A recent lawsuit in Pennsylvania has been filed against DraftKings, FanDuel, and the NFL, accusing them of creating microbetting products that foster gambling addiction through rapid and continuous wagering.
The Public Health Advocacy Institute (PHAI) initiated the lawsuit on behalf of plaintiffs Christopher Sage and Terry Thompson, who claim to have developed serious gambling disorders after using the online sportsbooks.
The core argument of the lawsuit suggests that these online betting platforms are inherently flawed and dangerous, particularly due to their live, in-game microbetting features.
According to the complaint, the operators have exploited advancements in mobile technology and artificial intelligence to direct users towards microbetting.
Microbetting is defined in the lawsuit as placing bets on a virtually endless range of events during a game, allowing users to wager continuously as odds change in real time, effectively removing traditional barriers related to time, location, and pacing. This format permits bettors to gamble “from anywhere, 24/7.”
The lawsuit states, “With live in-game microbetting, every half, every quarter, every minute, every second, every pitch, every play, every shot becomes a new gambling opportunity on which customers can repeatedly wager as the game progresses.”
The complaint also draws parallels between microbetting and slot machines, arguing that not all forms of gambling carry the same risks. It notes that a friendly poker game poses less danger compared to the fast-paced nature of slot machines.
It emphasizes that the rapid speed and frequency of microbetting significantly heighten the risk of addiction, akin to the dangers associated with slot machines. Each live in-game prop bet concludes within minutes or even seconds, reinforcing the notion that these bets are comparable to those made on slot machines.
Furthermore, the lawsuit claims that microbetting establishes a system devoid of breaks or pauses, keeping users trapped in a continuous cycle of betting.
The complaint argues that these design elements are not accidental but rather intentional, aimed at maximizing user engagement and promoting repeated betting.
Additionally, the lawsuit implicates Genius Sports and the NFL, asserting that they play a pivotal role by providing the real-time data essential for microbetting. The complaint states that without this data, sportsbooks would be unable to implement microbetting.
It further claims that Genius Sports and the NFL not only facilitate but also profit from microbetting through their provision of officially licensed real-time game and player data.
DraftKings and FanDuel have previously noted that live betting constitutes about 50% of the total wagers placed on their platforms.
The filing also points out the NFL’s equity stake in Genius Sports, revealing that in 2025, Genius Sports earned $126.1 million in commissions from live in-game microbetting, which represented approximately 19% of its annual revenue.
The plaintiffs assert that the defendants have profited by transforming casual sports fans and recreational gamblers into compulsive gambling addicts through the design of their apps.
They claim that the two plaintiffs, who enjoyed watching sports and occasionally placed bets for nearly twenty years without issue, saw their gambling behavior escalate dramatically.