By using DraftKings, you agree to resolve any legal disputes through private arbitration rather than by filing a lawsuit in court, and you give up your right to join a class action lawsuit against DraftKings.
This analysis describes what DraftKings's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This clause significantly limits your legal options if you have a dispute with DraftKings over money, account actions, or any other grievance, and removes your ability to join with other users in a class action.
The updated terms establish that daily fantasy terms apply only to fantasy sports contests and explicitly exclude other DraftKings services like sportsbook, igaming, and horse racing. Illinois residents now face a minimum age requirement of 21 to open accounts and participate in contests, while the prior exception allowing 18-year-olds in Virginia who opened accounts before July 1, 2025 no longer applies. The terms now prohibit use of VPNs or attempts to disguise physical location while using the platform, treating such use as a terms violation. Additionally, DraftKings has reserved authority to transfer account funds across its affiliated platforms to meet regulatory or operational requirements without requiring advance notice for each transfer.
View change record →If DraftKings withholds your funds, closes your account, or you believe you were treated unfairly, this clause means you cannot sue in court or join a class action and must instead go through individual arbitration, which is typically more expensive and burdensome for individual consumers.
How other platforms handle this
If, however, this Class Action Waiver is deemed invalid or unenforceable with respect to a particular Dispute...neither you nor Chegg will be entitled to arbitration of such Dispute.
the arbitration provider, National Arbitration and Mediation ("NAM"), shall not accept or administer any demand for arbitration and shall administratively close any arbitration unless the Party bringing such demand for arbitration can certify in writing that the terms...were fully satisfied.
Neither you nor we may elect arbitration of any claims seeking only individualized relief asserted by you or us in small claims court, so long as the action remains in that court and is not removed or appealed de novo...
"PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS, INCLUDING YOUR RIGHT TO FILE A LAWSUIT IN COURT. You and DraftKings agree that these Terms of Use affect interstate commerce and that the Federal Arbitration Act governs the interpretation and enforcement of these arbitration provisions. This Section is intended to be interpreted broadly and governs any and all disputes between us including but not limited to claims arising out of or relating to any aspect of the relationship between us, whether based in contract, tort, statute, fraud, misrepresentation or any other legal theory; claims that arose before this Agreement or any prior agreement (including, but not limited to, claims related to advertising); and claims that may arise after the termination of this Agreement. The only disputes excluded from this broad prohibition are the litigation of certain intellectual property and small claims court claims, as provided below. By agreeing to these Terms of Use, you agree to resolve your dispute with DraftKings through binding arbitration instead of in court.Excerpt from DraftKings's Terms of Use
REGULATORY LANDSCAPE: The arbitration provision invokes the Federal Arbitration Act as its governing framework, which courts have broadly upheld for consumer agreements.
Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.
Search "[your state] attorney general consumer complaint" to find your state's direct complaint form
Coinbase's User Agreement includes a mandatory arbitration clause that most users may not have reviewed. Here is what the clause states and how the opt-out process works.
561 arbitration provisions across 197 platforms. ConductAtlas tracks how dispute resolution is being restructured across the internet.
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This clause significantly limits your legal options if you have a dispute with DraftKings over money, account actions, or any other grievance, and removes your ability to join with other users in a class action.
If DraftKings withholds your funds, closes your account, or you believe you were treated unfairly, this clause means you cannot sue in court or join a class action and must instead go through individual arbitration, which is typically more expensive and burdensome for individual consumers.
ConductAtlas has identified this type of provision across 206 platforms. See the full comparison.
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