DraftKings’ Stock In Focus As PHAI’s Lawsuit Will Proceed To Trial

The class action challenges DraftKings' advertised "$1,000 Deposit Bonus" promotion for new sportsbook customers in Massachusetts.

• The DraftKings class action lawsuit was originally filed in April 2024.
• DraftKings asked the court to rule in its favor by submitting graphic depictions of how it contended that it disclosed the terms and conditions of the promotion to the plaintiffs, according to the PHAI. 
• Ruling denying the bulk of DraftKings' motion for Summary Judgement marks the first false advertising lawsuit against DraftKings Sportsbook to survive this stage.

The Public Health Advocacy Institute (PHAI) on Tuesday announced that its class action lawsuit against DraftKings will proceed toward class certification, class-wide discovery, and trial after a Massachusetts Superior Court judge rejected most of DraftKings' Motion for Summary Judgment.

The class action challenges DraftKings' advertised "$1,000 Deposit Bonus" promotion for new sportsbook customers in Massachusetts.

Ruling denying the bulk of DraftKings' motion for Summary Judgment marks the first false advertising lawsuit against DraftKings Sportsbook to survive this stage, clearing the way for class certification and trial, the institute said in its statement. 

Details

The DraftKings class action lawsuit was originally filed in April 2024 by Melissa Scanlon and Sean Harris who contended that DraftKings failed to adequately disclose terms and conditions to obtain the advertised bonus.

DraftKings asked the court to rule in its favor by submitting graphic depictions of how it contended that it disclosed the terms and conditions of the promotion to the plaintiffs, according to the PHAI. 

Sports Betting 

The lawsuit comes at a time when DraftKings has grown to be a major player among sports betting websites in the U.S. The firm is now expanding its reach to global markets. 

The company launched its online sportsbook in Puerto Rico, further expanding DraftKings reach to more users. “DraftKings’ online sportsbook will be available to Puerto Rico residents beginning February 23, 2026, following the recent opening of the DraftKings retail sportsbook at Foxwoods El San Juan Casino in November,” it said. 

Since 2013, the American Psychiatric Association has classified Gambling Disorder in the same diagnostic category as substance-related addictions, including cocaine, opioids, tobacco, alcohol, and heroin, reflecting the well-established public health risks associated with gambling-related harm.

How Did Stocktwits Users React?

Retail sentiment around DKNG trended in ‘bearish’ territory amid ‘extremely low’ message volume. 

Shares in the company have fallen nearly 52% over the past year.