DraftKings Sportsbook is currently involved in a federal lawsuit from a sports bettor in the state of Michigan. The reason for this lawsuit is an unpaid bet, and the matter could eventually be solved in court.
Ryan Cristman is the man looking to sue DraftKings over a bet he made on the Boston Bruins. Cristman claims to have won over $5,000 with this bet, a total he claims has not been paid.
The lawsuit was filed way back on May 12 and it was filed with the District Court in the Eastern District. At this point in time, DraftKings has not responded in court, and its unclear when the company plans to do so.
DraftKings has responded to Cristman, but it do so in the form of an email from customer support. The sportsbook noted an error in the odds that were posted, and made it clear that it would not be paying out the wager.
DraftKings reportedly froze the account of Cristman as it worked to sort out this issue and offered him a $50 free bet. This was just two days after Cristman had created his account.
Details of the Bet
The bet was placed on February 10 and it was a matchup between the Boston Bruins and New York Rangers. Cristman wagered $915 on the Bruins to cover 3 goals.
This type of bet is not one usually placed on a hockey game and so Cristman called customer support to confirm his wager. They agreed with his bet, and the Bruins went on to win 3-2.
When the bet was placed, the payout that was listed was $5,586. Cristman believed that this money would ultimately show up in his account, but it never came.
DraftKings acknowledged that the odds should have listed -3 goals instead of the +3.
Not a First Lawsuit of This Kind
Even though lawsuits between bettors and sports betting sites don’t happen often, this is not the first time this has happened. In 2016, FanDuel was sued in Massachusetts for allegedly lying about odds for certain games.
That lawsuit ended in a settlement, but the financial terms were not disclosed. DraftKings was actually named in that lawsuit as well as it was alleged that they have similar practices.
Both FanDuel and DraftKings have emerged as market leaders in the US sports betting industry and they have become extremely competitive in Michigan.
Michigan a Booming Market
It has not taken Michigan long to become one of the top sports betting markets in the United States. Sports betting has been offered in the state since March 2020, but online betting launched near the end of January.
There were more than 10 online sports betting sites available on the first day and that number has grown in the following months. This lawsuit is a small stain on the DraftKings name but is not expected to have much of an effect on the industry.
Illinois is still the sports betting leader in the Midwest but Michigan could close the gap over the next few months.