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The Public Health Advocacy Institute (PHAI) and its Center for Public Health Litigation have taken legal action against DraftKings on behalf of Massachusetts citizens. These individuals signed up for the sportsbook’s $1,000 bonus promotion but were misled by its unfair requirements.

In March, DraftKings launched in Massachusetts and quickly became a major player in the state’s sports betting market. In fact, in October alone, DraftKings generated $33.5 million, surpassing FanDuel and BetMGM combined.

The lawsuit focuses on the details of the promotion. Players were required to deposit $5,000 and place $25,000 worth of bets within 90 days to receive the $1,000 bonus. PHAI argues that this structure makes it excessively expensive to obtain the bonus and statistically likely for players to lose money.

PHAI also highlights the addictive nature of gambling, comparing it to alcohol or drug addiction. They argue that marketers of addictive products, like DraftKings, should take extra precautions to minimize addiction risk.

Melissa Scanlon and Shane Harris, two Massachusetts residents, are among the plaintiffs in the lawsuit. PHAI’s Executive Director, Mark Gottlieb, states that they represent the thousands of people who were misled by DraftKings’ unfair requirements. The case, titled Scanlon et al. v. DraftKings, seeks compensation for the promised bonus, as well as additional damages and legal fees.

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