What Are Gambling Addiction Lawsuits?
Gambling addiction lawsuits have been filed by bettors who claim companies like DraftKings and FanDuel intentionally built their apps to encourage compulsive wagering — and then failed to step in even after spotting the warning signs.
These lawsuits argue that sportsbooks use in-house data to track how customers behave, then use that information to keep high-value or losing bettors engaged rather than protect them.
Common allegations asserted in sports betting addiction lawsuits include:
- Data tracking: Used algorithms and in-app data, including how quickly a user returns to bet after a loss, to identify and target vulnerable, high-spending bettors
- VIP programs: Assigned personal account managers to high-spending bettors who send gifts, personalized messages, and incentives to keep them wagering
- Misleading promotions: Advertised "risk-free" or "no sweat" bonus bets with complex fine print that made betting look safer than it was
- Ignored limits: Kept sending promotions and push notifications to users who had already lost heavily, flagged a gambling problem, or tried to self-exclude
- Failure to honor exclusions: Failed to honor state self-exclusion and problem gambling lists
Gambling disorder diagnoses have risen 61% in states that have legalized sports betting, according to research published in JAMA Internal Medicine.
"They develop and personalize themselves to the individual user. When you log in, the algorithm knows who you are and what you're interested in. It pops up, so it becomes more addictive for that person."
– Sports Gambling Addiction Lawyer
If you or a loved one has been harmed by a sports betting platform, we may be able to help you take legal action. At Sokolove Law, our firm has recovered more than $10.5 Billion total for clients nationwide.
Get the Help You Deserve
We may be able to help you file a sports gambling addiction lawsuit and seek justice on your behalf. Get started now with a free case review.
Companies Named in Sports Gambling Lawsuits
Since a 2018 U.S. Supreme Court ruling struck down the federal ban on state sports betting, the industry has grown into a multibillion-dollar business — and lawsuits against it have grown along with it.
Sports betting gambling lawsuits have been filed against:
- BetMGM
- Caesars Sportsbook
- ESPN Bet
- FanDuel
- DraftKings
One Pennsylvania sports betting lawsuit alleges that FanDuel VIP hosts sent a celebrity video message from MLB superstar Bryce Harper to a bettor who had wagered $18.5 Million with the app and had already lost around $1.5 Million.
Users allege these apps use tactics like time-limited promotions and "risk-free" first bets with complicated fine print to keep people betting well past the point of casual entertainment.
Live in-game "microbetting," which lets users place new wagers on nearly every play, in particular, has been linked to more severe gambling problems than betting placed before a game starts.
Who Can File a Sports Betting Lawsuit in 2026?
You may be able to file a sports betting lawsuit if you developed a gambling addiction, or an existing gambling problem worsened, after using a sportsbook app like DraftKings or FanDuel.
You may qualify for a sports gambling addiction lawsuit if you:
- Suffered severe losses: Bettors who accumulated significant debt or lost large sums of money using a sportsbook app
- Were diagnosed with addiction: Individuals with a formal medical diagnosis for gambling disorder
- Received targeted incentives: Bettors who kept receiving bonus offers or VIP outreach after losing heavily or trying to cut back
- Tried to self-exclude: Users who asked to be excluded or limited but were still marketed to
- Placed bets while a minor: Underage users who were able to open accounts or place bets despite age-verification requirements
There's only a limited amount of time to file a sports betting lawsuit due to laws called statutes of limitations. It's important to speak with a gambling addiction attorney as soon as possible, so you don't miss your chance to take legal action.
Signs of Sports Betting Addiction
Sports betting apps are built for constant access. Bets can be placed in seconds, at any hour, on nearly any live play. That convenience can make it harder to recognize when casual betting has turned into a compulsive pattern.
Signs of sports betting addiction may include:
- Betting more money or more often than you intended
- Chasing losses by placing additional bets to try to win back money already lost
- Lying to family or friends about how much time or money is spent betting
- Feeling restless, anxious, or irritable when unable to place a bet
- Using loans, credit cards, or retirement savings to keep betting
- Neglecting work, school, or relationships because of betting activity
- Failed attempts to cut back or stop betting altogether
Online sports bettors face a much higher risk of problem gambling, and mobile, in-play betting is considered one of the most addictive formats because it removes nearly every natural pause between the urge to bet and the ability to act on it, according to research conducted by the University of New Hampshire.
Online Gambling Addiction Lawsuit News & Updates
Lawsuits against sportsbook apps have picked up steam in recent years, with cases filed by individual bettors, families, and even local governments.
Many of these lawsuits raise questions about how online gambling companies market their platforms, use promotions and incentives to keep users betting, and respond when customers show signs of problem gambling.
Find out about recent developments in sports betting addiction lawsuits:
- August 12, 2026: Members of Congress called on FanDuel to shut down their VIP program after reports that a VIP host sent a personalized celebrity video to a bettor with a documented gambling addiction who had already lost $1.5 Million.
- July 29, 2026: A proposed DraftKings class action lawsuit alleges their new "Predictions" event contracts amount to unlicensed sports betting that let users wager on outcomes without complying with state gambling laws.
- July 28, 2026: FanDuel and DraftKings asked a Pennsylvania court to dismiss a lawsuit alleging their apps are designed to maximize addiction, arguing state law imposes no duty to protect adults from their own legal wagering.
- June 26, 2026: An Illinois man sued DraftKings, alleging the platform fueled a gambling addiction that cost him his job and drained more than $2 Million in assets, including his wedding fund.
- March 26, 2026: Three lawsuits filed in Massachusetts allege DraftKings and FanDuel used data-driven algorithms and VIP programs to identify vulnerable bettors and push them toward increasingly excessive wagering.
- April 3, 2025: The City of Baltimore sued DraftKings and FanDuel, alleging the companies used deceptive promotions with hidden terms, and tailored bonuses and notifications toward bettors more likely to be struggling with addiction.
As sports betting continues to expand across the United States, new lawsuits, court decisions, and regulatory actions may help shape when gambling companies can be held accountable for addiction-related harm.
DraftKings and FanDuel Seek Dismissal of Pennsylvania Sports Gambling Addiction Lawsuit
In July 2026, DraftKings and FanDuel asked a Philadelphia judge to dismiss a lawsuit accusing the sportsbooks of contributing to gambling addiction through in-game microbets, VIP programs, and personalized rewards.
Filed on behalf of two Pennsylvania bettors, the lawsuit alleges they collectively lost nearly $2 Million after their gambling escalated. The complaint claims VIP managers continued offering incentives even after they showed signs of compulsive gambling.
FanDuel has argued that the dispute should be resolved through arbitration rather than in court. The NFL and Genius Sports, which are also named as defendants, have likewise asked the court to dismiss the claims.
Illinois DraftKings Lawsuit Alleges VIP Gambling Tactics
A 32-year-old Illinois man sued DraftKings in June 2026, alleging the sportsbook encouraged his gambling addiction even as his betting escalated and he showed signs of serious financial and personal harm.
According to the DraftKings lawsuit, the bettor wagered over $2 Million after opening a DraftKings account in 2020. The complaint alleges DraftKings designated him a VIP and provided incentives like free bets, deposit matches, and tickets to events.
The lawsuit claims a VIP host contacted the bettor frequently as his gambling intensified. He allegedly drained money saved for his wedding and turned to credit card advances, personal loans, and funds from his 401(k) to continue betting.
Massachusetts Lawsuit against DraftKings and FanDuel Filed Over Allegedly Addictive Technology
In March 2026, a lawsuit filed in Massachusetts accused DraftKings and FanDuel of designing their sports betting apps to encourage addictive gambling behavior and using customer data to keep vulnerable users betting.
The FanDuel and DraftKings lawsuit alleges the sportsbooks track betting patterns and use algorithms to determine when individuals may be most susceptible to placing additional wagers, such as late at night or after a significant loss.
The bettor's activity allegedly escalated from relatively small recreational wagers to more than $1 Million in annual bets. The companies are also accused of using VIP managers who offered incentives as his gambling increased.
Baltimore Files FanDuel and DraftKings Lawsuit
The city of Baltimore sued DraftKings and FanDuel parent company Flutter Entertainment in April 2025, alleging the sportsbooks used deceptive practices to attract bettors and keep customers with signs of problem gambling placing wagers.
The DraftKings and FanDuel lawsuit claims the companies used promotions, extensive customer data, personalized incentives, and VIP programs to encourage frequent betting.
Baltimore alleges the sportsbooks could use this same data to identify customers showing signs of gambling addiction but instead used it to determine which bettors were most likely to continue wagering.
"These companies are engaging in shady practices, and the people of our city are literally paying the price."
– Baltimore Mayor Brandon Scott
If you believe an online sportsbook encouraged you to continue betting despite signs of problem gambling, you may have legal options.
How to File a Sports Gambling Addiction Lawsuit
At Sokolove Law, we strive to make filing a sports betting addiction lawsuit as easy and stress-free as possible. Our team can review your situation, determine whether you may have a claim, and help you understand your legal options.
Our sports betting addiction lawyers can:
- See if you qualify for a sports gambling addiction lawsuit during a free case review
- Gather evidence, like betting history, account statements, and medical records, to build your case
- File sports app claims with any companies that may have caused you harm
- Negotiate gambling addiction lawsuit settlements with the sportsbook on your behalf
- Take your case to trial to pursue compensation from a verdict if a settlement is unable to be reached
When you work with our sports betting addiction lawyers, we handle every step of the legal process, so you can focus on your recovery and moving forward.
What Can a Sports Betting Compensation Claim Help Pay For?
Compulsive sports betting can cause financial losses that extend far beyond the money wagered. A gambling addiction may lead to mounting debt, lost income, treatment costs, and emotional distress for the bettor and their family.
A sports betting compensation claim may seek to recover damages tied to these losses, particularly when there is evidence that a sportsbook encouraged or exploited harmful gambling behavior.
Gambling addiction lawsuit settlement amounts may help cover:
- Financial damages: Recovery of direct money lost and debt accumulated from compulsive betting
- Medical costs: Compensation for therapy, counseling, or inpatient addiction treatment
- Lost wages: Payment for job loss or reduced work performance tied to the addiction
- Pain and suffering: Compensation for the emotional and psychological toll of the addiction
Every case is different, and a gambling addiction lawsuit payout will depend on factors like the severity of the addiction, the strength of the evidence, and how directly the sportsbook's conduct is tied to the harm suffered.
Gambling Addiction Statistics
Sports betting has expanded rapidly since 2018, and so has concern about the number of bettors struggling to control their gambling.
At the same time, lawsuits are raising questions about how sportsbook companies may use technology and customer data to encourage continued betting.
For someone struggling with compulsive gambling, these tactics may make it even harder to stop. Recent statistics help illustrate the scope of gambling addiction and the risks associated with online sports betting.
Find out about the latest gambling and sports betting addiction statistics:
- Approximately $167 Billion was wagered on sports in the U.S. in 2025, according to the American Gaming Association.
- An estimated 2.5 million U.S. adults are estimated to have experienced a severe gambling problem, with another 5 to 8 million considered at risk, according to the National Council on Problem Gambling (NCPG).
- Nearly 20 million U.S. adults reported experiencing at least one problem gambling behavior “many times” in the previous year, NCPG reported.
- Bankruptcies and credit-card delinquencies increased by about 25% in states that legalized online sports betting, according to a UCLA study.
- Americans wagered $121.1 Billion on sports in 2023, up from $4.9 Billion in 2017.
- About 94% of 2023 wagers were placed online, according to a study published in the same journal.
- A 2026 study of live sports-betting features found that bettors at higher risk of gambling harm used in-play betting and instant cash-out more frequently. Higher-risk bettors were also more likely to make an immediate deposit to qualify for a promotional offer.
- Searches for gambling addiction help were 23% higher than expected nationwide following the 2018 Supreme Court decision that paved the way for expanded legal sports betting.
- As many as 7.3 million Google searches related to gambling-addiction help-seeking occurred nationally in the 73 months following the decision.
- One-third of U.S. adults ages 21 to 44 surveyed in 2026 said they had placed a sports bet before turning 21. Across all adults 21 and older, 23% reported betting on sports before age 21.
Sports gambling addiction statistics help explain why so many families are taking a closer look at how sportsbook apps are designed.
Get Help from Our Sports Gambling Addiction Attorneys
Countless bettors and their families have been affected by sports betting addiction — and the companies behind these apps may have known the risks all along.
Our sports gambling addiction lawyers are prepared to help you hold the companies responsible for your suffering accountable.
Find out why families put their trust in Sokolove Law:
- Over 45 years of experience
- No upfront costs or hourly fees
- Able to help victims in all 50 states
- More than $10.5 Billion total secured for clients
Call (800) 995-1212 now or fill out our contact form to see if we can fight for you.
Online Sports Betting Addiction Lawsuit FAQs
Can you sue for a gambling addiction?
In some cases, yes. You may be able to file a gambling addiction lawsuit if a sportsbook's app design, marketing, promotions, or other practices contributed to your gambling problems and caused you financial or other harm.
For example, lawsuits allege that some sportsbooks continued targeting vulnerable bettors with personalized bonuses, VIP rewards, and other incentives despite signs of problematic gambling behavior.
A gambling addiction attorney at Sokolove Law can review your betting history and interactions with the sportsbook to determine whether you may have a claim for compensation. Get started with a free case review.
Can you get compensated for a gambling addiction?
If you have a gambling addiction claim, you may be able to pursue compensation for the financial and personal harm you've experienced.
Depending on your case, compensation may include:
- Gambling-related financial losses
- Medical or addiction treatment costs
- Lost wages or reduced earning ability
- Pain and suffering or emotional distress
- Other expenses resulting from your gambling addiction
The amount you may be able to recover will depend on factors such as the extent of your losses, the sportsbook's conduct, and how the addiction has affected your life.
A gambling addiction lawyer at Sokolove Law can calculate your potential damages and pursue the compensation you may be entitled to.
What is the typical settlement amount for a sports betting lawsuit?
There is no typical settlement amount for a sports betting lawsuit. These cases are relatively new, and compensation can vary significantly based on the circumstances of each claim.
Potential settlement amounts may depend on the bettor's financial losses, treatment expenses, lost income, and more.
A sports betting lawsuit attorney can evaluate your damages and determine how much compensation you may be able to pursue. Call Sokolove Law at (800) 995-1212 to get started.
Can you get your money back if you have a gambling addiction?
Potentially. If a sportsbook is found legally responsible for contributing to your gambling addiction and resulting losses, a lawsuit may allow you to recover some of the money you lost betting.
You may also be able to pursue compensation for other damages caused by your gambling addiction, such as treatment costs and lost income. However, filing a lawsuit does not guarantee that you will recover all of your gambling losses or receive compensation.
Can I sue a sports betting company?
You may be able to sue a sports betting company like DraftKings or FanDuel if their practices contributed to your gambling addiction or made an existing gambling problem worse.
You may have grounds for a sports betting lawsuit if you:
- Suffered significant financial losses or accumulated substantial debt
- Were diagnosed with gambling disorder
- Received targeted bonuses, promotions, or VIP outreach despite signs of problem gambling
- Continued receiving marketing after trying to cut back or stop betting
- Asked to self-exclude or limit your gambling but were still allowed or encouraged to bet
- Were able to open an account or place bets while underage
Every case is different, and meeting one of these criteria does not necessarily mean you have a lawsuit. A sports betting attorney can review how the company interacted with you and determine whether you may have a claim.
Is there a gambling addiction class action lawsuit?
Proposed gambling class action lawsuits have been filed against sports betting companies, including DraftKings and FanDuel, over allegations involving gambling addiction and potentially harmful sportsbook practices.
Some gambling addiction class action lawsuits involve consumer protection and deceptive marketing claims related to sportsbook promotions, VIP programs, self-exclusion, and other practices allegedly used to encourage continued betting.
Sports betting litigation is still developing. If you suffered significant losses or other harm related to gambling addiction, you may be able to pursue an individual claim even if there is no class action available to join.
Can you sue FanDuel for gambling addiction?
You may be able to sue FanDuel if you developed or experienced worsening gambling addiction while using the sportsbook and believe the company's practices contributed to your harm.
Recent lawsuits against FanDuel allege that the company used VIP programs, betting credits, personalized promotions, and direct outreach to encourage some bettors to continue gambling despite signs of problematic behavior.
Can I sue DraftKings?
You may be able to sue DraftKings if you developed a gambling addiction or an existing gambling problem worsened while using their sportsbook and you believe the company's practices contributed to your harm.
Lawsuits against DraftKings have alleged that the company targeted vulnerable bettors with VIP hosts, personalized promotions, and other incentives designed to encourage continued gambling.
If you suffered financial losses or other harm while using DraftKings, a gambling addiction attorney at Sokolove Law can review your betting history and interactions with the company to determine whether you may have grounds for a claim.
How do I sue FanDuel or DraftKings?
If you believe FanDuel or DraftKings contributed to your gambling addiction and financial losses, a sports betting addiction attorney can review your situation and help you file a lawsuit against the sports apps if you qualify.
A DraftKings or FanDuel lawsuit typically involves:
- Contact an attorney: Get a free case review to discuss your gambling history, losses, and interactions with the sportsbook.
- Gather evidence: Your lawyer can collect betting and deposit records, promotional offers, VIP communications, self-exclusion requests, and other account information.
- Investigate the sportsbook: Your legal team can examine whether the company targeted you with incentives or continued encouraging you to bet despite signs of problem gambling.
- File your claim: If you have a case, your attorney can prepare and file a lawsuit and handle communications with the sportsbook.
- Pursue compensation: Your lawyer can negotiate for a settlement or take your case to court if necessary.
Sokolove Law can handle each step of the process for you, so you can focus on your health and recovery instead of worrying about the legal details.
How much does a gambling addiction lawyer cost?
At Sokolove Law, there are no upfront costs or hourly fees to work with our sports gambling addiction lawyers. We operate on a contingency-fee basis, meaning you pay nothing unless we secure compensation for you. Contact us now for a free legal consultation.
