Is DraftKings a Scam?

| March 1, 2014 | 58 Comments


Is DraftKings A Scam?

A frequent question people looking in to daily fantasy sports sites have is, “Is DraftKings a scam?” They ask this because they know that gambling online is illegal, yet this site claims to offer real money prizes betting on fantasy sports. The truth is, the site is 100% legit and 100% legal (except for residents of Arizona, Iowa, Louisiana, Montana, Washington, and Quebec due to state-specific laws).

Due to a loophole in the 2006 law that made online gambling illegal, this and other daily fantasy sports sites are able to pay out real money.

The law that made online gambling illegal, 2006’s Unlawful Internet Gambling Enforcement Act, explicitly carved out an exemption for fantasy sports online. This was done because millions of Americans use websites to run their season-long fantasy leagues.

Since money is often wagered on this, suddenly millions of people would find themselves on the wrong side of the law. In order to prevent this, fantasy sports were exempted from these rules.

These same rules apply to daily fantasy sports. The only difference between season long fantasy sports and daily fantasy sports is the length of a particular game.

Therefore you can be confident that you are not running afoul of the law by depositing to DraftKings. It is completely legal, the money you win is legit, and everything is done above the board.

Just because it is legal, however, does not necessarily mean that it is legit. Fortunately, DraftKings is not a scam and they work exactly as advertised. They are based in the USA, meaning they are subject to American law. This is not some shady operation based on a small Caribbean island that you’ve never heard of.

It is an American company that has been featured in major publications such as the Wall Street Journal and the Boston Globe. You can trust DraftKings because it has been endorsed by these reputable news outlets.

It means they are not scamming you when they offer great deposit bonuses or the amount of games that they have. It is very easy to deposit with your PayPal account, and if you win, you can withdraw that money immediately back into your PayPal. There is no waiting for a check or extra hoops to jump through – you are paid immediately upon winning and will have access to that money as quickly as PayPal can process it.

Often this is done immediately. The reason we play daily fantasy sports is to win cash, and at DraftKings, you will get the fastest payouts in the industry.

If you are hesitant to deposit into DraftKings because you fear it is a scam, don’t worry. The claims may sound too good to be true (especially for people who lost money when the government shut down the online poker sites) but they are exactly as advertised.

If you love fantasy sports and want to play every day, make a deposit to DraftKings. There are thousands of satisfied players on this site playing daily.

To see what all the fuss is about, make a deposit today or play their Free Games!


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Comments (58)

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  1. while it is true that they are legitimate sights there advertising about matching your first deposit is at best misleading and at worst an outright lie.

    At the start of the NFL season they say they will match your first deposit up to $200. Draft Kings claims they tell you how the bonus works at the start, but not really.

    The way the initial bonus works it is released based on bets you make. They release 4 cents per $1 you bet. So your real bonus on the $200 is not $200, but 4% of $200 or $8. If you think you will have $400 to bet with if you put $200 in than you are sorely mistaken. If you don’t win anything you will have $208 to bet with. Even if you win $200 you will only get $16 of the promised $200 matching deposit.

    This is what I call misleading and a scam.

    All that said, Draftkings is better than fanduel in that they have more free contests, and inexpensive contests than Fanduel.

    My summary is if you like Daily Fantasy sports, play Draftkings, but don’t put a lot of money in and don’t expect a matching bonus. It just is not true.

    To get your $200 bonus you would have to bet $5,000 and then you will get the $200 that they say they are matching. They make a profit of $300 on the $200 promised and you have probably lost at least a couple thousand dollars to get your bonus.

    • Bob says:

      We have won on Thursday game $30000 but when the game was over the kept my game open because they wanted to wait til Sunday which I didn’t have any one playing a game on Sunday my money dropped from $30000 to $7 but any other games I played the game is over and results closed not open it is funny they you guys defend draft kings

      • T Severs says:

        Read the rules. Please

        • donna says:

          I opened an account yesterday ,made a small deposit played the free game they offered plus one more.had no issues until I tried to play a contest later that day and it wouldn’t let me,when I inquired about this I got a generated email telling me there computer says I am out of jurisdiction.whem\n I informed them that I was in a valid location I just kept getting the same email over and over so my 1 day at draft kings is over.if there computers cant detected where an IP address is located correctly then they have a BIG ISSUE

      • Al says:

        Well Bob you are called a fish. You play a Thursday-Monday NFL game which means that all NFL games count then you pick all the players from Thursdays game, of course you will be at the top. Good players don’t put all their eggs in one basket. Then you complain because you have know idea what your doing. Do You really think that only one game on Thursday is the whole tournament? Most people are not too bright especially if you think that one NFL game is the whole tournament therefore you are a true FISH.

    • JT says:

      I wish I would have read this before I signed up for DK. Also when you contact them by email, they respond they are too busy and you to the FAQ page.

    • Jake Wall says:

      Wow I didn’t realize this about the Draft Kings cash bonus on sign up. I was under the impression that if you used a promo code you would literally get an additional $200 to play with if you deposited $200. I guess I just assumed they were making so much money on each new player that the $200 wouldn’t hurt the bottom line. This is definitely misleading.

  2. Jay Gellman says:

    I say its a scam, got a email today from MLB with a contest that is No purchase Necessary to enter so I figure let me see what this is all about. All of a sudden I find that If I want to submit my free entry, I have to pay Draft Kings money first. This is no way a free entry as advertised it is a 100% scam at least as far as this MLB contest goes

    • Kevin says:

      Do you know what a scam is? Just because they advertise something but there is a catch does not make it a scam. If they did not pay you or they rigged their games then it is a scam. As long as you are able to play draftkings and they hand out money based on how well you did against other people then it is legit.

    • T Severs says:

      When is the last time you were offered something that was free and it was legit?

  3. Jeff says:

    What I mean by scam is this…Do you think that the people who run the site cheat…it would be so easy for them to pick a winning combination of players after the games are played and then submit it…Or can you see all the names before the games start?

    • Kevin says:

      That was my 1 concern and how they could rig it. If you are not able to see who everyone picked then they could easily do what you suggested. The one thing I will say is my dad knows a guy who won 50,000 from fanduel. I know this is draftkings but I don’t think these sites are completely rigged if at all. Only way to really find out is to play. I only deposited 20 dollars so not really risking much.

      • Peyton says:

        Once the contest starts, all entries are locked and publicly viewable. In other words, entries cannot be added or modified after start of the event.

        • Timmy says:

          How can you see your opponents lineups? that’s complete crap. you can only see the other lineups AFTER the contests have finished. This is so open to fraud that its ridiculous.

          • Harry James says:

            When you have entered a contest and it has started. Select my contest across the top. When the page opens the game you entered shows down in the middle of the page. to the right select standings, this will open the standings of contestants playing along with your line up. In between standings and line up is a slide bar. You can scroll up the list to see what position entrants that are winning and who they are. Hope you understand this an it helps. I don’t put a lot of money into it but think its fun. Good Luck

        • jeff says:

          Hi :) Where can I view the entries?

        • Sam says:

          This is garbage. I played for the first time this weekend, and it’s simply amazing how the top people can score so many points. Some of the sleeper picks that scored a ton of points that noone would ever pick to be on their roster were part of the lineup. I get that sometimes people can get lucky, but IMO, it is extremely shady to have nothing but the top week’s scoring players on the rosters. I’m going to play out my deposit and get out.

          • Boda says:

            Its a joke. Played for 5 weeks only won a couple bucks. To many combinations and factors and theres probably group of people gathering a large percentage of the winnings by using the same combinations over all entries. If they can flood it out, then new single entries have very small chance to win. In the end, your chances are slim and the only winners are the ones getting commissions.Even the big players are still have poor odds.

    • T Severs says:

      Than you could copy a guy’s lineup.

  4. Chris B says:

    Draft kings is a scam-
    I played the NFL last year-
    Noticed the exact same winners in the same game would win 1st place – 2nd place- 3rd place etc etc
    Meaning that player would have to pick different fantasy teams and enter many many times in that exact same entry ?
    Who would do that 10 x?
    A pay each fee per entry?
    And amazingly WIN!!! All ?
    What are the odds?
    147 billion to 1′
    Amazing scam!!!!
    Also- have you noticed the same 3 commercials on Espn and other stations?
    For over a year? The same silly stupid tv commercials over and over? Odd huh?
    Supposingly new winners?
    Yet only 3 big winners for ovef a year now?
    I think thats the dead giveaway!
    What a fraud! Wow!
    These clowns are laughing all the way to the Bank.

    • GMAN says:

      Love your post. But wow are you lost. I play 60-70 line ups every day for hockey. And just because I have the top 3 some nights, don’t mean I didn’t have many others lose. Why do I make so many line ups? Well, I’m not on there to make friends, I do it to make money and to this point have made $7000-$10000 per month every hockey season. I don’t do any other sport as I’ve have yet to devise a winning system in them.

  5. Scott Hemsley says:

    The only fear I have is its a set up and Draft Kings has the winners all set and ready to go. They have total control of what teams are set up. It would be extremely easy for them to post teams after the day is done, make changes to teams as games go on. I’m going to play, but its a concern and will continue to be until I see someone I know win or they figure a way to be transparent.

    • Kevin says:

      I agree. I was hoping and still hope they will show teams after the games start. Very easy for them to switch things the day after. Now I will say this. My dad knows someone who won 50,000 from fanduel. I do think they pay out as I am sure they want real people to win so they get real people out there promoting them. However, if they are letting a few people win and then rigging the rest then the odds of winning big money is that much lower and not sure if it is really worth playing.

  6. Frank says:

    It is not a scam. Its a lot of fun. I play every week. You can only lose as much as you put in.

    • Charles says:

      the scam is the $ bonus they give you for the first deposit. They tell you up to $200, but to get that much of a bonus you have to bet over $6,000. That is what they don’t tell you.

  7. Thomas Pouncey says:

    DraftKings is 100% legit and if you win the money is real and is deposited in your PayPal account within hours. I know this became I won $1088.00 and anything won over $600 is reported to the IRS and I had to fill out some tax forms and the money was in my account within 4-6 hours. I really didn’t pay much attention to the sign up bonus and it may have some small print tactics involved with it but the most important part of the matter is 100% LEGIT and the money is Real.

  8. Anthony says:

    drift king is a scam I played MMA last night went too bwoke up this morning try the check the website for the MMA recent it wasn’t there about 10 o’clock it showed up this is about the fourth or fifth time this is happen I will never play FanDuel or drafting anymore. scam scam.

  9. Playmaker5 says:

    Is the odds of winning money on draft kings like winning the lottery??

    • Richard says:

      It’s actually a lot better if you really look at it. It can seem like it’s like playing the lottery, but with the lottery you have no chance at all in really changing your odds by using research and knowledge of the players and their individual situations. So apply this knowledge can really influence your chances of winning.

  10. Anonymous says:

    id rather spend my money on poor or on a hooker on a weekend

  11. Freeman says:

    Is draftking really real people play these games with there hard earn money. To try to win there retirement.

  12. Steve G says:

    I am a Boston guy and this is apparently a
    Boston based business, but in my opinion these guys are deceiving people who sign up and in the words of REAL New Englanders they are dirtbags. If you are not honest don’t do business here…(unless you are a politician)

    You shouldn’t support these guys over any other sites. They must be Vegas-backed even though their ads look otherwise.

  13. Jay says:

    I have been playing on draftkings now for about 2 months. I did deposit $ 20 dollars at first and got it up to $ 45 so I cashed out $ 25 to see if it is legit and did get payed within hours paypal. I did another contest and placed 4th and won $ 175 dollars on a $ 3 dollar bet. I cashed out $ 150 just now and should have it within a few hours. I will let you all know when I get it

  14. Chris says:

    Kevin are you employed by draftkings? Do you have any factual proof that the company does not use bogus accounts to levy against the large tourneys? Its seems odd to me that they pay out huge money weekly in tourneys yet you never read about the current winners. BTW your site sucks ballz

  15. I won $390 says:

    I deposited $25 played .25to $3 games, I ended up in the money on 15% of my games winning a total of $892.45 some places payed higher. one game I won .15 cents. one game I won $266. maybe the top 3 are never real players, but I got 8th place out of 23,000 people in golf. $1 entry fee. won $266

  16. Cbear6 says:

    It’s a ripoff! You have a better chance at winning the lottery then on Draftkings or Fanduel! I bet the top winners are computer generated players with winning teams. They may let you win a few bucks here and there to get your hopes up and have you spend more money, but your chances of winning big are nil! Spend your money on scratch off tickets better chance of winning anything.

  17. Mikey says:

    Well, the money has to come from somewhere, so if you win “over 2 million dollars” like they say on the tv ads, don’t be fooled. This is a total b.s. scam. Draft kings (and fanduel) are both paying big bucks to advertise, so where is this money coming from? Money going to these sites plus the “winners”, therefore someone must be losing a shitload of money to account for the lack of balance in the system

    • Joe says:

      Using simple math you can see how they make money unless you are an idiot.

      This weeks top game pays out a total of 7 million to players.

      The entry is 20/person and limited to 400,700 entries

      So draft Kings makes 1.1 million on that contest alone.

      In two weeks i’ve spent $60 and won $1.50 so yeah it sucks. You need to score around 200 points to win anything. The matching deposit is a scam.

  18. Bob says:

    I played Draft Kings I won $388.00 But they only payed me $368.00 and no bonus as they state I have E mailed them but I’m ignored. What kind Of Regulations are they under. And what state. were can I go to file a complaint. Underpayment.

  19. Joe Haskill says:

    it is a scam, i have tried several games and never cashed. I believe they make up the entries of all the others in your game and only a few ever cash. the rest are just the “made-up” entry the draft kings formulates. This may sound far fetched but I am sure it is how they operate. It would be easy for them to do this.

    I will never deposit or play again. by the way the “match” funds thy promise I have seen $1.00 of this “matched” money. What a rip off, what a joke

  20. dukecommand says:

    DraftKings has a good way to make money, they just don’t give out all the payments in prizes; example in one week fantasy football has 34,900 entries at $3 an entry that equals $104,700 yet only pays out $89,000 in prizes, they make $15,700 off of that one game. Simple math says they don’t have to cheat.
    Just my two cents.

    • Harry James says:

      I would agree. They are making some serious coin.

    • Jimmy T says:

      Yes True they don’t have to cheat they will make money. But they cheat to make truck loads of money!! Why settle for 15,700 of the pot when they can be tricksters and take 80,000 of the 104,700 total. “Greed is always mans downfall”

  21. Will s says:

    I can see that draft kings is using bots to make more money stealing from the big tournaments. I watched the so called person who came in first top striker change to the days top scorer once he scored his second goal, and ironically the person who came in 2nd also came in 3rd, 4th, 5th, and 6th with the same lineup as someone stated before. I don’t think they are being legit and are stealing money from players on tourneys. You should take screen shots of the top players lineups early on and see if thy match halfway through tourney. Id be very skeptical

    • Michael says:

      Entries are not publicly viewable. You can only see what players they are using at the time of those players’ games. You can only view other line ups AFTER the games have started. Also a player with the user name trashedRC was able to manipulate his line up after the players’ games were over. In a WR spot in his line up he had Colts ‘ WR Moncreif. I checked again in five minutes and noticed that now Redskins’ WR Garçon was in the slot where Moncreif was. This line up where I noticed this was in first place. Later in the night after the Sunday night game a line up appeared out of nowhere in a top spot that had a list of players all with high scores. Some of those players were not starters but had a good game! I compared my lineup’s standings to the first place line up quite often and this new line up was nowhere around until the end of the game! I’m having major doubts about the legitimacy of draft kings! This is something that needs to be investigated (especially line up manipulation activity at draft kings) immediately. Along with the line up manipulation, I believe that a lot of the players in contests are computer generated with computer generated line ups. A lawsuit shout also be filed.

  22. Cheated by draft kings says:

    Draft kings is a f#cking scam. I signed up to do an mma fantasy league. I literally picked every single winner except for one. Low and behold, I find out that they cancelled all of the mma leagues because of a “data integrity” issue. Such BS. I’m never using this garbage again.

    You would think that they would provide credits or something to apologize for their screw up that probably cost me a few grand. But instead, they think that they can satisfy me with refunding one entry fee even though I paid for two entries.

    Draft kings already has multiple pending lawsuits against it because of fraudulent practices and I wouldn’t be surprised to see more. Stay away from draft kings.

  23. steve johnson says:

    Have you ever noticed that most leagues are not anywhere near filled and then all of a sudden about 20 min before it starts it gets filled… This is draftkings computer generating lineups… it is physically impossible to submit 1000 entries in one daily league and then you will see the winning lineups are all by the same user name with the same lineup… no real person would do that.. computer generated lineups that are based on a program.. less than 2% of contestants are winning more than 90% of the money… all lineups are locked before the contest starts so technically it still is random.. but draftkings makes it nearly impossible for the common player to win any significant money.

  24. Thomas Lohn says:

    FanDuel is a joke you cannot actually get ahold of anybody that works there they have a a company that gets all their messages and you all you get is a free form message back that says that they’re experiencing high volumes of calls as far as the frequent player points they never release them I played a hockey contest last night they had no goalies posted and I lost my money they never posted any I sent messages and no one ever answered at all

  25. Harry James says:

    I’ll start watching the entry levels. I just know when I select a team the players just didn’t perform. I still play on.

  26. Donte says:

    Draftkings and Fanduel will make an appearance on American Greed some day mark my word.

  27. joseph roulo says:

    Can anyone tell me why when I look at other teams line-ups they say the player has not started yet, yet they do not show the players name or the players team?????????????????????????????????????????????????????????????????????????????? somethings fishy

  28. Tim says:

    You guys complaining about it being rigged sound like the online poker riggies. Why do you even gamble ?, it is tough to win , and top notch gamblers have caught on to this and are responsible for the multiple entries you see. Other than being very hard to win it is legit. I trust a sporting event over any other possible form of Gambling. Picking a winning team is not easy as the margins are very tight and the vig is high around 13% I reckon. But , no it is not rigged .

  29. Ripped Poncho says:

    Relatively new to Draft Kings (3 weeks). Started with $100 and have it up to $180. Agree that the “Match your Deposit” promotion is a little misleading. It shows that I have the ability to receive my free $100 but requires me to spend an additional $900 to unlock the funds. All in all I’m liking the competition/concept. My only questioning/suspicion is the rush of registrants within the last 10 minutes of a contest starting? Example, a basketball contest with a 115,000 person limit will have only 68,000 entrants registered 20 minutes before game time. Then, in the last 10 minutes miraculously fills up and sells out completely? Anyways, not betting the house or kids college fund, just spending a few bucks in hopes of winning a few more…Cheers!

  30. Angel says:

    I think there is alot of suspicious on this side. I think it’s computer generated top lineup score everytime. I think it’s already preprogramed for top point score at any time. It’s kind a very obvious that the perfect lineup it’s always because the preprogrammed winners is the computer. They can just type in any point amount and the computer will generate a new username with the amount of point you ask for. Some of this lineup makes you think of where in the world someone pick a third receiver or a back up QB to have a monster game with perfect FP on a lineup.

  31. Mandy says:

    Something fishy happened to me tonight. Immediately after the Boston Bruins game I was checking my scoresheet. I was in 68th with a points total of over 37 with one player remaining for the 8pm game between Chicago and Edmonton. While I was looking at my scoresheet I noticed that two of my players scores flashed and my total went down to 35. These players were already listed as Final under the game column and they were forwards, not goalies so how in the world would their scores go down after the game had finished? I was dropped to 140th place and there were NO other games at all in process. There was about a 20 minute wait for the 8pm game to start. To make this more confusing, before the 8pm game started I checked again and I was now in 318th place. How did I go from 68th to 318th place when there were NO… I repeat NO games… in process?

  32. dk12 says:

    Just cause you don’t win don’t be a sore lower you lose what you put in I’ve been playing for 2 weeks and only deposited 5$ and they give you a free 3$ entry and I’ve won 10$ doubled my 5 bucks I feel it’s not a scam. Keep up the good work draftkings

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