Caesars Sportsbook Faces Class Action over 'Risk-Free' Bets

In the world of sports betting, the allure of a 'free bet' or a 'risk-free bet' can be a powerful draw for new customers. But what happens when those offers turn out to be not so 'risk-free' after all? This is the question at the heart of a class action lawsuit filed by Jeffrey Jackson, on behalf of himself and others similarly situated, against American Wagering, Inc., doing business as William Hill and Caesars Sportsbook.

Jackson alleges that the 'free bet' and 'risk-free bet' offers promoted by Caesars Sportsbook were misleading and deceptive, not accurately representing the true nature of the bets. The lawsuit claims that the sportsbook failed to disclose the risks associated with the initial bets, leading consumers to believe they would receive a refund if they lost.

The complaint, filed on September 11, 2023, in the United States District Court for the Northern District of New York, states that these marketing representations and omissions violated state consumer protection laws and the duty of care owed to consumers. Specifically, the lawsuit cites violations of N.Y. Gen. Bus. Law §§ 349 & 350, which prohibit deceptive acts or practices and false advertising in the conduct of any business, trade, or commerce.

Jackson's experience, as detailed in the complaint, paints a picture of a consumer drawn in by the promise of a 'risk-free' bet. He signed up for the promotion, placed his bet, and lost. Expecting a refund as per the advertised offer, Jackson was surprised when no such refund materialized. This, the lawsuit alleges, is a clear example of intentional misrepresentation and fraudulent inducement.

The lawsuit also alleges that Caesars Sportsbook unjustly enriched itself at the expense of Jackson and others in the class. The concept of unjust enrichment, a quasi-contractual remedy, is invoked when one party benefits at the expense of another in circumstances that the law sees as unjust.

The lawsuit seeks actual damages, punitive damages, restitution, and an injunction to prevent Caesars Sportsbook from continuing these alleged deceptive practices. The class is defined as all persons nationwide who signed up for a 'free bet,' 'risk-free' bet, or similar promotion with the defendant and lost any portion of their first bet. There is also a subclass of all New York persons who did the same.

The case against Caesars Sportsbook raises important questions about the responsibilities of businesses in their marketing practices. It underscores the importance of clear, accurate advertising, and the potential consequences when consumers feel they have been misled. As the lawsuit progresses, it will be interesting to see how the courts interpret and apply the laws at issue in this case.