DraftKings, NFL sued for promoting constant addiction
The US gambling industry is facing a new and severe legal challenge. The Public Health Advocacy Institute (PHAI) has filed a lawsuit in Pennsylvania on behalf of two citizens who allege they developed severe gambling disorders. The accusation claims that operators like DraftKings and FanDuel, in complicity with the NFL and data provider Genius Sports, have intentionally designed their platforms to function as tools that amplify addiction. According to the court document, these applications use artificial intelligence and mobile technology to trap users in a cycle of non-stop gambling.
The core of the lawsuit focuses on the concept of microbetting. This format allows live bets to be placed on almost insignificant events within a game, such as the outcome of the next play, a specific pitch, or every minute on the clock. The plaintiffs argue that this modality removes traditional gambling barriers, such as time and location, allowing betting 24 hours a day. The accusation is forceful in comparing this design to that of slot machines, highlighting that the speed and frequency of microbets dramatically increase the risk of developing compulsive behaviors.
The fundamental role of data and the NFL's involvement
A relevant aspect of this process is the inclusion of the NFL and Genius Sports as responsible parties. The lawsuit claims that, without the real-time data supplied by the league and its technology partner, microbetting simply would not exist. It is alleged that both organizations not only facilitate this activity but also directly benefit from it. In fact, it is highlighted that the NFL holds an equity stake in Genius Sports and that the latter generated over $126 million in live betting commissions in 2025, representing nearly a fifth of its annual revenue.
For operators, live betting has become vital. DraftKings and FanDuel have previously acknowledged that in-game wagers account for approximately 50 percent of all bets on their platforms. The plaintiffs, Christopher Sage and Terry Thompson, describe a devastating escalation in their behavior. Both claim to have been occasional bettors for two decades without problems, until the shift to mobile apps and constant access to microbets led them to lose their savings, homes, and family stability in just a few years.
VIP Programs and Regulatory Scrutiny in the United States
The lawsuit also scrutinizes the VIP programs of sportsbooks. Representatives of these companies are accused of maintaining direct contact with players who showed signs of addiction, offering them incentives such as trips, gifts, and exclusive promotions to ensure they continued betting. Among the charges filed under Pennsylvania law are design defects, negligence, unfair trade practices, and failure to warn about product risks.
This litigation comes at a time of maximum scrutiny for the sector in North America. In New Jersey, legislation is moving forward to ban microbetting, while in New York, the complete elimination of live betting is being debated. Other states like Massachusetts and Colorado are considering banning specific types of proposition bets. PHAI already has a history in these types of legal battles, having previously challenged DraftKings over its deposit bonuses and the Massachusetts Gaming Commission over access to data on player behavior.
Tags: United States, USA, NFL, Fanduel, Draftkings, Genius Sports