Caesars under scrutiny in new lawsuit targeting ‘risk-free’ betting ads
New York-filed class action takes aim at operator over false and misleading claims in advertising
Caesars has been taken to task in a lawsuit by a New York bettor over the usage of the term ‘risk-free’ in its sportsbook advertising, with allegations of deceptive adverts.
The class-action complaint, filed in the US District Court for the Eastern District of New York by New York resident Lachae Vickers, suggests Caesars has built its business in part by making “untruthful and deceptive” promises in sports betting adverts.
According to the suit, Vickers herself placed a $125 wager after allegedly being lured into believing it was a truly “risk-free” bet, only to lose the entire sum.
The lawsuit highlights the recruitment of new players through the use of promotional incentives, with the claim these adverts lure players into depositing large amounts of money, funds they can quickly lose without any warnings on the risk of financial losses being given.
It alleges violations of both state consumer law and duty of care provisions relating to the treatment of consumers in four areas, including negligent misrepresentation, intentional misrepresentation as well as fraudulent inducement.
“Not only do false promises of “free” or “risk-free” bets lure consumers into opening and using betting accounts, but the false promises can also normalize betting larger amounts than consumers would otherwise wager,” the suit states.
“The calculus for online sportsbooks is simple: incessant broadcast ads and enticing sign-up deals make sense, since on average, a new user will lose several thousand dollars to the sportsbook over the lifetime of each customer they can convince to sign up.
“Glitzy, eye-popping promotions like “free” or “risk-free” bets are a sure-fire method of luring new bettors choosing among myriad online sportsbooks – all of whom generally offer the same technology and the same betting options,” it adds.
Caesars Sportsbook advertisements include partnerships with celebrities including J.B. Smoove, Halle Berry, as well as NFL legends the Manning family.
The suit highlights these practices being used at the likes of Caesars, BetMGM, and Barstool Sports, but also cites other operators, including Betfred, FanDuel, Tipico, and PointsBet as having ceased the practice over responsible gambling concerns.
“At no time in Caesars Sportsbook’s marketing or during Caesars Sportsbook’s signup process were [the] Plaintiff and the Class Members warned of the true financial risks of using the Caesars Sportsbook service for an initial bet – including the immediate and acute risk of losing the entire amount in that initial bet and the risk that losses will never be reimbursed by [the] Defendant,” the lawsuit reads.
The suit asks for damages and injunctive relief over the claims, as well as demanding a trial by jury over the alleged breaches.