If you bought Disneyland’s now-defunct Dream Key annual pass and felt like you didn’t get what was promised, you’re not alone—and now, there’s finally a payout.
After nearly four years, payments from the $9.5 million class action settlement against Walt Disney Parks and Resorts are reaching eligible passholders. The case stemmed from a lawsuit filed by Jenale Nielsen in 2021, who claimed Disney misrepresented the “no blockout dates” promise made when selling the Dream Key pass for $1,399.
What Was the Lawsuit About?
Nielsen said she purchased the Dream Key based on its advertised benefit of allowing reservations without any blackout dates. But soon after, she tried booking visits to Disneyland and California Adventure—only to find that weekends and many other days in November 2021 were already blocked out for Dream Key users.
However, guests could still buy single-day tickets for those same days, which Nielsen’s lawsuit argued was deceptive. Her legal team claimed Disney was intentionally restricting Dream Key reservations to drive more single-ticket sales.
“The problem was that Disney had decided to block out otherwise available park reservations so that they were only available to new purchases,” the lawsuit read.
Disney denied wrongdoing but chose to settle in July 2023, avoiding a trial. As part of the agreement, Nielsen will receive $5,000, and more than 100,000 Dream Key passholders are now getting partial refunds.
When Are Payments Going Out?
The official payment date was June 14, and eligible recipients are now seeing checks and digital deposits arrive—either by mail, PayPal, Venmo, or direct deposit, depending on what they selected.
One Reddit user wrote:
“$22.85 on my check out for my Dream Key I had at the time. I’m actually not complaining; I’m glad someone filed the suit and thanks to that, the Magic Key system was improved a bit more.”
Another mentioned delays with digital payouts:
“I did Venmo and it’s taking FOREVER. My husband did Venmo too and hasn’t received it yet either. Our 8-year-old son got his check already.”
So yes—even kids who were passholders at the time may be receiving payments if they were included in the class action.
How Much Money Are People Getting?
The average payout for each Dream Key holder is about $67.41, though the exact amount may vary slightly. That’s still less than a one-day ticket to Disneyland, but for many guests, it’s about principle more than price.
The settlement site notes that eligible participants didn’t need to take any action if they bought the Dream Key between August and October 2021—they were automatically included and should have received notice by email or mail.
What’s the Current Status of Magic Keys?
The Dream Key was discontinued shortly after the controversy, but Disneyland’s annual pass program—now called Magic Key—still exists, albeit with more detailed terms around blockout dates and reservation limits.
As of now, the following Magic Key passes are offered (availability may vary):
1. Inspire Key – $1,649
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No blockout dates
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Free parking
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6 reservations max
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Available to California residents
2. Believe Key – $1,249
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Limited blockout dates
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50% off parking
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6 reservations
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Not always on sale
3. Enchant Key – $849
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Frequent blockout dates
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4 reservations
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CA residents only
4. Imagine Key – $499
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Most blockout dates
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2 reservations
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Exclusive to Southern California residents
Each Magic Key pass still requires advance reservations to enter the parks, and Disney has kept firm control over how many slots are available to each pass tier.
While the payout may seem minor in terms of actual dollars, the Nielsen v. Disney lawsuit highlighted a major gap between expectation and reality in how Disneyland marketed its annual passes. For many fans, this case was about holding the company accountable—and it resulted in clearer communication and more defined rules around reservation availability.
If you were a Dream Key holder and haven’t seen your payment yet, keep checking your mail, email, or digital payment app. And if you’re shopping for a new Magic Key, read the details carefully. Blockout dates still exist—they’re just easier to understand now.
They need to do the same for the Passholder in Florida! Why are Passholders the ONLY ones that have to make reservations! The prices keep going up and there are not Passholder incentives anymore. We used to get early previews to openings and events but that stopped after Covid. There are never enough of the Passholder magnets, and you have to stand in line for ever to get one. They used to send magnets when you renew your pass but haven’t gotten one of those in a couple years. Local Passholders in Florida keep the money flowing during the off seasons and get not appreciation. And if they think we don’t spend enough money in the parks they need to follow us around and see how much we spend!