The NFT Settlement
DraftKings agreed to a $10 million settlement to resolve a class action alleging that the NFTs it sold through its “DK Marketplace” were, in effect, unregistered securities, and that the marketplace itself operated as an unregistered securities exchange. DraftKings shut the NFT marketplace down in 2024, and the settlement received preliminary approval in early 2025.
Whether crypto-style NFTs sold with promises of value count as securities is an unsettled, hotly litigated question; this settlement resolves it only for these plaintiffs.
The Betting-Promo Claim
Separately, a consumer sued over DraftKings’ “$1,000 bonus bet” promotion, alleging the advertising implied an easy bonus that was in fact nearly impossible to get. A federal judge dismissed that case, ruling the offer’s terms and conditions clearly explained the wagering requirements to qualify — so the promo was not misleading as a matter of law.
The contrast is instructive: the NFT theory produced a settlement, while the bonus-bet theory failed because the fine print disclosed the conditions.
What Bettors Should Know
Sportsbook “bonus” and “risk-free” offers almost always carry playthrough and eligibility conditions in the terms; read them before depositing, because courts have treated clearly disclosed conditions as fair. And treat NFT or “marketplace” features as speculative, not investments.
Before You Act
Thinking About Filing a Claim?
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DraftKings Lawsuit: The NFT Settlement and Betting-Promo Claims: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What is the DraftKings NFT lawsuit?
A class action alleged DraftKings' NFTs were unregistered securities and its DK Marketplace an unregistered exchange. DraftKings agreed to a $10 million settlement, preliminarily approved in early 2025, and closed the marketplace in 2024.
Did DraftKings lose the bonus-bet lawsuit?
No. A judge dismissed the suit over the '$1,000 bonus bet' promotion, finding the terms clearly explained the wagering requirements, so the offer was not misleading.
Are sportsbook bonuses misleading?
Courts have treated clearly disclosed bonus conditions as fair. Read the playthrough and eligibility terms before depositing; the 'bonus' usually requires significant wagering.
Legal Disclaimer
This article is general legal information, not legal advice, and does not create an attorney-client relationship. Case status, eligibility criteria, and any amounts described are as reported at the date shown and may change. Consult a licensed attorney in your jurisdiction about your own situation.