Hard Rock Digital in Legal Trouble for “Misleading” Bonus Offer

Brandon Montgomery has filed a federal class action lawsuit against Hard Rock Digital over a free bet offer that, as reported by Next.io, the plaintiff considers to be misleading. The promotion in question is dubbed “No Regret First Bet,” and, according to the lawsuit, the way it is structured leads to a user experience that does not match the “risk-free” messaging present in the advertisement.

As highlighted by Mr. Montgomery, the issue revolves around the requirements that clients must put real money at stake prior to the bonus funds and that if one wishes to cash out, they must also wager the bonus money. This results in the promotion losing half its value for customers whose first bet is not a winning one.

“New user losers are left with nothing but regret and half of the value they put into the app,” he stressed. An emphasis was also placed on how Hard Rock Digital allegedly used the promotion with the goal of tempting its newest clients into placing parlays and other bets that are considered to carry great risk and are typically recommended only to experienced bettors.

This is not the first time Hard Rock has faced legal challenges in Florida’s courts, as even its launch in 2023 was the culmination of a prolonged legal battle. In addition, this year saw companies West Flagler Associates and Bonita-Fort Myers Corp. launch a petition that could have resulted in the compact signed between Hard Rock Digital’s owner, the Seminole Tribe, and the state of Florida, being declared illegal. The companies’ challenge was rejected by the U.S. Supreme Court, and Hard Rock Digital will continue operating as a monopoly in Florida.

Betting Regulation Issues Across the U.S.

Unfortunately, betting companies having run-ins with the law is not uncommon in the States. In a case that mirrors Hard Rock’s current predicament, DraftKings was recently sued in New York for promotions that were also advertised as “risk-free” yet ultimately lacked the value that was highlighted in the marketing materials.

Another company that has come under fire for regulatory issues is Bet365. Earlier this month, Bet365 was ordered to pay bettors over $519,000 after an investigation by New Jersey’s Division of Gaming Enforcement revealed that Bet365 had tampered with the odds of winning bets without consulting with the regulator. Bet365’s misconduct has affected a total of 199 winners who had placed their bets between 2020 and 2022.

Bet365’s initial response was that it was well within its rights to change the odds when “an obvious error” was detected. Indeed, this is included in the terms and conditions of the bookmaker, and this type of conduct is generally considered standard practice among remote betting companies. However, New Jersey’s gambling rules dictate that modifying the odds in such a manner can only be done if a company has contacted the state’s gambling supervisor and gained approval to issue the changes. The Division of Gaming Enforcement has thus maintained that, by failing to follow proper protocol prior to changing the odds, Bet365 had breached New Jersey’s betting regulations.