DraftKings, FanDuel, and the NFL face a new lawsuit alleging their microbetting products are designed to drive addiction through high-speed, continuous wagering.
A new Pennsylvania lawsuit alleges that through data provided by the NFL and Genius Sports, DraftKings and FanDuel have “intentionally” and “defectively” designed their online sports betting platforms into a “relentless, always-on addiction-amplifying machine.”
The Public Health Advocacy Institute (PHAI) filed the complaint on behalf of plaintiffs Christopher Sage and Terry Thompson, claiming they developed severe gambling disorders after using the sportsbook apps.
Lawsuit Alleges “Addiction-Amplifying” Product Design
At the center of the case is the argument that online sportsbooks constitute a defective and dangerous product, particularly through their live, in-game microbetting.
The complaint alleges the operators have “weaponized advancements in mobile technology and artificial intelligence” to funnel users toward microbetting.
The suit defines microbetting as wagers on a “virtually limitless array of events” during a game, allowing users to bet continuously as odds update in real time and removing traditional barriers such as time, location, and pacing. It claims that the format now enables bettors to wager “from anywhere, 24 hours a day, 7 days a week.”
Furthermore:
“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 over and over and over again as the game unfolds.”
Microbetting Compared to Slot Machines
The lawsuit emphasized that not all gambling has the same risks, citing that a poker game with friends is less dangerous than a slot machine, due to the latter’s fast pace.
The complaint emphasizes that the design of microbetting, in particular its speed and frequency, increases addiction risk, similar to slots.
“Each live-in-game prop bet is completed within a few minutes, or… seconds,” the complaint states, adding that such wagers are “akin to gambling on slot machines.”
It further claims that microbetting creates a system with “no off-ramps or pauses in the action,” keeping users in continuous betting cycles.
According to the complaint, these design features are not incidental but intentional, aimed at maximizing engagement and encouraging repeated wagering.
NFL and Genius Sports Profit From Microbetting
The lawsuit alleges that Genius Sports and the NFL play a central role by supplying the real-time data required to power microbetting. Without that data, the complaint argues, sportsbooks “cannot implement microbetting.”
It states that Genius Sports and the NFL “not only facilitate but encourage and profit from microbetting through their supply of officially-licensed real-time game and player data.”
DraftKings and FanDuel have previously indicated that live betting accounts for roughly 50% of total wagers on their platforms.
The filing also highlights the NFL’s equity stake in Genius Sports. It states that in 2025, Genius Sports earned $126.1 million in commission from live in-game microbetting, approximately 19% of its revenue for the year.
Plaintiffs Detail Escalation to Addiction
The lawsuit says the defendants have profited from converting casual sports fans and recreational gamblers into hardcore gambling addicts through their apps’ design.
It claims the two plaintiffs enjoyed watching sports and occasionally placed sports bets without issue for nearly two decades. However, their gambling behavior escalated after transitioning to mobile sportsbook apps.
“Within just a few years… Plaintiffs nearly lost everything—their money, their houses, their business, their families,” the filing states.
The lawsuit also highlights the role of VIP programs, alleging that sportsbook representatives maintained direct contact with players and offered incentives such as trips, gifts, and promotions to encourage continued betting.
The lawsuit brings multiple claims under Pennsylvania law, including:
- Design defect
- Failure to warn
- Negligence
- Unfair trade practices
- Intentional infliction of emotional distress
The plaintiffs are seeking damages, a jury trial, and injunctive relief that could restrict how sportsbooks offer certain betting products.
Growing Scrutiny of Microbetting and Certain Bet Types
The lawsuit arrives as scrutiny of some types of betting, including microbetting, intensifies nationwide.
In New Jersey, lawmakers advanced a bill this week to ban microbets. Lawmakers cite concerns around addiction risk and betting intensity. In New York, lawmakers have introduced a bill that would ban live bets altogether. The measure is yet to receive a hearing.
Additionally, several other states, including Massachusetts, Colorado, Kentucky, Louisiana, and Minnesota, are discussing potential prohibitions on certain proposition (prop) bets.
Several states have already enacted bans on prop bets tied to college athletes, including Ohio, Maryland, and Vermont.
PHAI Expands Legal Campaign Against Sportsbooks
The microbetting lawsuit is not the first time PHAI has litigated against sportsbook operators.
It filed a class-action lawsuit in Massachusetts in 2023, challenging DraftKings’ deposit bonus promotions as misleading. Last month, a judge rejected most of DraftKings’ motion for summary judgment, allowing the case to proceed to class certification, discovery, and trial.
In 2025, PHAI filed a similar lawsuit in Pennsylvania against Caesars Palace Online Casino and its retail partner Harrah’s Philadelphia Casino over the platform’s welcome bonus in the state.
The organization has also targeted gaming regulators over alleged failures in consumer protection. In 2024, it sued the Massachusetts Gaming Commission, seeking to compel the regulator to comply with state law and turn over data that casinos collect to track player behavior.
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