DraftKings, FanDuel Hit With Second Lawsuit Over ‘Addictive’ Design as Courts Push Back

DraftKings and FanDuel face a second lawsuit in a week alleging “addictive” design, as courts continue to reject similar claims.

A Massachusetts lawsuit alleges that DraftKings and FanDuel have deliberately designed their platforms to foster gambling addiction, marking the second such complaint this week, even as courts continue to reject similar arguments.

Massachusetts Complaint Alleges “Dangerously Addictive Design”

The Suffolk Superior Court lawsuit by plaintiff Daniel Arroyo claims that the design of sportsbook apps exploits user behavior and encourages compulsive betting.

The complaint states that the apps’ “dangerously addictive design exploits users’ vulnerabilities.” It argues that their structure is built to remove friction and allow users to “place bets at any time,” with the platforms leveraging “hyper-personalized algorithms” to tailor engagement.

The lawsuit further alleges:

“Their gambling apps track every user interaction, including wagers placed, time spent on the app, and even moments of hesitation to create hyper-personalized algorithms. Utilizing this data, they bombard gamblers, including gamblers that know or should are problem gamblers, with targeted notifications and advertisements precisely when they’re most susceptible, like late at night or after a big loss.”

The complaint also highlights the role of promotions and retention programs, stating the apps deploy “targeted promotions… and aggressive ‘VIP concierge programs’.”

The lawsuit claims these programs are designed to increase betting frequency.

Rather than acting to limit harm, the complaint alleges operators knowingly allow and reinforce problematic behavior:

“refuse to implement any safeguards… instead, intentionally design their sports gambling platforms to addict users.”

Under Massachusetts consumer protection law (Chapter 93A), the case frames sportsbook apps as defective products designed for continuous engagement, where accessibility, personalization, and incentives combine to drive repeated betting behavior.

Second Lawsuit in a Week Targets Sportsbook Practices

The Public Health Advocacy Institute (PHAI) backs the Massachusetts case. It was filed just one day after a separate Pennsylvania lawsuit that PHAI backs against DraftKings and FanDuel.

In that case, the plaintiffs allege the companies have “intentionally” and “defectively” designed their online sports betting platforms into a “relentless, always-on addiction-amplifying machine.”

The Pennsylvania lawsuit focuses on microbetting. It describes the product as a system with “no off-ramps or pauses in the action,” keeping users in continuous betting cycles. The complaint also names the NFL and Genius Sports. It claims they play a central role by supplying the real-time data required to power microbetting.

Legal Strategy Mirrors Tech and Social Media Cases

The Massachusetts complaint reflects a growing trend in litigation against technology companies, where plaintiffs focus on product design.

The same law firm behind the case recently secured a $6 million verdict against Meta and Google in Los Angeles. In that case, attorneys alleged that the social media platforms employed behavioral and neurobiological techniques similar to those used by slot machine manufacturers and cigarette companies to drive engagement.

Courts Have Rejected Duty of Care Claims

While two lawsuits this week have targeted sportsbook design, a federal judge also ruled in favor of DraftKings in a separate addiction-related case.

In that Pennsylvania case, the court found:

“DraftKings has no duty of care to protect Plaintiffs from spending too much money or from developing or fueling a gambling addiction.”

That case had allegations similar to those in the two new lawsuits, including claims that VIP hosts encouraged excessive gambling.

The court rejected those claims. It ruled that operators do not control user behavior. It found that bettors retain full autonomy over whether to place wagers, even when influenced by promotions, outreach, or platform design.

The judge wrote:

“Encouraging them to place bets is insufficient to create a fiduciary relationship.”

The court also pointed to the structure of sports betting itself. It noted that users wager at their own discretion and that there are no requirements to follow any guidance or recommendations from operators or VIP hosts.

The post DraftKings, FanDuel Hit With Second Lawsuit Over ‘Addictive’ Design as Courts Push Back appeared first on Gambling Insider.

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