The sports betting industry has exploded into a multibillion-dollar market after the Supreme Court allowed states to make it legal for users to place wagers online.
However, many users are being lured into online betting without fully understanding the legal obligations of these operators and the negative effects of online sports betting, both on their finances and their health.
Unfortunately, the legal landscape of regulation in this industry is full of gaps and loopholes, and differs from state to state. If you suffered losses and mental health harm from sports betting, we highly urge you to contact us to discuss how you can file a claim.
When it comes to the regulation of the online sports betting industry, every state has its own rulebook. What may be legal in some states may not be the best safety practice that benefits American citizens. The National Council on Problem Gambling (NCPG) evaluated state regulations against 82 of its 'policy recommendations' for responsible gaming, which cover the following categories:
Out of all states evaluated, only Connecticut, New Jersey, and Virginia met the highest scores aligned with NCPG's responsible gambling standards. Still, at least 11 states matched at least 40 out of the 82 recommendations. On the other end of the spectrum, there are 11 states that matched less than 24 of NCPG's standards, including Florida, Kentucky, Nevada, and West Virginia.
This report by NCPG shows how online sports betting operators are running businesses in many states where there are not many safeguards for users. Many Americans are depositing thousands of dollars into their sportsbook accounts without protection from gambling addiction and financial ruin.
In 2025, the American Gaming Association found that 38 jurisdictions have self-exclusion programs, allowing bettors to exclude themselves from online betting sites and casinos. At least 29 jurisdictions were also found to have features where users can set 'self-limits' in deposits, losses, wager amounts, and time spent in gambling.
However, these features all have one thing in common: the burden of protecting users from addiction and financial loss is on the user instead of on the operator. For users who do not set self-limits and regularly put in huge deposits, they are likely to be targeted for VIP programs instead of flagged for intervention.
With lax regulations and state safeguards, we at Atraxia Law understand how difficult it is to face sportsbook companies while you're recovering from financial losses and mental health harm. We highly urge you to contact us and relay your situation to our legal team to see if you qualify for an online sports betting addiction claim. This case evaluation is free of charge, and you will be connected to a competent attorney if you are eligible for a claim.