DraftKings faces a potential class-action lawsuit over account closures

DraftKings has been hit with another class-action lawsuit filed on behalf of a Texas resident by Quat Law Offices and Waldo Gubernick Law Advocates LLP with the US District Court for the District of Massachusetts, alleging illegal misappropriation of player funds and unlawful account closure.

DraftKings accused of Catch-22 practices regarding account closures

The lawsuit argued that DraftKings closed user accounts without providing sufficient details about what triggered the action and subsequently refused to release user funds, citing the account suspensions. The complaint specifies:

"Users cannot withdraw funds from their DraftKings account because DraftKings has decided the users do not have a DraftKings account."

This created a Catch-22 situation, where users were unable to resolve the issue due to insurmountable bureaucratic hurdles, as described by Joseph Heller in his eponymous novel.

Texas resident Eric Avila however believes that this is wrong and has moved to file the lawsuit over DraftKings’ decision to first close his account, and then withhold the $100 balance that was available on the account.

Avila further argues that DraftKings terminated his account "under misleading assertions" that he had somehow violated the company’s terms and conditions, which he flatly denies.

Avila, though, believes and insists in his complaint that DraftKings has been able to retain millions of dollars that rightfully belong to users whose accounts have been shuttered without an explanation other than an accusation of the users breaching certain unknown aspects of the company’s terms and conditions.

Avila is hoping to garner more support for the legal action against DraftKings, hoping to call on hundreds of other individuals who would be interested in taking up the fight against the sportsbook over the same issues.

DraftKings accused of violating Texas consumer protection law

DraftKings for its part only ever closes user accounts for specific offenses, such as multiple account registrations. The company has offered no comment on why Avila’s account was closed and has not publicly commented on the new legal action brought against it.

Avila also insists that by refusing users their funds, it has violated Texas consumer protectionlaw, although the case has been filed in Massachusetts and the complaint wants it to be reviewed under Bay State laws.

Earlier this week, DraftKings settled another legal feud with a former executive who had been accused of stealing the company’s VIP customers to rival Fanatics Betting & Gaming.

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