DraftKings Micro-Betting Causes Addiction Risks in Vulnerable Users, Critics Warn

Concerns about the effects of micro-betting come as DraftKings already faces a wave of sports gambling addiction lawsuits brought by former users, who allege they were targeted with deceptive promotions and advertisements.

DraftKings’ push into micro-betting features is raising alarms among regulators and public health experts, who warn that the rapid-fire wagers could further fuel gambling addiction risks, particularly among young and vulnerable users.

Micro-betting allows customers to place real-time wagers on the smallest moments of a sporting event, such as whether the next pitch will be a strike or the next football play will be a pass. DraftKings told investors that more than 1.5 million customers have used its live bet tracking feature this year, as the platform continues efforts to boost engagement through mobile-first personalization.

The expansion of these features comes as DraftKings, FanDuel and other platforms already face a growing number of sports betting addiction lawsuits brought by former users throughout the U.S. Plaintiffs claim the apps were deliberately designed to exploit addictive behavior through deceptive “risk-free” promotions, in-game betting incentives and psychological triggers that kept users chasing losses.

Several complaints accuse operators of aggressively targeting young men through college campus promotions, social media advertising and app-based notifications, which critics say amount to predatory designs built into the platforms themselves.

Many of the cases involve young adults who quickly racked up massive sports betting losses, with families alleging that operators ignored clear warning signs of gambling addiction.

DraftKings Doubles-Down on Micro-Betting Features

Amid the growing number of claims, DraftKings has taken major steps to embed micro-betting deeper into its business through the acquisition of Simplebet, a company specializing in ultra-granular, in-play wagering.

DraftKings first partnered with Simplebet in 2021, and held a minority stake. However, in 2024 it moved to buy the remaining ownership. The agreement was announced in August and closed in December, bringing Simplebet’s machine learning models and automated pricing systems fully in-house.

The integration allows DraftKings to expand the number of wagers it can offer during live games, while increasing the speed and accuracy of odds updates. The company says the technology makes in-play betting more responsive to what happens on the field, making it easier for users to place dozens of wagers in a single contest.

Analysts estimate the acquisition could cost up to $195 million, underscoring the strategic value DraftKings places on this form of betting. The company has already highlighted major sporting events, such as NFL games, as proving grounds for the technology, with a steady ramp-up of micro-market wagering during peak viewing times.

In the first quarter of 2025, DraftKings reported that live betting made up more than half of its overall handle for the first time. That milestone demonstrates how central in-play formats, including micro-betting, have become to the company’s business model. But it also illustrates the extent to which customers are being drawn into high-frequency wagering environments that addiction experts warn are linked to impulsive and compulsive behavior.

Experts Say Micro-Betting Fuels Addiction Triggers

Dr. Harry Levant, a gambling disorder specialist at ETHOS Treatment, cautions that the rise of micro-betting has transformed every moment of a game into a high-risk opportunity for addiction.

“We’re not just betting on who wins the big game. Now, every pitch, every point—every micro-event of every game—is a betting opportunity.”
– Dr. Harry Levant: Gambling Addiction Is on the Rise in the Age of Micro-Betting

Levant explains that this rapid-fire format is particularly dangerous for younger adults. “If you’re under 26, your risk-reward system isn’t fully formed,” he says. “This new form of gambling completely overwhelms your ability to make smart decisions.”

He emphasizes that the harm is not about chasing winnings but about the neurological rush each wager delivers.

“It’s the dopamine, not the dough. The rush you get from placing a bet—especially repeated bets—is a high. And like any high, it can become compulsive.”
– Dr. Harry Levant: Gambling Addiction Is on the Rise in the Age of Micro-Betting

Experts warn that the normalization of gambling through constant advertising and mobile apps frames micro-betting as harmless entertainment, even though its design carries risks comparable to addictive substances.

State Regulations and Bans on Micro-Betting

New Jersey lawmakers have introduced legislation to prohibit micro-betting altogether. Assemblyman Dan Hutchison, who sponsored Assembly Bill A5971 in July, argues that the wagers are engineered to keep people betting impulsively without time to pause. Supporters say the measure would classify violations as disorderly-persons offenses with fines of $500 to $1,000 per incident, though the official bill text has not yet been posted.

The proposal has drawn backing from the Council on Compulsive Gambling of New Jersey, which reports that calls to its helpline have risen by more than 270% since sports betting was legalized in 2018. Advocates warn that the pace and repetition of micro-bets accelerate gambling addiction, particularly among youth and compulsive users.

Meanwhile, Ohio regulators are moving to tighten micro-betting restrictions following growing concerns over game integrity and athlete safety. Governor Mike DeWine has specifically asked the Ohio Casino Control Commission (OCCC) to draft a rule targeting micro-bets tied to “highly specific events within games that are completely controlled by one player.”

These types of wagers include markets such as betting on an MLB pitcher’s first pitch, wagers that have been flagged during investigations into dirt-balling incidents involving Cleveland Guardians pitchers Luis Ortiz and Emmanuel Clase.

The OCCC, working in coordination with Major League Baseball, is reviewing current in-game micro-betting offerings and preparing draft regulations to remove them from Ohio sportsbooks’ menus. The company’s executive director, Matt Schuler, confirmed that the proposed rule would need approval from both the Commission and the state legislature before becoming enforceable.

Governor DeWine’s request followed MLB’s disclosure that both Ortiz and Clase were placed on non-disciplinary paid leave as part of a larger sports gambling investigation. The OCCC confirmed it had observed unusual wagering interest on Ortiz’s first-pitch offerings, prompting the review.

Industry Pushback on Micro-Betting Regulations

Sportsbook operators argue the New Jersey bill has little chance of passing. DraftKings CEO Jason Robins has dismissed the measure, noting that micro-betting represents only a single-digit share of live betting and an even smaller portion of overall business.

Industry groups such as the American Gaming Association contend that regulation, not prohibition, is the best way to protect consumers and preserve oversight. They warn that outright bans could push users toward unregulated offshore markets. Critics counter that the speed and structure of micro-betting make it inherently more dangerous than traditional sports wagers, requiring stronger safeguards before the practice becomes entrenched.

The pushback follows a broader pattern in which sports betting companies have lobbied against even basic consumer protection measures, arguing that stricter rules would undermine the legal market.

The debate underscores a widening divide in state approaches to mobile sports betting. While operators see micro-betting as a profitable innovation, regulators and public health advocates warn it may represent the next frontier of gambling addiction lawsuits.

Lawsuits Over Predatory Sportsbook Designs

A growing number of lawsuits are being filed nationwide on behalf of young adults who developed gambling addictions after using platforms like FanDuel, DraftKings, BetMGM and others. Many plaintiffs say they were first exposed to betting through campus promotions or soon after turning 18, before they were able to fully manage risk or impulse control.

The cases argue that sportsbooks are intentionally engineered to exploit addictive behavior, using psychological triggers, variable rewards and in-game betting features to keep users wagering. Instead of limiting access when clear signs of problem gambling appeared, operators allegedly pushed customized incentives that deepened losses.

Common allegations include deceptive “risk-free” promotions, predatory app designs, failure to intervene when users showed addiction warning signs, and targeted recruitment of students and young adults.

Who Can File a Sports Betting Lawsuit?

Sports betting addiction lawsuits are being investigated for individuals between the ages of 18 and 30 who have incurred more than $10,000 in gambling-related losses after using online platforms such as:

• Hard Rock Bet
• FanDuel
• DraftKings
• BetMGM
• Caesars
• ESPN Bet
• Bet365
• Fanatics Sportsbook
• PointsBet
• Barstool Sportsbook