“That all changed when they started using the FanDuel and DraftKings Sportsbook Apps,” the lawsuit alleges. “Within just a few years of placing their first microbets on the Sportsbook Apps, Plaintiffs lost nearly everything.”
A lawsuit filed in a Pennsylvania state court accuses sportsbooks FanDuel and DraftKings of using data supplied directly by the NFL to offer a “known addictive product.”
The lawsuit also accuses the sportsbooks of using so-called “VIP hosts” to encourage customers, including the plaintiffs behind the claim, to continue betting. These systems can allegedly lead to problematic behaviors, including gambling addiction and dire financial loss.
The defendants named in the lawsuit include the NFL and its data partner, Genius Sports, as well as FanDuel, DraftKings, and five individual sportsbook employees who were assigned as VIP hosts to plaintiffs Christopher Sage and Terry Thompson.
The complaint specifically alleges that DraftKings and FanDuel used the NFL’s live data to offer in-game micro-betting, a form of gambling that attorneys say is more likely to cause or encourage addiction. Lawyers for both Sage and Thompson say that the two men, both Pennsylvania residents, went on to develop severe gambling disorders, losing a combined total of more than $2 million over the course of several years.
Micro-betting, notes ESPN, involves placing wagers on the outcome of in-game events like free throws in basketball or a specific play in football. Under most circumstances, micro-betting requires near-real-time data, which is reportedly supplied by Genius Sports, an organization in which the NFL holds an equity stake.
Both DraftKings and FanDuel acknowledge that live betting accounts for about 50% of all wagers placed on their platforms.
Attorneys for Sage and Thompson say their clients had gambled responsibly for two decades without showing any signs of a disorder or problematic wagering.
“That all changed when they started using the FanDuel and DraftKings Sportsbook Apps,” the lawsuit alleges. “Within just a few years of placing their first microbets on the Sportsbook Apps, Plaintiffs lost nearly everything.”
The lawsuit claims that the two men were encouraged to keep taking risks by their VIP hosts, who offered them perks for their continued usage of the defendant apps.
Thompson, for instance, started betting with FanDuel in October 2020 and DraftKings in 2022. He lost approximately $1.83 million on both apps but was given VIP status. His VIP status included perks like a $500 bottle of champagne and tickets and hotel accommodations to attend Super Bowl LVI.
The lawsuit claims that Thompson’s assigned host knew that he had demonstrated problematic behaviors and had even suggested that Thompson take breaks after serious losing streaks.
“[W]hat do we think about taking a timeout and enjoying the holidays with the family and starting fresh after the new year?” a FanDuel host texted Thompson near the end of December 2022. About one month later, though, the host asked Thompson to call her about an “emergency,” which turned out to be a gift package to Super Bowl LVII in Arizona.
DraftKings VIP hosts similarly messaged Sage, helping to arrange free accommodations for a bachelor party held in Atlantic City. One of his hosts also sent him pictures of herself at different sporting events.
Sage claims that he placed himself on Pennsylvania’s gambling self-exclusion list in March 2025, the same month that he was diagnosed with gambling addiction disorder; he continued to receive messages from his DraftKings VIP host.
The lawsuit seeks a jury trial, compensation for damages, attorney fees, and an order prohibiting the defendants from continuing to engage in their alleged wrongful conduct.
NFL, sportsbooks among defendants in gambling addiction lawsuit
https://sports.yahoo.com/articles/nfl-sportsbooks-sued-over-microbetting-151608001.html
NFL and Sportsbooks Sued Over Microbetting Addictions
Join the conversation!