DraftKings Unable to Stop New Jersey Gamblers’ Fraud Lawsuit

DraftKings Inc. will continue to face claims in a class action suit that the company made fraudulent misrepresentations about gambling services, a federal district court said.

Matthew Youngs and Charles Thompson adequately alleged the company fraudulently and intentionally induced them into entering into gambling promotions that misled them as to the rules, Judge Stanley R. Chesler of the US District Court for the District of New Jersey said in an unpublished Wednesday order partially denying DraftKings’ motion to dismiss.

Youngs initially sued Jan. 7, alleging DraftKings violated New Jersey consumer laws by using deceptive promotions to manipulate gamblers and ...