More and more lawsuits are being filed against online sports betting companies as the industry remains widespread and unregulated. Plaintiffs are arguing that online sports betting companies should be held liable for the harm caused by their platforms.
Many of these cases focus on how sports betting apps have been designed, marketed, and operated by the companies. There are several legal theories being used to support plaintiffs' claims, including:
One argument used in lawsuits is that online sports betting platforms may be considered "defective products". This may be due to how these apps were intentionally designed to promote addictive behavior. The design includes "near-win" visuals and persistent notifications that push users to continue gambling even after repeated losses.
Some claims also include that online sports betting platforms should be held responsible for negligently marketing their products and failing to implement safeguards. A class-action lawsuit also claims that DraftsKing allowed the promotion of their product to underage users, so they would be groomed to start gambling at 21.
Another issue is how sports betting companies present their services to users. Companies would do promotions and offers, like "risk-free" bets, where users do not get their deposit back as withdrawable money. The stakes are only returned to encourage players to place another bet. Some details are also buried in fine print, like DraftKings' terms, where users waive the right to a trial by jury.
The city of Baltimore filed a lawsuit against DraftKings and FanDuel for deceptive practices targeting vulnerable users. The city claims that their app design, promotion, and incentive campaigns encourage excessive gambling and violate consumer protection laws.
One of the more serious allegations mentioned in lawsuits by people who developed a gambling disorder is the VIP program run by online sports betting companies. These programs target high-volume bettors, whose spending history already shows signs of excessive gambling. Instead of referring them to counselling or sending responsible gaming reminders, companies assign them a personal host to encourage them to keep on gambling.
Users reported that they get notifications, free bet offers, bonuses, and other encouragements to come back whenever they try to stop gambling. A player who already mentioned their gambling problem to their DraftKings host even received $500 in casino credits, which encouraged them to gamble more.
If liability is proven, players may get compensation depending on losses and damages caused by their gambling addiction. Claims may include the medical costs of hospitalization or treatment and financial damages. If you or a family member suffered harm from online sportsbooks, filing a sports betting addiction claim is one of your legal options. Ataxia Law can evaluate your case and connect you with a specialized lawyer.