Online Sports Betting Addiction
Overview
Defendant: Financial and emotional harm from deliberately addictive online sports gambling platforms
Injury: Sportsbook platforms including FanDuel and DraftKings
Practice:Â Mass Tort
Latest Update: March 25, 2026 — Lawsuit filed in Massachusetts state court against DraftKings and FanDuel.Â
In a suit filed in Suffolk County Superior Court, the plaintiff alleges that gambling apps are designed to cause addictive behavior.Â
Case Team
PARTNER
Edward A. Wallace
PARTNER & CONTACT ATTORNEY
Timothy E. Jackson
CONTACT PARALEGAL
Yulissa Izaguirre
Lawsuits Filed Over Online Sports Betting Platforms:
Learn More About Your Legal Rights
Wallace Miller is pursuing litigation against DraftKings and FanDuel alleging that they designed their apps to be deliberately addictive and deceived customers about the risks.Â
Gambling addiction is a serious disease that can have devastating emotional and financial consequences for individuals and their loved ones. Our legal team is fighting to help those impacted by predatory gambling companies receive the closure and compensation they need to move forward.Â
Injury
What is gambling addiction?
Addiction is often associated with a physical dependence on a chemical substance, such as alcohol or drugs. However, behavioral addiction can lead to side effects and negative consequences that are just as severe.Â
The American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders (DSM-5) classifies addiction to gambling in the same category as substance addiction. Symptoms of gambling disorder include:Â
- A preoccupation with gamblingÂ
- Wagering increasing amounts of moneyÂ
- Unsuccessful efforts to control or stop gamblingÂ
- Restlessness or irritabilityÂ
- Damage to one’s job or relationshipsÂ
- Hiding gambling from othersÂ
- Financial desperationÂ
- Suicidal ideationÂ
- Substance abuseÂ
- DepressionÂ
- AnxietyÂ
- Chronic stressÂ
Research has found that individuals diagnosed with gambling disorder have dramatically higher rates of suicide attempts than the general population. Among those who show signs of problem gambling, 1 in 5 attempt suicide.Â
Photo © Pixabay
Photo © Pixabay
The effects of gambling on the brain
Gambling stimulates the brain’s reward system by releasing dopamine in a way similar to the effect of drugs and alcohol. Over time, an individual builds up tolerance to gambling and engages in more risk-taking behavior. This leads to the dysregulation of dopamine pathways, impaired cognitive control, and altered reward processing.Â
Digital technology amplifies the addictive potential of gambling by increasing the availability and frequency of gambling activities. Because betting platforms are constantly available on phones and computers, it’s much easier for individuals to form gambling habits.Â
Damages in online sports betting addiction lawsuits
Damages refer to the compensation that someone receives through a civil lawsuit. This compensation is designed to make up for the harm caused by the defendant. Damages in gambling addiction lawsuits may include:Â
- Financial losses incurred through gamblingÂ
- Lost wages and loss of future earning potentialÂ
- Medical expenses, including therapy costsÂ
- Compensation for emotional distressÂ
Emotional distress damages recognize the human cost of gambling addiction. They may be awarded to help compensate plaintiffs for pain and suffering, loss of reputation, and other non-economic factors.Â
Plaintiff & Defendant
What are sports gambling platforms?
A sports gambling platform, also known as a sportsbook, is a platform or company that allows individuals to bet on sporting events. These can operate in person, but online sportsbooks increasingly dominate the industry.Â
The two largest sportsbooks, DraftKings and FanDuel, together make up 65% of online sports gambling revenue in the U.S. DraftKings, headquartered in Boston, became publicly traded in April 2023 and made $6.05 billion in revenue in 2025. FanDuel, a wholly owned subsidiary of the Irish corporation Flutter Entertainment, made more than $5.79 billion in 2024.Â
Sportsbook revenue has increased dramatically in recent years. The combined revenue of these platforms in the U.S. grew to $10.92 billion in 2023, more than 44% up from the previous year. A 2024 research study found that the majority of sports betting revenue comes from individuals struggling with addiction: in the population studies, less than 2% of users categorized as problem gamblers made up 51% of all sports betting revenue.
Online platforms designed to be addictive
Defective product lawsuits filed by plaintiffs against DraftKings, FanDuel, and other online gambling platforms allege that these products are designed to be addictive through features including:Â
- Algorithms that track all user activity and capitalize on moments of vulnerability.Â
- Claims of “risk-free” bets that require additional gambling or deposits to access.Â
- Customized reminders to bet, including push notifications, emails, and personalized text messages.Â
- VIP programs for the highest-volume bettors that reward continued problem gambling.Â
- Near-miss engineering that takes advantage of the brain’s sense of reward from almost winning.Â
- “Dark patterns,” or strategies designed to trick consumers into gambling more money. These include instant, convenient deposits combined with difficult, time-consuming withdrawals.Â
- AI-driven personalization to capitalize on impulsive moments.Â
- Microbets and in-game wagering that allow users to place hyper-specific bets on live events. These create a constant cycle of reward and loss and worsen problem gambling.Â
- Persistent, targeted ads on social media platforms.Â
These strategies take advantage of the higher addictive potential of online betting. With gambling apps constantly available, people are encouraged to bet quickly without taking the time to think. Online gambling also makes it easier to conceal gambling addiction from others, while the lack of an in-person social environment removes inhibitions.Â
Photo © Pixabay
Lawsuits filed against online sports betting platforms
A number of lawsuits across the U.S. have been filed against sportsbooks including FanDuel and DraftKings in state and federal court. These sports betting lawsuits allege that the companies designed their apps to be addictive, failed to warn consumers about the risk of addiction, and pushed deceptive and misleading ads.Â
Plaintiffs in these litigations are seeking damages for psychological injuries associated with gambling disorder. They claim that the operating companies were fully aware of the patterns of problem gambling and, instead of helping their customers, pushed gamblers to increase their investments and worsened their gambling addiction.Â
Additional allegations hold that gambling platforms targeted underage users despite legal restrictions. The lawsuits claim that gambling apps directed ad campaigns at teenagers, devised on-ramps for adolescents to use their apps, and ignored loopholes that allowed underage individuals to place bets.Â
Photo © Pixabay
Illegal underage use of online sports betting apps
Despite age restrictions in states that have legalized online sports betting, underage users still make up significant portion of sportsbooks’ userbase. A review published in 2024 found that one-third of adolescents in the U.S. reported gambling, with more than a quarter of those individuals engaging in problem gambling behavior. Early adoption of gambling has been linked to more severe gambling problems later in life.Â
While underage gambling is generally illegal, adolescents may access the platforms by using the information of older friends or relatives or by inputting false information about their age. Recent lawsuits allege that platforms like FanDuel and DraftKings deliberately target advertisements towards teens in order to engage them in gambling as early as possible and fail to adequately monitor underage use of their apps.Â
Am I eligible for a gambling addiction lawsuit?
If you have lost money gambling on an online betting platform, you may be eligible for a gambling addiction lawsuit. Â
Adults may be eligible for a lawsuit if they:
- Created and used a DraftKings or FanDuel account.Â
- Sought or are seeking help for gambling addiction.Â
- Suffered significant losses through gambling.Â
- Received a mental health diagnosis for issues including:Â
- Gambling disorder or addictionÂ
- DepressionÂ
- AnxietyÂ
- Suicidal ideation or suicide attemptsÂ
- Other diagnoses associated with gambling
Landscape
New industry of online sports betting
In 2018, the U.S. Supreme Court struck down a federal ban on online sports betting that had restricted betting on sporting events to the state of Nevada. 39 states have allowed sports gambling since then, with 30 permitting mobile betting. Online gambling dominates the U.S. market, with about 80% of bets going through mobile devices.Â
Since then, the sports gambling market has exploded, with sportsbooks like DraftKings and FanDuel making billions of dollars in revenue. Betting platforms and apps are widely advertised on social media and during televised sporting events. According to a 2024 survey, 1 in 5 Americans have an online sports betting account and 90% use an app on their phone. Gambling rates have risen significantly in younger adults, with more than 50% of millennials and Gen Z individuals surveyed participating in real-time sports gambling during games.Â
Regulations on sports betting apps
Because the online sports betting industry is relatively new, regulations are still being developed across the country. State consumer protection laws generally restrict advertising and prohibit deceptive business practices, but variations by state make litigation more complicated.Â
Sportsbooks have generally avoided implementing gambling addiction safeguards in the U.S. Flutter, the parent company of FanDuel, implemented measures in the U.K. including online slot stake caps, limits on deposits for bettors under 25, and changes on their VIP program. However, none of these practices have been rolled out in the U.S.Â
Photo © Pixabay
Q&A
What is a sportsbook?
A sportsbook is a platform or company that allows individuals to bet on sporting events. Online sportsbooks, like DraftKings and FanDuel, dominate the sports betting industry in the U.S.Â
What is gambling addiction?
Gambling addiction is a behavioral addiction that can lead to serious long-term consequences. Gambling stimulates the brain’s reward system by releasing dopamine in a way similar to the effect of drugs and alcohol. Over time, an individual builds up tolerance to gambling and engages in more risk-taking behavior. This leads to the dysregulation of dopamine pathways, impaired cognitive control, and altered reward processing.Â
Who can file a lawsuit against an online sports betting platform?
Individuals may be eligible if they created and used a DraftKings or FanDuel account and experienced significant financial losses, and/or received a mental health diagnosis.Â
Timeline
03.25.2026
Lawsuit filed in Massachusetts state court against DraftKings and FanDuel.Â
In a suit filed in Suffolk County Superior Court, the plaintiff alleges that gambling apps are designed to cause addictive behavior.Â
3.24.2026
Pennsylvania plaintiffs sue DraftKings, FanDuel, NFL, and others for gambling addiction.Â
In a new sports betting addiction case, plaintiffs in Philadelphia County Court of Common Pleas allege that online gambling platforms engaged in predatory and deceptive marketing practices.
04.03.2025
City of Baltimore sues online gambling platforms for deceptive practices.Â
In a lawsuit against DraftKings and Flutter Entertainment, the parent company of FanDuel, the city of Baltimore has alleged that their strategies exploit vulnerable bettors.Â
01.08.2025
Lawsuit filed against DraftKings and other gambling companies in the Northern District of Illinois.Â
Plaintiffs have filed a suit in Illinois alleging that DraftKings and other companies created deceptive promotions and targeted underage consumers.Â
02.2024
Study finds that 1 in 5 Americans have a sports betting account.Â
A study by the Siena College Research Institute (SCRI) and St. Bonaventure University’s Jandoli School of Communication has found that approximately 20% of Americans have a sports betting account.Â
12.2023
Lawsuit filed against DraftKings in Massachusetts.Â
A lawsuit has been filed in Massachusetts Superior Court against DraftKings alleging deceptive promotions.Â
10.2020
Illinois Gaming Board disciplines DraftKings.Â
The Illinois Gaming Board found that Draft Kings did not promptly disclose the agreements it had made to serve as a sports gambling services provider at Wrigley Field.Â
2018
Supreme Court strikes down decades-long ban on sports betting.Â
In Murphy v. Nat’l Collegiate Athletic Association, the Supreme Court invalidates a decades-long federal ban on sports betting.Â
