Fines, settlements & “free” bets
They market “free bets” and “no sweat.” Regulators keep fining them for it. Here’s the paper trail — the regulator’s own documents, linked.
The record
| Book | Regulator | Amount | What for (per the document) | Doc |
|---|---|---|---|---|
| DraftKings | Ohio Casino Control Commission, Feb 2023 | $500,000 | $350K over ~2,582 promotional mailers offering “$200 in free bets” sent to people under 21; $150K over “free” promotions that required the bettor to risk money, and unclear responsible-gambling messaging. Settlement; no findings made. | [src] |
| Caesars | Ohio, Jan 2023 | $150,000 | Advertising violations (“free”/“risk-free” type promotions) | [src] |
| BetMGM | Ohio, Mar 2023 | $150,000 | Advertising violations (same category) | [src] |
| DraftKings | Massachusetts Gaming Commission, July 2025 | $450,000 | Let customers bet with credit-card money — illegal in Massachusetts: 1,160 wagers, 242 credit-card deposits, 218 customers, $83,667.92 handle. Ordered to refund. | [src] |
| BetMGM, FanDuel, Fanatics, Caesars, DraftKings, Penn, Bally’s | Massachusetts, 2025–26 | $5,000–$60,000 each | Repeated “catalog noncompliance” (offering wagers outside the regulator-approved event catalog), plus advertising and identity-verification (KBA) violations. BetMGM: $60,000 (Dec 2025). | [src] |
| DraftKings | New Jersey DGE, Nov 2025 | $32,500 | Failed to prevent accepting wagers on prohibited events, on a market listing the wrong participant, and past-posted wagers (bets taken after the outcome was known). | [src] |
| BetMGM | New Jersey DGE, 2026 | $200,000 | Settlement of “various violations of the Sports Wagering Act” (Dkt 23-1682-VC) and later similar violations. | [src] |
| DraftKings | Connecticut DCP, July 2025 | $3M+ returned, $50K paid | Deposit-match/bonus offers (Oct 2021 – Jan 2023); ~7,000 Connecticut customers. DraftKings denied wrongdoing. | [src] |
Notice the sizes. DraftKings spent $1,124.8 million on advertising in 2025 ([src]; $1,049.6M in 2024, $984.4M in 2023). Its biggest single fine on this page is $500,000 — about four hours of its 2025 ad budget.
In court: “free money” that wasn’t (alleged)
Youngs v. DraftKings, Inc., No. 2:25-cv-00179 (D.N.J., filed Jan 7, 2025), proposed class action. The complaint alleges that DraftKings “advertises an all-upside gambling experience, falsely promising new users that they will get free money which they can wager without any risk,” when the terms required users to “deposit and gamble almost exclusively with their own money,” and targets its “Risk-Free Bet”/“No Sweat First Bet” promotions. [src] These are allegations in a complaint, not findings.
How “free” bets really work
- “Bet $5, get $200 in bonus bets” — bonus bets aren’t cash. Most books pay you only the winnings, not the stake back. A $200 bonus bet on a +100 line returns $200 if it wins, nothing if it loses: worth about $95 in expected cash, not $200.
- “No sweat” / “second chance” — you risk real money; if you lose, you get bonus bets, not your cash.
- Deposit match — the match usually carries playthrough requirements. Connecticut made DraftKings hand back $3M over how its offers worked. [src]
- Read the terms. Ohio’s regulator literally fined three books for calling things “free” that weren’t. [src]
Sources
- Ohio Casino Control Commission, DraftKings settlement agreement (Feb 15, 2023)
- Ohio Casino Control Commission, settlements page
- PlayOhio fines tracker (Caesars $150K, Jan 2023)
- Covers: Ohio fines BetMGM $150K (March 2023)
- Massachusetts Gaming Commission decision, DraftKings credit-card noncompliance (July 2025)
- MGC Noncompliance Enforcement Actions table
- NJ DGE Order No. 2888, DraftKings ($32,500), Nov 2025
- NJ DGE order adopting BetMGM settlement ($200,000), Dkt 23-1682-VC
- Connecticut Dept. of Consumer Protection, DraftKings $3M settlement (July 10, 2025)
- DraftKings Inc. Form 10-K for FY2025 (SEC EDGAR)
- Youngs v. DraftKings, Inc., No. 2:25-cv-00179 (D.N.J.), class action complaint filed Jan 7, 2025