In a settlement reached last week, DraftKings will pay $8 million to class action plaintiffs that asserted the company didn’t accurately represent the difficulty of its daily fantasy sports (DFS) contests, among other claims.
However, there’s a big sticking point. The bulk of the $8 million being directed to the aggrieved parties — $7.28 million to be precise — won’t be delivered in cash. Rather, it will be allocated in the form of “DK Dollars” — the equivalent of credits on the very website the plaintiffs groused about. The settlement was reached in the US District Court for the District of Massachusetts. DraftKings is based in Boston.
“The settlement provides significant injunctive relief by effectuating changes to DraftKings’ online platform and also provides valuable monetary relief in the form of ‘DK Dollars’ or US dollars to settlement class members who made a first-time deposit into their daily fantasy accounts prior to Jan. 1, 2018, and who are not net lifetime winners on DraftKings,” according to the court document.”