Caesars Wins Reprieve In Illinois Lawsuit Against ‘Free Bet’ Promotions

Caesars Sportsbook has won a partial victory as a judge in Illinois has ordered that a lawsuit against the platform’s free bets advertising move to arbitration.

Plaintiffs Cassandra Geske and Tilman Colbert Jones filed the lawsuit in a federal court in Illinois in 2023, claiming that Caesars lured new bettors in with false promises of “free bets”.

U.S. District Judge Thomas Durkin ruled that because the users had agreed to Caesars’ terms and conditions when signing up, it was not a matter for the courts to decide. Instead, the case must be settled by arbitration.

In 2023, American Wagering Inc., the parent company of Caesars, initially requested arbitration but was denied by the judge. A further investigation by the company revealed that the users had seen and agreed to the service’s terms, which included a mandatory arbitration agreement.

User Lost Money On False Promises Of “Free” Bets

Geske said she signed up to the platform only because of the advertising that stated she could receive free bets. However, she had to wager her own money before a losing bet was refunded as credits to use on the site.

After losing the bets placed with the credits, she ended up out of pocket. In the lawsuit, Geske stated: “Her initial bet, therefore, was not ‘risk-free’ or ‘free,’” contrary to Caesars Sportsbook’s promises.

In addition to users having to stake their own money before any reward can be claimed, Caesars now levies a $0.25 fee on every bet placed in Illinois. This is in response to a tax implemented in this year’s state budget, which charges a fee of $0.25 or $0.50 per bet to sportsbooks, depending on the amount of wagers the platform accepts.

Free Bet Terms Face Legal Scrutiny

Caesars also faced a class action lawsuit in New York over its promotion of free bets that were not strictly speaking free. This case was also sent to arbitration as the plaintiffs had agreed to Caesars’ terms and conditions.

Other companies, including DraftKings, have been sued for the use of terms such as “free bet” or “risk-free” in advertising. The terminology has been challenged by lawmakers in several states, with some outlawing its use.

Ohio, New York, Virginia, and Massachusetts have all clamped down on companies using the terminology, if users have to make use of their own money.

Illinois also tightened its rules around advertising last year, prohibiting phrases like “free,” “free bet,” or “cost-free.” The lawsuit, however, was brought before this legislation was enacted.

The American Gaming Association (AGA), of which Caesars is a member, also updated its responsible gambling code in 2023 to urge companies not to use the term “risk-free” in adverts.