ALBANY, N.Y. (Legal Newsline) - Risk-free wagers feature plenty of risk while inducing bettors to use PointsBet, a class action lawsuit says.
Plaintiff Matthew Hogan and lawyer Spencer Sheehan sued PointsBet New York on June 6 in New York federal court. The suit says bettors are able to withdraw winnings, but lost bets become credits to be used for future bets.
Customers believe if a bet of $500 is lost, the same amount would be credited to their account, Sheehan says.
"This representation is false because if the customer's bet wins, they do not receive the wager amount itself," the suit says.
"For example, if a customer places a $500 wager with very good odds that would return $600 if won by betting cash, that same customer would only receive $100 if using the 'risk-free' bet amount.
"The result would be a loss of $400 because Defendant would retain that money, so it is not risk free."