DraftKings Lawsuit Alleges Canceled Winning Bets for Oct. 2023 Lakers-Nuggets Game Should Have Been Paid

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DraftKings faces a proposed class action lawsuit that alleges the sports betting platform wrongfully canceled certain winning bets placed for an October 2023 NBA game, and instead should have paid out the wagers to Indiana bettors.

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The 23-page DraftKings lawsuit says the platform canceled certain bets it had accepted for the October 24, 2023 NBA game between the Los Angeles Lakers and Denver Nuggets, purportedly due to an “obvious error.” The plaintiff, an Indiana resident, alleges the winning Lakers-Nuggets bets were not timely canceled and instead should have been paid by DraftKings.

In particular, the plaintiff states that he placed on October 24 of last year a $100 seven-leg same game parlay with DraftKings, which accepted the man’s bet. The seven legs of the parlay relied on seven different players—Michael Porter Jr., Anthony Davis, Austin Reaves, D’Angelo Russell, Jamal Murry, LeBron James and Nikola Jokic—scoring more than a certain number of points each, the filing says. 

If all the legs of the plaintiff’s parlay hit, his bet was to pay $150,000, according to the proposed class action.

However, according to DraftKings, “the points on each leg were erroneously low for a full game market,” and the platform allegedly learned of the “error” prior to the beginning of the Lakers-Nuggets game at issue, the complaint relays.

According to the suit, DraftKings could have, but did not, cancel the plaintiff’s bet prior to the start of the game, and similarly could have, but did not, cancel the bet prior to when it became apparent that each leg of the plaintiff’s parlay had hit.

“All the legs hit, and the Bet was a winning bet,” the case asserts. “DraftKings canceled the Bet the next day. DraftKings did not pay the Bet.”

The plaintiff accuses DraftKings of having violated the Indiana Deceptive Consumer Sales Act by canceling the plaintiff’s bet, failing to pay the bet, failing to pay the bet within the time period required by state law, canceling the bet after the start of the game, canceling the bet after it became apparent that it was a winning bet, and “[h]aving a practice of waiting to see if a bet won or lost before canceling a bet.”

The DraftKings class action lawsuit looks to cover all persons in Indiana who placed a winning bet on the October 24, 2023 Lakers-Nuggets basketball game that was subsequently canceled by DraftKings for a purported obvious error.

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