DraftKings Accused of Closing Accounts and Keeping Users’ Balances

Case Overview: A class action lawsuit claims DraftKings improperly shuts down user accounts and keeps the remaining balances, violating user agreements.

Consumers Affected: DraftKings users whose accounts were closed and who have been unable to access their funds.

Court: U.S. District Court for the District of Massachusetts

DraftKings, a leader in online sports betting, is facing serious allegations in a lawsuit claiming the company has been improperly shutting down user accounts and keeping the money left behind. 

Texas resident Eric Avila, the lead plaintiff, alleges that DraftKings deactivated his account in August 2024, leaving him unable to access the $100 balance he says rightfully belongs to him.

Users Say Accounts Closed Without Warning

Avila’s lawsuit accuses DraftKings of closing accounts under the pretense of violating terms of service, specifically claiming users had multiple accounts. He says he never violated the terms and was blindsided when his account was deactivated. Attempts to resolve the issue with customer service reportedly left him stuck in what he described as a “catch-22.”

“Users cannot withdraw funds from their DraftKings account because DraftKings has decided the users do not have a DraftKings account,” the lawsuit states. Avila believes this tactic allows DraftKings to keep millions of dollars that should belong to its users.

The complaint highlights how DraftKings users often fund their accounts with deposits from personal bank accounts, winnings, or company-provided incentives. By allegedly deactivating accounts without returning the funds, the lawsuit argues DraftKings is breaching its agreements with users.

DraftKings’ Troubled Legal History

This isn’t the first time DraftKings has faced legal trouble. In May 2024, a lawsuit in New York accused the company of running a deceptive promotion targeting new users. The promotion promised a “risk-free” first bet, but users claimed they were risking their own money despite the marketing language.

Back in December 2023, DraftKings was sued in Massachusetts over a $1,000 sign-up bonus offer. Plaintiffs alleged the promotion was designed to mislead users into betting more than they might have otherwise. That case drew attention because it was reportedly backed by prominent attorney Richard Daynard, known for his work on lawsuits against the tobacco industry.

Earlier, in March 2023, DraftKings faced allegations of securities law violations involving its non-fungible token (NFT) offerings. That lawsuit claimed the company misled investors, resulting in financial losses.

In the DraftKings account closures lawsuit, Avila is looking to represent a nationwide group of users who faced similar issues. The proposed class could include thousands of affected customers, many of whom were reportedly left without answers or access to their money.

The lawsuit, filed in Massachusetts, where DraftKings is headquartered, seeks damages for users and demands that the company implement changes to prevent similar situations from happening in the future.

Case Details

• Lawsuit: Eric Avila v. DraftKings, Inc., et al
• Case Number: 1:24-cv-13165
• Court: U.S. District Court for the District of Massachusetts

Plaintiffs' Attorneys

• Kenneth D. Quat (Quat Law Offices)
• Curtis Waldo and Benjamin Gubernick (Waldo Gubernick Law Advocates, LLP)

Have you had your DraftKings account closed? Share your experience in the comments below.