Alanna Sadler – Sports betting continues to transform the business of professional and amateur sports. In 2021, sports betting revenue in the United States exceeded four billion U.S. dollars. Today, fans have several ways to bet on sports: apps, in-person sports books, fantasy leagues, and more. Just as professional sports leagues have to prepare for unforeseen events during game-time, companies that offer sports betting opportunities must do the same.
On January 2, 2023, NFL fans eagerly awaited a competitive AFC showdown between the Buffalo Bills and the Cincinnati Bengals. However, shortly after the game began, the world witnessed an unprecedented and horrific in-game injury. With just five minutes and fifty-eight seconds to play in the first quarter, Buffalo Bills safety, Damar Hamlin, suffered cardiac arrest after a routine tackle. Athletic trainers immediately responded to the injury, providing CPR to the twenty-four-year-old athlete for approximately nine minutes. Once resuscitated, Hamlin was taken to the local trauma center where he remained in critical condition for several days.
Players, coaches, staff, and fans watched in horror as the ambulance left Paycor Stadium in Cincinnati. Fearing for Hamlin’s life, the Buffalo Bills organization called for a temporary suspension to deliberate on whether players could mentally resume playing the game. After an hour, the game was postponed indefinitely. Several days later, the NFL announced that the game would not be rescheduled.
As a result, DraftKings, a daily fantasy sports competition and sports betting service, canceled and refunded entries for only some of its NFL fantasy football contests. In response, many joined in a proposed class-action filed in the U.S. District Court for the District of Massachusetts, Turley v. DraftKings Inc. et al., alleging that DraftKings “wrongly paid out on certain NFL contests while refusing to pay out on others.” According to the complaint, DraftKings has rules and regulations for cancelled, postponed, rescheduled games, and suspended or shortened games. However, rules and regulations are contest-dependent. Two contests may be held to alternative standards.
Specifically, DraftKings refunded all entries for “Showdown” and “Flash Draft” contests, but did not do so for other contests, such as the NFL Classic contest. According to the complaint, “the statistics accrued in the Buffalo Bills-Cincinnati Bengals game up to the point at which the NFL suspended the game—and necessarily, the points scored in fantasy football up to that point based on the game—would apply only in those contests DraftKings unilaterally chose.” In other words, DraftKings permitted NFL Contest users to receive credit for points accrued up to the point of suspension, but Showdown and Flash Draft contests were refunded completely.
The plaintiff alleges that DraftKing’s failure to permit accrued points based on statistics from the minutes played in the game was in violation of DraftKing’s terms of service. Additionally, the complaint alleges that this also violated the applicable contest rules, which states that if “the NFL declares a game ‘suspended’ then the statistics generated before the game is suspended will count in Game Sets containing said game.” As a result, users who opted to play in Showdown and Flash Draft contests merely received refunds, while those who opted for other DraftKings fantasy games had the opportunity to gain profits. It is not yet known how many users are included in this class, but it is expected to range from hundreds to thousands. The plaintiff seeks damages in the amount of the difference between entitled winnings and amount paid for entry fees.
As sports fans, we wish for players’ health and safety. However, online sports betting companies must tighten their terms and conditions to reduce the risk of user dissatisfaction. In the case of DraftKings, its minor, yet intricate differences among contest rules resulted in customers’ feelings of confusion and deception.
Luckily, Damar Hamlin made a miraculous recovery. Although his future in football remains uncertain, his resilience continues to inspire those around him. To learn more about player health and safety in the NFL, visit this link.
