DraftKings to Refund $3M to Connecticut Customers in Promotion Settlement

players who participated in certain bonus offers that promised a deposit match or deposit bonus promoted by DraftKings between Oct. 19, 2021, and Jan. 4, 2023, are entitled to compensation.

Ziv Chen

Last Updated: July 14, 2025 2:08 PM EDT • 2 minute read

DraftKings to Refund $3M to Connecticut Customers in Promotion Settlement — Pictured: In this photo illustration, the DraftKings logo is displayed on a smartphone; the company was ordered to pay Connecticut customers $3 million. Photo by Rafael Henrique/SOPA Images/Sipa USA.

Sportsbook operator DraftKings has been ordered to pay back over $3 million to 7,000 customers following an investigation led by the Connecticut Department of Consumer Protection, which found the operator guilty of violating state gambling laws.

According to a statement released by the Department of Consumer Protection (DCP), players who participated in certain bonus offers that promised a deposit match or deposit bonus promoted by DraftKings between Oct. 19, 2021, and Jan. 4, 2023, are entitled to compensation.

In addition to the payouts, DraftKings must also provide all marketing personnel with annual training on Connecticut sports betting gambling laws, strengthen its promotion of its education hub and gaming tutorials on bonus promotions, and pay $50,000 to be used for consumer programs.

“We are pleased with the outcome of this investigation and that affected consumers will be made whole. Thank you to our Gaming Division team, who work tirelessly on behalf of Connecticut consumers to ensure fairness and safety in our legal gaming marketplace,” said DCP Commissioner Bryan T. Cafferelli.

Legal issues continue

This isn’t the only time DraftKings has been on the wrong end of state gambling laws. Officials from the City of Baltimore announced in April that they had sued DraftKings and the parent company of its sportsbook rival, FanDuel.

The City of Baltimore alleged that DraftKings and FanDuel used misleading promotions to attract online sports bettors. The complaint lodged in the Baltimore City Circuit Court also suggested that the Maryland sports betting operators analyzed data and used it to encourage problem gamblers to continue playing in violation of Baltimore’s Consumer Protection Ordinance.

“These companies are engaging in shady practices, and the people of our city are literally paying the price. DraftKings and FanDuel have specifically targeted our most vulnerable residents -- including those struggling with gambling disorders -- and have caused significant harm as a result. This lawsuit is a critical step to hold them accountable and protect all Baltimoreans,” said Baltimore Mayor Brandon Scott on the complaint.

Meanwhile, DraftKings was recently sued in Iowa after refusing to pay out PGA parlays on the AT&T Pebble Beach Pro-Am tournament. The parlay included picking the competition winner, Wyndham Clark, as well as other finishers.

The Iowa man filing the suit placed $325 in parlays on the competition, which was shortened due to weather. He correctly predicted several bets with high payouts, including a 20-leg parlay that included Clark as the winner of the competition.

Overall, the Iowa man is seeking $14.2 million in winnings.

Revenues rise in Q1 2025

Despite several courtroom struggles for DraftKings, the online gambling operator performed well in Q1 2025, seeing revenues rise by 20% year-on-year. The company collected $1.4 billion in revenue, with $882 million coming from its online sportsbook. DraftKings also decreased its net losses year-on-year in Q1 2025 from $142.6 million to $33.9 million.

Written by:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.