A recent lawsuit filed in Pennsylvania's state court has accused the NFL, FanDuel, and DraftKings of fostering gambling addiction and causing financial losses through their real-time betting products and data.
The complaint was submitted to the Philadelphia County Court of Common Pleas by two individuals, Christopher Sage and Terry Thompson. They assert that the companies have facilitated and promoted highly addictive betting methods, particularly through in-game “micro-betting.”
The lawsuit claims that the defendants utilized live NFL data feeds to provide a “known addictive product” and developed betting platforms aimed at maximizing user engagement via real-time wagering, analytics, and tailored features.
Lawyers representing the plaintiffs argue that these applications have transformed into “a relentless, always-on addiction-amplifying machine” with a sports gambling interface that is unprecedented in its speed and personalization.
Central to the case is micro-betting, which allows users to place bets on swift in-game events. The complaint states that such bets can be made on an almost unlimited range of occurrences during a sporting event, with odds that fluctuate rapidly as the game progresses.
This betting format, which can conclude within seconds, is likened to gambling on slot machines, as it offers “no off-ramps” or “pauses in the action,” thereby promoting continuous betting.
The filing notes that live betting constitutes approximately 50% of all wagers placed on DraftKings and FanDuel platforms.
The plaintiffs contend that both men had previously gambled without issues for years until they began using sportsbook applications. “That all changed once they started using the FanDuel and DraftKings Sportsbook Apps,” the complaint indicates. “Within just a few years of their first micro-bets on these apps, the plaintiffs nearly lost everything.”
According to the lawsuit, the combined losses exceeded $2 million, with Thompson losing about $1.83 million and Sage around $175,000 after wagering over $2 million.
The complaint also claims that sportsbook VIP hosts encouraged ongoing betting by offering incentives such as luxury gifts, event tickets, and travel. The attorneys allege that Thompson's host was aware of his problematic behavior, as she had suggested he take breaks from betting after experiencing losing streaks.
In one instance mentioned in the filing, a host reached out to the plaintiff, saying: “[W]hat do we think about taking a timeout and enjoying the holidays with the family and starting fresh after the new year?”
Despite such communications, the lawsuit alleges that hosts continued to engage users, providing additional incentives and promotions.
The plaintiffs further claim that the companies have “weaponized” technology, allowing “sports gamblers to place bets from anywhere, 24/7,” while also asserting that operators can gather and analyze detailed behavioral data on each customer.
The complaint argues that the design and speed of micro-betting products can “hijack gamblers’ brains and keep them immersed in ceaseless betting action,” leading to compulsive behaviors, such as “betting nearly 24 hours a day, seven days a week.”
Other entities, including Genius Sports and the NFL, are also accused of facilitating micro-betting and enticing gamblers to become addicted. These companies are alleged to engage in such practices to enhance their own profits.
The lawsuit includes claims of negligence, defective design, failure to warn, and unfair trade practices, seeking damages, legal fees, and modifications to the defendants’ practices.
As of now, the defendants have not publicly addressed the allegations.