Chavdar Vasilev is a gambling news writer with several years of experience in the iGaming industry. He started creating promotional content but soon found he loved reporting on the industry itself. Since then, he’s delivered...
Read Full BioThe Public Health Advocacy Institute (PHAI) is suing Caesars Palace Online Casino and its retail partner Harrah’s Philadelphia Casino over the platform’s welcome bonus in Pennsylvania, alleging it’s “dangerous, misleading, and illegal.”
Caesars Palace Online Casino in Pennsylvania advertises a welcome bonus for new customers. It states that after they sign up and make their first deposit, the platform will match that sum 100%, up to $2,500 in the form of bonus bets.
Caesars Palace Bonus “False and Misleading”
PHAI, a nonprofit legal research center based at Northeastern University School of Law in Massachusetts, claims that Caesars Palace lures new customers with a false and misleading promise of a “$2,500 deposit match.”
The plaintiff alleges that only in the fine-print terms and conditions does the platform disclose that a new customer who plays blackjack must gamble at least $375,000 within their first seven days to unlock the reward.
PHAI highlights that Caesars and Harrah’s Casino keep all the money lost by new customers during the first seven days. It adds that a blackjack player cannot withdraw any funds or winnings unless they’ve gambled the $375,000.
The lawsuit alleged that Caesars and its partners have “effectively rewritten” Pennsylvania laws by requiring customers to gamble up to $375,000 before being able to withdraw any winnings. It adds,
“The public is not told that the promotion is designed to snare new customers in a ‘wild chase of action,’ where the bonus is unattainable and therefore impossible to win.”
The lawsuit seeks an injunction to stop the promotion and similar playthrough bonuses. It also seeks statutory damages and attorneys’ fees.
How did PHAI arrive at the $375,000 figure based on the $2,500 bonus?
At the heart of the lawsuit is a concept familiar to many online gamblers: playthrough requirements. The term is also known as wagering or rollover requirements.
Playthrough requirements mean how much a player must bet before they can unlock bonus funds and associated winnings.
For example, a 1x wagering requirement on a $10 bonus means you must bet $10 to unlock that bonus. At the same time, a 20x requirement on that same $10 bonus means you must bet $200 ($10 x 20) to unlock it.
There are rare instances of bonuses at online casinos and sportsbooks that do not have playthrough requirements.
At online casinos, the wagering requirements usually depend on the type of game. Slots typically have the lowest requirements, while table games, such as blackjack, have the highest requirements.
So, looking into the terms and conditions of the Caesars Palace Online Casino welcome bonus, the fine print says:
- Playthrough requirements on slots are 15x.
- The playthrough requirements for video poker are 30 times the bet amount.
- Wagering requirements on all other casino games are 75x.
To receive the maximum $2,500 bonus, a customer must wager $37,500 on slots ($2,500 times 15). That increases to $75,000 for video poker ($2,500 times 30). For games such as blackjack and roulette, that amount is $375,000 ($2,500 times 75).
Additionally, the terms stipulate that the player must wager the required amount within seven days of making the deposit. If the customer does not meet the requirement, they do not receive the bonus or any partial amounts.
It’s essential to note that claiming the welcome bonus is not mandatory for new players joining an online casino or sportsbook.
PHAI Has an Ongoing Lawsuit Against DraftKings
PHAI’s lawsuit against Caesars Palace Online Casino is not the first instance where the organization has taken legal action over bonus marketing practices in online gambling
In December 2023, it filed a class-action lawsuit in Massachusetts against DraftKings on behalf of two state bettors.
The lawsuit challenged the platform’s widely advertised “$1,000 signup bonus” as deceptive and unfair. The fine print of that offer included an initial deposit of $5,000. Also, players must wager $25,000 over 90 days to unlock the bonus (essentially a 25x playthrough requirement).
The plaintiffs alleged that they would need to wager $276 per day for 90 days to get $1,000. The case is still ongoing, with a judge denying DraftKings’ motion to dismiss in August 2024.
The Massachusetts case is one of several against DraftKings regarding allegedly deceptive practices related to bonuses and the language used in them. The platform’s use of phrases like “free bets” and “no sweat” has resulted in lawsuits in several states. Those include Maryland, New York, Illinois, and most recently, Pennsylvania.
Massachusetts Gaming Commission Also Under Fire
Operators are not the only ones facing legal action by PHAI.
In October 2024, it sued the Massachusetts Gaming Commission (MGC). In that lawsuit, it asked the court to compel the regulator to adhere to state law and turn over data that casinos gather to track player behavior.
Under Section 97 of the Expanded Gaming Act, casino operators are required to submit anonymized data on player behavior to the commission. MGC must then share it with researchers.
The lawsuit alleged that the regulator had never collected the data.
