Provision record
DraftKings · DraftKings Terms of Use · View original document ↗

Chargebacks and Prize Invalidation

Medium severity High confidence Explicit document language Common · 230 of 352 platforms
Stay ahead of the changes
Track DraftKings and get the diff the day its terms change.
Share 𝕏 Share in Share 🔒 PDF
Document Record

What it is

If your bank reverses a deposit you made to DraftKings, any winnings you earned using those funds will be cancelled, the original deposit amount will be deducted from your account, and your account may be closed without warning.

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

If your bank initiates a chargeback, even for a legitimate reason such as unauthorized use of your card, DraftKings can cancel all associated winnings and close your account, creating a situation where you lose both the disputed deposit and any earnings you had accumulated.

Recent Activity

This document changed recently

Medium Jul 1, 2026

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 →

Clause Stability Stable

0
Changes
4
Months Monitored
May 9, 2026
First Seen
May 22, 2026
Last Seen
This clause type exists across 2197 other provisions on other platforms.

Change history

removed Aug 1, 2026

This provision was removed as a standalone section and consolidated into the 'No Refund Policy and Chargebacks' provision in the current version, streamlining the terms but maintaining the same substantive restrictions.

View full change record →

Consumer impact (what this means for users)

A chargeback from your bank, even if initiated by the bank automatically due to fraud, could result in the loss of contest winnings and account closure, creating a situation where resolving a payment dispute with your bank inadvertently triggers financial and account consequences at DraftKings.

What you can do

⚠️ These actions may provide transparency or partial mitigation but may not fully address the underlying issue. Effectiveness varies by jurisdiction and individual circumstances.
  • Dispute a Fee
    If a chargeback was initiated by your bank without your request and you believe your winnings were wrongly forfeited, contact DraftKings at support@draftkings.com with documentation of the original transaction and the chargeback circumstances. Also contact your card issuer to explain the situation.

How other platforms handle this

Tinder Medium

If you do not timely cancel your subscription, your subscription will be renewed at the full price as indicated when the purchase was made, without any additional action by you, and you authorize us to charge your payment method for these amounts.

Perplexity AI Medium

You also authorize us to retry any failed authorizations. We may use data provided to us by our partners to determine when to schedule such retries.

ActiveCampaign Medium

Any renewal of your AC WhatsApp Service subscription or your WhatsApp Credit Subscription will be at the then current prices listed on, or otherwise accessible via, the ActiveCampaign Pricing page without applying any prior discount.

See all platforms with this clause type →
▸ View Original Clause Language DOCUMENT RECORD
"
If any deposit is charged back any winnings generated from DraftKings contests shall be invalidated, forfeited and deducted from your Account balance. In addition, the amount of the initial deposit will be invalidated, forfeited and deducted from the Account balance. DraftKings reserves the right to close your account - without notice - shall a deposit be charged back.

Excerpt from DraftKings's Terms of Use

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

REGULATORY LANDSCAPE: The chargeback consequence provision creates a tension between card network chargeback rights, which are independent of merchant terms, and DraftKings' contractual response to chargeback events.

Insight

Unlock the full institutional analysis

Enforcement risk, jurisdiction flags, contract triggers, and due diligence action items.

Applicable agencies

  • Consumer Financial Protection Bureau (cfpb)
    Regulates consumer financial products and services. Can investigate companies for unfair, deceptive, or abusive financial practices including improper fees, billing errors, and data misuse.
    Who can file: Anyone who has used a consumer financial product or service in the US
    What you need: Account number or details, dates of transactions or events, description of the issue, and any supporting documents
    What to expect: The company must respond within 15 days. The CFPB forwards your complaint and may use it in enforcement actions. Individual compensation is possible in some cases.
    File a complaint →

Provision details

Document information
Document
DraftKings Terms of Use
Entity
DraftKings
Document last updated
May 5, 2026
Tracking information
First tracked
May 7, 2026
Last verified
May 9, 2026
Record ID
CA-P-007626
Document ID
CA-D-00348
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
ed63c19c7ed37989fe1f2f4c3ee5050bd18a06d50ccb46aa77b4290df55a1189
Analysis generated
May 7, 2026 08:55 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: DraftKings
Document: DraftKings Terms of Use
Record ID: CA-P-007626
Captured: 2026-05-07 08:55:40 UTC
SHA-256: ed63c19c7ed37989…
URL: https://conductatlas.com/platform/draftkings/draftkings-terms-of-use/provision/CA-P-007626/chargebacks-and-prize-invalidation/
Accessed: Sept. 8, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
Medium
Categories

Other risks in this policy

Get the research letter

Companies change their terms quietly. We read every version and catch what actually changed. One email a week on the changes that matter and what they mean.

Frequently Asked Questions

What does DraftKings's Chargebacks and Prize Invalidation clause do?

If your bank initiates a chargeback, even for a legitimate reason such as unauthorized use of your card, DraftKings can cancel all associated winnings and close your account, creating a situation where you lose both the disputed deposit and any earnings you had accumulated.

How does this clause affect you?

A chargeback from your bank, even if initiated by the bank automatically due to fraud, could result in the loss of contest winnings and account closure, creating a situation where resolving a payment dispute with your bank inadvertently triggers financial and account consequences at DraftKings.

How many platforms have this type of clause?

ConductAtlas has identified this type of provision across 230 platforms. See the full comparison.

Is ConductAtlas affiliated with DraftKings?

No. ConductAtlas is an independent monitoring service. We are not affiliated with, endorsed by, or sponsored by DraftKings.