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

Mandatory Individual Arbitration and Class Action Waiver

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Document Record

What it is

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

ConductAtlas Analysis

Why it matters (compliance & governance perspective)

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.

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
Jul 9, 2026
First Seen
Jul 9, 2026
Last Seen

Change history

modified Aug 1, 2026

The provision was substantially expanded with explicit explanations of arbitration mechanics, informality, finality, and limited review scope, making the class action waiver more conspicuous and detailed.

View full change record →

Consumer impact (what this means for users)

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.

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.
  • Opt Out of Arbitration
    Within 30 days
    Send a written notice to DraftKings at support@draftkings.com within 30 days of first using the services stating that you are opting out of the arbitration and class action waiver provisions. Include your account name and the statement that you are exercising your opt-out right.

Cross-platform context

See how other platforms handle Mandatory Individual Arbitration and Class Action Waiver and similar clauses.

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▸ View Original Clause Language DOCUMENT RECORD
"
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

ConductAtlas Analysis

Institutional analysis (regulatory & governance intelligence)

1.

Insight

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

Applicable agencies

  • Federal Trade Commission (ftc)
    Oversees unfair or deceptive business practices and can investigate companies that mislead consumers about data collection, sharing, or use.
    Who can file: Anyone affected by the company's practices (US or international)
    What you need: Your account details, a timeline of relevant events, and a description of the specific issue
    What to expect: Complaints inform FTC enforcement priorities and investigations but do not result in individual resolution or compensation
    File a complaint →
  • State Attorney General
    State AGs in California, New York, Texas, and other states can investigate violations of state consumer protection and privacy laws, including CCPA (California), SHIELD Act (New York), and equivalents.
    Who can file: Residents of states with comprehensive privacy laws — primarily California, Virginia, Colorado, Connecticut, and Utah
    What you need: Evidence of the violation, explanation of how your state rights were affected, and your account or contact information with the company
    What to expect: Outcomes vary by state. May result in investigation, enforcement action, or requirement for the company to change practices. No direct individual compensation in most cases.

    Search "[your state] attorney general consumer complaint" to find your state's direct complaint form

Provision details

Document information
Document
DraftKings Terms of Use
Entity
DraftKings
Document last updated
May 5, 2026
Tracking information
First tracked
July 9, 2026
Last verified
July 9, 2026
Record ID
CA-P-015148
Document ID
CA-D-00348
Evidence Provenance
Source URL
Wayback Machine
Content hash (SHA-256)
ad9ce431c997ae664451a169d97d1a695508b628e258f2470818d55c0d604566
Analysis generated
July 9, 2026 07:16 UTC
Methodology
Evidence
✓ Snapshot stored   ✓ Hash verified
Citation Record
Entity: DraftKings
Document: DraftKings Terms of Use
Record ID: CA-P-015148
Captured: 2026-07-09 07:16:34 UTC
SHA-256: ad9ce431c997ae66…
URL: https://conductatlas.com/platform/draftkings/draftkings-terms-of-use/provision/CA-P-015148/mandatory-individual-arbitration-and-class-action-waiver/
Accessed: Sept. 8, 2026
Permanent archival reference. Stable identifier suitable for legal filings, compliance documentation, and research citation.
Classification
Severity
High
Categories

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Frequently Asked Questions

What does DraftKings's Mandatory Individual Arbitration and Class Action Waiver clause do?

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.

How does this clause affect you?

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.

Is ConductAtlas affiliated with DraftKings?

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