DraftKings facing lawsuit for shutting down $14 million golf win tournament

Legal

DraftKings voided an Iowa man’s golf-tournament wagers, denying him $14.2 million in purported winnings, says it retains the right to void any bets due to errors.

Nicholas Bavas, a resident of Dallas County, is suing DraftKings Inc., a sports gambling website, and its subsidiary Crown IA Gaming, which is licensed by the Iowa Racing and Gaming Commission to conduct sports wagering within the state.

Bavas claims DraftKings unfairly voided the bets he placed on the 2024 AT&T Pebble Beach Pro-Am golf tournament as rain threatened to cut short play after 54 holes. Aware there was a good chance of the final round being canceled, and with DraftKings still accepting bets on the tournament’s outcome, bettors around the country, Bavas included, put their money on all of the competitors who were then in the lead.

DraftKings has denied any wrongdoing in the matter and recently asserted 19 separate affirmative defenses in the case, including a claim that Bavas “knowingly accepted the risk that circumstances may arise related to the odds associated with any wager.”

The company argues that this risk was disclosed in the “house rules” to which Bavas agreed, including rules that expressly warn that errors may occur and DraftKings has the right to void wagers due to any such errors.

Attorneys for Bavas argue DraftKings applies a “dizzying array of interlocking sets of rules that may or may not govern each bet depending on the type of wager placed, the specific event, and the particular sport … However, when DraftKings makes an error or accepts a bet it should not have, or when unforeseen events occur that require an unanticipated large pay out by DraftKings, then it seems different rules apply.”

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