Class Action Lawsuit Accuses BetOnline of Illegal Sports Betting

Authorities in multiple states have launched illegal gambling investigations involving BetOnline sports betting apps, which are run by offshore operators.

An unidentified woman has filed a sports betting lawsuit against the owners of the BetOnline family of gambling platforms, saying the company is operating illegally in the state of New York in an attempt to evade state laws.

The complaint (PDF) was brought by a plaintiff under the “Jane Doe” pseudonym in the U.S. District Court for the Eastern District of New York on March 5, naming Termas Del Arapay Management S.A. and Bol-SB House S.A. as defendants. The lawsuit, which seeks class action status, is one of a series of claims filed against sports betting sites in recent months, claiming they are finding ways to skirt gambling restrictions in some states.

Illegal Sports Betting Concerns

Gambling addiction rates have skyrocketed in recent years, following a 2018 U.S. Supreme Court ruling in Murphy v. NCAA, that overturned a long-standing federal ban on national sports betting. In the wake of that decision, 39 states and the District of Columbia have legalized sports betting, with 30 jurisdictions allowing gambling through platforms like DraftKings, FanDuel, BetMGM and Caesars.

According to the lawsuit, approximately 2.5 million U.S. adults suffer from severe gambling problems, and another five to eight million suffer significant, but less severe, issues. It notes that those suffering from gambling disorders face a 15 times higher rate of suicide than the rest of the population.

Along with the rise in gambling addiction, mental health experts warn that they have seen a significant increase in the number of young men seeking help for problems using sports betting apps. Many say that their path to addiction and compulsive gambling led through these apps, which enticed them with supposedly “risk-free” and “free bet” promotions that they say are deceptively marketed.

This has led to a number of sports betting addiction lawsuits being filed in courts nationwide, each raising similar allegations that the sports betting platforms intentionally employ predatory practices to hook new consumers into gambling patterns that cause both mental and financial harm.

This latest lawsuit targets BetOnline, which runs a family of sports betting apps, including Betonline.ag, Sportsbetting.ag, Tigergaming.com, WildCasino.ag, SuperSlots.ag, HighRollerCasino.ag and QueenBeeCasino.ag. The complaint indicates these sites offer casino-style sportsbooks, racebooks, casino games and poker.

BetOnline regularly claims that it is legally able to operate in New York, the lawsuit notes. However, the plaintiffs dispute these claims, indicating that the websites, operated by offshore interests, lack the actual licenses or authorizations needed in that state.

The company has already been targeted by enforcement actions from state regulators in various parts of the country, such as Massachusetts and Michigan, for similar reasons, according to the complaint.

“These enforcement actions reflect regulators’ determination that Defendants’ offshore casino operation constitutes an illegal, unlicensed gambling enterprise that unlawfully targets and exploits U.S. residents while evading state regulatory oversight and consumer protection requirements.”

– Jane Doe v. Termas Del Arapay Management S.A. et al

Late last year, New York Governor Kathy Hochul signed a bill into law that bans online sweepstakes casino games, which the lawsuit claims exactly describes BetOnline’s operations. State Attorney General Leticia James has also issued a cease-and-desist letter targeting all virtual casinos, warning them they are in violation of the state’s constitution.

According to the complaint, the plaintiff began betting on the platform in January 2025 and continued to do so through January 2026, wagering, and losing, thousands of dollars on the app. Her bets were mainly focused on professional football, basketball and tennis matches, but the plaintiff notes she was unaware the app was illegal in New York and lacked key consumer protections that could have prevented her losses.

The lawsuit seeks class action status for all New York residents who placed bets on the company’s family of websites. It presents claims on violations of the New York Loss Recovery Act, New York General Business Law, New York General Obligation laws and unjust enrichment.

Sports Betting Addiction Lawsuits

The class action joins a litany of individual sports betting lawsuits filed by individuals, states and municipalities nationwide, with many of the claims brought by young adults and college-age users who say they were specifically targeted, resulting in devastating financial losses and the development of compulsive gambling behavior.

Sports gambling addiction lawsuits are being investigated for individuals between the ages of 18 and 30 who suffered significant financial losses after using online sportsbooks, often exceeding $10,000. Platforms named in ongoing investigations include:

Sports gambling lawyers are reviewing claims nationwide on behalf of young adults and college students who developed compulsive gambling behavior and experienced financial harm that may have been preventable.

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