Lawsuit Filed against DraftKings over ‘Unfair’ Account Closures and Funds Withholding
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DraftKings Inc., a leading name in online sports betting, now faces significant legal controversy following a class action lawsuit filed on December 23, 2024. A Texas resident, Eric Avila, filed the lawsuit, accusing the company of deactivating user accounts in an unfair manner and holding the funds within those accounts. The case puts a face to the thousands of users that Avila says were impacted by this problem.DraftKings Sued Over Account Closures | SpicyCasinos - Hottest Bonuses 2025
Complaints of Unfair Dealing
Avila’s complaint arises from the deactivation of his DraftKings account in August 2024, which he claimed had a balance of $100. According to DraftKings, Avila breached its terms of service for allegedly opening multiple accounts in breach of the platform’s policies. Avila has denied these allegations, contending that the accusations were baseless and resulted in his inability to access his funds.
The complaint explains that DraftKings has placed these users in a difficult financial situation. Many rely on their accounts to store funds from bank deposits, betting winnings, or promotional bonuses, which they frequently use for ongoing wagers.
The lawsuit describes the situation as a “catch-22” in which “users cannot withdraw funds from their DraftKings account because DraftKings has decided the users do not have a DraftKings account.” Avila alleges this practice is a breach of contract and that the company has violated Texas consumer protection laws.
Class Action Seeks Accountability
Avila leads a group of individuals in similar situations, potentially totaling thousands of affected users. The class action is captioned Avila v. DraftKings, Inc., D. Mass., No. 1:24-cv-13165, seeking to hold the company responsible for these practices and recover funds withheld from the users.
The company’s terms of service require resolving any disputes in its home state of Massachusetts. Avila has hired high-profile firms Quat Law Offices and Waldo Gubernick Law Advocates LLP, both consumer protection powerhouses, to take on the case.
DraftKings’ Silence
DraftKings has not responded to the allegations so far, but the lawsuit has shed light on growing concerns about transparency and consumer protection within the online betting industry. Critics argue that account closures and frozen funds highlight inadequate regulation in resolving user disputes on online betting platforms.
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