NFL Sports Gambling Lawsuit Claims Live Game Data Fueled FanDuel, DraftKings Addiction

National Football League allegedly sold data to sportsbooks that allow live in-game “microbets,” which now make up the majority of sports betting wagers and help the platforms target potential addicts.

The Public Health Advocacy Institute (PHAI), originally known for its campaigns against the tobacco industry, has held an international symposium in Boston to discuss potential policy initiatives to address online sports betting addiction.

At its “Online Gambling and Public Health Movement” symposium held at Northeastern University last week, PHAI announced that the organization is backing a wide-ranging online sports betting lawsuit over the growth of gambling addictions nationwide. 

According to that complaint (PDF), the NFL provided Genius Sports, DraftKings and FanDuel with data that allowed the sportsbooks to empower their algorithms to identify, target and victimize consumers who show signs of gambling addiction. The organization argues that this has made FanDuel and DraftKings, in particular, far more dangerous than other online sportsbooks.

Online Sportsbook Dangers

In 2018, the U.S. Supreme Court issued an opinion that struck down a ban on federal sports betting, leaving it up to each state whether to allow the practice. The decision’s impacts have led to an explosion in online sports betting nationwide, which critics say has also led to increasing reports of sports betting addiction, financial losses and other societal damages.

The impact of online sportsbooks have hit young adults particularly hard, as they are often more comfortable using digital payment systems. In addition, many, such as those who have just left home to go to college, are managing their own personal finances for the first time, making them more vulnerable to the financial impact of compulsive gambling.

As a result, the PHAI-backed claim joins a growing number of individual and class action sports betting addiction lawsuits being brought against DraftKings, FanDuel and other online sportsbooks, alleging that the companies engage in malicious tactics designed to foster gambling addiction. The filings often indicate these companies use algorithms to target and exploit potential gambling problems. Many complaints also claim the sites violate multiple state laws and tend to try to operate in states where they are not legal.

Online Gambling Public Health Lawsuit

The PHAI-backed complaint was brought by Christopher Sage and Terry Thompson in the Philadelphia Court of Common Pleas earlier this year. It names DraftKings, Inc., Crown PA Gaming Inc., Beftair Interactive US LLC, FanDuel Group Parent LLC, FanDuel PA LLC, FanDuel Inc., Flutter Entertainment PLC, the National Football League, NFL Enterprises, Genius Sports Group Limited, Bryttani Morgan, Michael Sonbeek, Dyleisha Lewis, Peter Donahue and Shaun Gordon as defendants.

The lawsuit alleges the NFL and the gambling companies collaborated to transform sports betting into a highly addictive, always-available system, using personalized, fast-paced interfaces designed to intensify compulsive gambling behavior beyond anything previously offered to consumers. These offerings include “microbetting” options.

“With live feeds of officially-licensed game and player data supplied by the NFL and Genius Sports, DraftKings and FanDuel have weaponized advancements in mobile technology and artificial intelligence so that their Sportsbook Apps funnel more and more customers toward a brand new and highly addictive type of gambling: live in-game microbetting.”

– Christopher Sage et al v. DraftKings Inc. et al

Microbetting involves placing wagers as games are still in progress on a wide variety of factors that may occur as the game proceeds. Multiple bets can be made and the odds constantly change. According to the lawsuit, a majority of online wagers placed on online sportsbooks now consist of these microbets.

The lawsuit notes that this type of betting is only possible because of the NFL’s data and cooperation. According to the complaint, the NFL provides in-game data to Genius Sports, its long-term strategic partner and the exclusive distributor of officially licensed NFL game data, which is then licensed to FanDuel and DraftKings. 

Online Gambling Harm Allegations

Both plaintiffs, Sage and Thompson, are Pennsylvania residents who suffered large amounts of gambling losses due to the gambling addiction they say was purposefully fostered in them by the defendants’ actions. Sage indicates he suffered $40,000 in losses to DraftKings after the sportsbook assigned Lewis to be his “VIP host,” whose job was to encourage him to bet more and bet often.

Similarly, Sage was also appointed a VIP host while placing wagers on FanDuel, which he began using in July 2019. One of the hosts during his tenure was defendant Sonbeek. Sage estimates he suffered gambling losses in excess of $130,300 through FanDuel wagers.

Thompson had similar experiences, being assigned Morgan as his VIP host on FanDuel and Donahue as his VIP host on DraftKings. Thompson indicates he lost more than $1.5 million on FanDuel and $336,000 on DraftKings.

“Following in the footsteps of the tobacco industry, the online sports gambling industry has developed a highly addictive, difficult-to-resist product that bombards consumers with dozens of betting opportunities every minute of the day and that is leaving a trail of devastated victims.”

— Andrew Rainer, PHAI Litigation Director, press release

The men present claims of violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, design defect, failure to warn, design defect (negligence), negligent failure to warn, common law negligence, intentional infliction of emotional distress, unjust enrichment, and aiding and abetting tortious conduct. They seek both compensatory and punitive damages.

Online Gambling Addiction Lawsuits

Sage and Thompson’s lawsuit, backed by PHAI, is one of an increasing number of similar gambling addiction lawsuits filed against sportsbooks nationwide by individuals who are now combating destructive gambling habits they say were caused by patronizing the sports betting apps.

Thousands of similar claims are expected in the coming months and years, and most are being filed by young, college-age men who say they were targeted and exploited by aggressive promotions and data-driven algorithms able to detect compulsive habits.

Plaintiffs argue that apps like FanDuel and DraftKings use advanced psychological triggers that the average consumer has little defense against, leading them to make higher, more frequent, and more personally and financially destructive wagers.

Sports betting addiction lawyers are investigating claims across the U.S., focusing on whether these websites intentionally foster compulsive behavior and profit from users’ escalating losses. Platforms named in ongoing investigations include:

To find out whether you qualify for a sports betting lawsuit, submit information about your potential claim for an attorney to review. All cases are handled on a contingency fee basis, meaning you pay nothing unless a settlement is obtained in your case.

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