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Many users assume they'll have no legal recourse after losing money to online sports betting, especially when these platforms have strict terms and conditions, as FanDuel and DraftKings do.
Despite the mandatory arbitration clauses and class action waivers, litigation against these companies is moving forward. Users may still be able to recover compensation for deceptive marketing practices, predatory programs, and mental harm from gambling problems.
The giants of the online sports betting industry, DraftKings and FanDuel, are currently facing multiple lawsuits across different states for various allegations. These complaints include deceptive marketing practices and violations of state consumer protection laws. Recently, a lawsuit was filed against DraftKings in Michigan for allegedly violating state laws when the platform accepted bets from users who adjusted their spending limits when it was legally required to block them for a certain period.
FanDuel and DraftKings have both been the subject of state lawsuits. For example, Baltimore is strongly focusing on the companies' deceptive marketing practices. In 2025, DraftKings agreed to return $3 million to about 7000 Connecticut users after the state investigated their marketing tactics to entice users to deposit money with misleading promises of 'bonuses'.
Just this year, a Massachusetts judge denied DraftKing's motion to dismiss a case filed by bettors over a misleading deposit bonus promotion. Users were lured into the platform, thinking that depositing at least $25 and betting the amount would qualify them, only to find that the promotion came with more strings attached. They would have needed to deposit $5000, then bet a total of at least $25,000 in the next 90 days, to get the full $1000 deposit bonus.
In 2024, Americans spent nearly $150 billion on sports betting, and the number is expected to balloon in the coming years. If you experienced big financial losses or suffered from mental harm because of sports betting, these are your potential legal options for getting compensation. You may file a lawsuit depending on your state's consumer protection laws or join class action suits.
If you experienced serious financial losses from online sports betting or suffered mental health problems because of it, don't hesitate to explore all means possible to recover your losses and medical treatment costs. You may contact Atraxia Law so we can assess your current situation and figure out if you qualify for an online sports betting addiction claim. If you're eligible, we'll connect you with a competent attorney to represent you.