FanDuel sued over 'Welcome Bonus' for new members

By Shaun Zinck | May 14, 2015


A popular fantasy sports gaming website is being sued over allegations that it falsely advertised a promotion for new members online.

Wesley Leung filed the lawsuit in Superior Court of California on April 28 against FanDuel, an online fantasy sports website where users pay money to play in the fantasy sports games. The users can win money if their team wins a match.

Leung claims FanDuel advertised it would pay a “Welcome Bonus,” which included a “dollar for dollar” match of up to $200, to all new members. The lawsuit states instead FanDuel uses a “very intricate formula” that requires users to keep playing and invest more money.

Leung said the welcome bonus is 4 percent of the entry fee for each contest entered by that customer.

“For example, if a customer signs up and deposits $200 as his initial deposit, FanDuel does not match the customer's deposit with a bonus of $200, and the customer does not have $400 in his account,” the lawsuit said. “Instead, the customer is required to spend his deposit money by entering contests. If the customers enters a contest for $200...FanDuel distributes a bonus of $8 (4 percent of the contest entry fee.)”

Leung is seeking class status for all those who signed up with FanDuel expecting the welcome bonus. He is also seeking an unspecified amount of damages.

He is represented by Mark A. Milstein of Milstein Adelman, LLP in Santa Monica, Calif., and Sarah L. Gough of Flaherty Hennessy, LLP in Playa del Rey, Calif.

Superior Court of the State of California for the County of San Bernardino case number 5:15-cv-00835.

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