PHAI Prevails in Motion for Summary Judgment Ruling Against DraftKings

Ruling denying the bulk of DraftKings' Motion for Summary Judgment marks the first false advertising lawsuit against DraftKings Sportsbook to survive this stage, clearing the way for class certification and trial

BOSTON, Feb. 24, 2026 /PRNewswire/ -- The Public Health Advocacy Institute (PHAI) is pleased to announce that its class action lawsuit against DraftKings will proceed toward class certification, class-wide discovery, and trial after a Massachusetts Superior Court judge rejected most of DraftKings' Motion for Summary Judgment. 

In Scanlon et al. v. DraftKings, Inc. (No. 2484CV01099-BLS2), the court's February 17, 2026, Order and Opinion allows claims brought under Massachusetts consumer protection law to move forward. The class action challenges DraftKings' advertised "$1,000 Deposit Bonus" promotion for new sportsbook customers in Massachusetts.

Plaintiffs Melissa Scanlon and Sean Harris represent a class of Massachusetts consumers who contend that DraftKings failed to adequately disclose terms and conditions to obtain the advertised bonus. Consumers were required to deposit an initial $5,000, wager at least $25,000 within 90 days on certain qualifying bets, and—even if those conditions were met—they would receive only non-withdrawable site credits usable solely for more gambling.

DraftKings asked the court to rule in its favor by submitting graphic depictions of how it contended that it disclosed the terms and conditions of the promotion to the plaintiffs. However, the company did not produce any actual records of what was shown to Ms. Scanlon and Mr. Harris, instead submitting what the court described as "recreations produced using either test accounts or graphics software." At least three versions of these "recreations" were submitted to the court, with each iteration correcting errors that were identified in previous versions.

In her decision, Judge Squires-Lee determined that "[t]he foregoing is sufficient to create fact questions for the jury as to whether DraftKings provided Scanlon with reasonable notice terms and conditions, so as to defeat any misleading aspects of the Deposit Bonus advertisements."

PHAI attorney Jacob Wolk said, "We applaud Judge Squires-Lee's denial of summary judgment, including her detailed analysis of the 'recreated' documents offered by DraftKings and her conclusion that such after-the-fact recreations cannot be admitted to dismiss consumers' claims that they were misled by the company's '$1,000 bonus' promotion."

Executive Director Mark Gottlieb added, "The jig is up for DraftKings and its highly deceptive marketing ploy to lure new customers to wager tens of thousands of dollars chasing a bogus bonus. We look forward to conducting wider discovery to better understand how the company planned and executed its plan to hook those new to sports gambling on products that are well-understood to cause addiction."

Since 2013, the American Psychiatric Association has classified Gambling Disorder in the same diagnostic category as substance-related addictions, including cocaine, opioids, tobacco, alcohol, and heroin, reflecting the well-established public health risks associated with gambling-related harm.

Only two smaller elements of DraftKings' Motion for Summary Judgment were granted by the court. One related to alleged misuse of the plaintiffs' personal information, while the second related to going-forward injunctive relief, which was deemed moot since DraftKings discontinued its deposit bonus promotion in 2023, the same year PHAI filed its lawsuit. 

About The Public Health Advocacy Institute

Founded in 1979, the Public Health Advocacy Institute (PHAI) is a nonprofit legal research center focused on public health law located at Northeastern University School of Law. In 2014, PHAI formed the Center for Public Health Litigation, a nonprofit law firm that uses the civil justice system to improve public health by using litigation targeting tobacco industry products, unhealthy foods, deceptive health marketing, and deceptive gambling practices as part of a public health strategy.

To learn more about PHAI, visit phai.org.

Contact:

Public Health Advocacy Institute
267-386-5252
Mark Gottlieb, [email protected] 

or

PRCG | Haggerty LLC
(212) 683-8100
Sandra Prendergast, [email protected]

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SOURCE Public Health Advocacy Institute