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The agreement requires users to resolve disputes with DraftKings through individual binding arbitration administered under JAMS rules, waiving the right to jury trial and participation in class or collective actions. A 30-day opt-out window is available from the date of first use or account creation.
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 provision requires that disputes between users and DraftKings proceed through individual arbitration rather than court proceedings, and prohibits participation in class or collective actions. The 30-day opt-out window is the operative mechanism for users who wish to preserve court access.
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 →Under this clause, users who do not opt out within 30 days of first use are bound to resolve all covered disputes through individual arbitration and cannot participate in class actions against DraftKings. The agreement requires written notification to DraftKings to exercise the opt-out.
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"PLEASE READ THIS SECTION CAREFULLY. IT AFFECTS YOUR LEGAL RIGHTS. IT PROVIDES FOR RESOLUTION OF MOST DISPUTES THROUGH INDIVIDUAL ARBITRATION INSTEAD OF COURT TRIALS AND CLASS ACTIONS. ARBITRATION IS MORE INFORMAL THAN A LAWSUIT IN COURT. ARBITRATION USES A NEUTRAL ARBITRATOR INSTEAD OF A JUDGE OR JURY. ARBITRATION IS FINAL AND BINDING AND SUBJECT TO ONLY VERY LIMITED REVIEW BY A COURT. BY AGREEING TO THESE TERMS, YOU AND DRAFTKINGS EACH AGREE TO THE FOLLOWING: (1) WAIVE YOUR RESPECTIVE RIGHTS TO A JURY TRIAL AND TO HAVE ANY DISPUTE ARISING UNDER THESE TERMS OF USE RESOLVED IN COURT; AND (2) WAIVE YOUR RESPECTIVE RIGHTS TO BRING OR PARTICIPATE IN ANY CLASS OR COLLECTIVE ACTION OR ANY OTHER PROCEEDING IN WHICH EITHER PARTY ACTS OR PROPOSES TO ACT IN A REPRESENTATIVE CAPACITY.Excerpt from DraftKings's Terms of Use
1. REGULATORY LANDSCAPE: Mandatory arbitration clauses in consumer contracts engage the Federal Arbitration Act and are subject to scrutiny under state consumer protection statutes, particularly in California under relevant state law provisions that have addressed arbitration enforceability in consumer contexts. The FTC has indicated interest in mandatory arbitration practices as a consumer protection matter. State attorneys general retain enforcement authority over consumer contract terms in their jurisdictions. 2. GOVERNANCE EXPOSURE: High. The combination of mandatory individual arbitration, class action waiver, and a $100 liability cap creates a compounded limitation on consumer legal recourse that may attract regulatory scrutiny, particularly in states with consumer protection statutes that restrict or condition the enforceability of such provisions in consumer-facing agreements. 3. JURISDICTION FLAGS: California courts have on occasion declined to enforce class action waivers in consumer contracts under state unconscionability doctrine, though the legal landscape in this area is complex and evolving. Illinois, New York, and other states with active consumer protection enforcement create heightened exposure. The 30-day opt-out mechanism may require evaluation against jurisdiction-specific notice adequacy standards. 4. CONTRACT AND VENDOR IMPLICATIONS: The arbitration clause asserts that it covers all disputes arising under the terms of use, which would include prize withholding, account termination, and fund handling disputes. Procurement teams evaluating DraftKings as a vendor or partner should note that this clause governs the user-platform relationship and does not necessarily extend to B2B contractual arrangements. 5. COMPLIANCE CONSIDERATIONS: Legal teams should audit whether the 30-day opt-out mechanism is disclosed prominently at the point of account creation and whether the notification procedure is clearly communicated to users. The arbitration clause should be reviewed against applicable state law in California, Illinois, and other jurisdictions with active consumer arbitration jurisprudence to assess enforceability risk.
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This provision requires that disputes between users and DraftKings proceed through individual arbitration rather than court proceedings, and prohibits participation in class or collective actions. The 30-day opt-out window is the operative mechanism for users who wish to preserve court access.
Under this clause, users who do not opt out within 30 days of first use are bound to resolve all covered disputes through individual arbitration and cannot participate in class actions against DraftKings. The agreement requires written notification to DraftKings to exercise the opt-out.
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