DraftKings Sued Over ‘Risk-Free’ Bets That Were Anything But

DraftKings Inc. was hit with a class-action lawsuit accusing the sports betting website of misleading new users into believing their first wager would be risk free.

Advertisements promised DraftKings customers that if they lost their “risk-free bet,” instead of having to pay up, they’d be credited with a “free bet.” But customers who won with this credit were paid less than half what they’d have made placing the same wager with cash, according to the lawsuit filed Wednesday in New York federal court.

“The difference renders the supposed ‘risk-free’ promotion anything but risk free,” according to the complaint.

A representative ...