Sports Gambling Addiction Lawsuits and Personal Stories Reveal Massive Financial Losses Suffered

Through a growing number of lawsuits and social media outlets, young adults are sharing how their constant sports gambling has led to addiction and long-term financial consequences.

What began as a new form of entertainment has rapidly spiraled into an emerging national crisis among young males, with online sportsbooks driving massive financial losses through deceptive promotions and addictive app designs, according to allegations raised in a number of recent lawsuits and stories shared across the internet.

Nowhere has this impact been felt more acutely than on college campuses, where students have been directly targeted by the gambling platforms, through aggressive marketing deals and campus partnerships.

In recent years, several sportsbooks have partnered with colleges and universities to market directly to students, offering so-called “risk-free bets” and deposit matches that obscure the real cost of participation. At schools like LSU and Michigan State, students were even offered financial incentives to sign up, giving gambling companies direct access to one of the most vulnerable populations: young men in their late teens and early twenties.

With sports betting now normalized on college campuses, the mobile apps allow students to rack up tens of thousands in debt, often within months of placing their first wager. Experts warn that the predatory designs of sportsbooks apps are engineered with the same behavioral hooks used by slot machines and social media, creating a feedback loop that drives compulsive use, even as users spiral into financial ruin.

Now, sports betting addiction lawsuits are being filed against major platforms for exploiting these addictive tendencies, alleging that platforms not only market deceptive promotions, but also track users showing early signs of problem gambling, so that they can encourage further deposits through personalized offers and VIP treatment.

In this featured post, AboutLawsuits highlights personal stories of devastating gambling addiction losses from online communities and sports betting lawsuits, which shed light on how these platforms have impacted college students and young professionals across the country. These accounts expose a common pattern of deceptive marketing, loss-chasing behavior and a cycle of debt that many feel powerless to escape.

Lawsuits Reveal Massive Losses Among Young Gamblers

As sports betting platforms aggressively expand across the country, a growing number of individuals have stepped forward to file lawsuits, exposing the massive financial toll these apps have taken. The complaints describe a calculated strategy by DraftKings, FanDual and other platforms to lure users with misleading promotions, and then manipulate their users’ behavior to drive repeated, high-volume betting, even when attempting to stop gambling.

Below are excerpts from several recent cases that illustrate how platforms allegedly extracted tens or hundreds of thousands of dollars from addicted users through deceptive practices and relentless marketing.

$350,000 Lost on DraftKings

In April 2025, Avi Setton filed a lawsuit against DraftKings in the U.S. District Court for the Eastern District of Pennsylvania, alleging the company continued to allow him to gamble for four years, even after he asked for his account to be closed due to gambling addiction. Between 2020 and 2024, Setton lost more than $350,000 on the platform.

“Plaintiff Setton quickly began to struggle with a gambling addiction and he asked DraftKings to close his account in 2020… DraftKings did not do so, and between 2020 and 2024 Plaintiff Setton lost more than $350,000 on DraftKings.”
— Macek et al. Complaint, E.D. Pa.

$57,000 in Gambling Losses Despite Self-Exclusion

Matthew Harner filed a lawsuit against DraftKings and Golden Nugget in 2025, alleging the companies knowingly allowed him to create gambling accounts even though he had placed himself on Pennsylvania’s permanent casino self-exclusion list. Within just a few months, Harner lost approximately $57,000.

“Plaintiff Harner was allowed to create an account and gamble… despite being on the permanent Pennsylvania casino self-exclusion list since late 2022. Plaintiff Harner lost approximately $57,000 in the course of a few months.”
— Macek et al. Complaint

TikTok and YouTube Gambling Ads Led to $58,000 Lost

Lionel Alicea filed a sports betting addiction lawsuit in 2025 after losing a combined $58,000 in just two months on DraftKings and Golden Nugget. The complaint states Alicea was exposed to deceptive deposit match ads on TikTok and YouTube, then quickly spiraled into addiction. He lost $39,000 on DraftKings and $19,000 on Golden Nugget.

“Since signing up, Plaintiff Alicea has developed a serious gambling addiction and lost $39,000 in two months on DraftKings and $19,000 on Golden Nugget.”
— Macek et al. Complaint

“VIP” Sports Gambler Lost $153,000 in Four Months

Dr. Kavita Fischer, a double board-certified psychiatrist, filed a lawsuit against DraftKings in February 2025 after losing more than $153,000 between January and April 2023. She made 446 deposits totaling $208,130.50 and placed over 60,000 bets, often receiving bonus offers even after trying to self-exclude.

DraftKings upgraded her to its VIP program, assigned a personal host, and sent targeted promotions encouraging further gambling—despite clear signs of addiction. She made 147 deposits totaling $79,752 in just six days.

“Defendants even acknowledged that Plaintiff was displaying signs of problem gambling… then continued providing incentives to deposit and gamble while awaiting her response.”
— Fischer v. DraftKings, S.D.N.Y.

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Personal Stories Reveal Widespread Gambling Losses

While lawsuits reveal detailed patterns of abuse, many young adults have turned to anonymous platforms like Reddit to share their personal struggles, often as a last-ditch effort to break the cycle of addiction. These raw, unfiltered posts reflect the same harmful design patterns alleged in lawsuits: early exposure, deceptive bonuses, loss-chasing and emotional despair.

In one post titled “Lost All the Money to My Name”, a 21-year-old user describes the harrowing spiral of early gambling exposure:

“I started with a few bets here and there, but within a year I’d lost over $10,000. I maxed out credit cards, borrowed from friends, even skipped meals to bet. I feel sick with guilt, and I don’t know how to stop.”
— Reddit /r/problemgambling

In another viral post, a user recounts how her partner lost over $800,000 through online gambling platforms, hiding the losses for years while continuing to use family savings and credit cards:

“He started during college with a free promo. We didn’t know the extent until our mortgage was at risk. He was getting emails and VIP rewards right after trying to self-ban.”
— Reddit /r/BestofRedditorUpdates

In a recent post, a 33-year-old user admitted losing his life savings and retirement account after just two years of online gambling:

“I lost everything. I cleaned out my 401(k), I owe people money, I’m depressed and scared. I don’t know how it got this bad so fast.”
— Reddit /r/gambling

One Redditor who profited early from sports betting later returned to the platforms and lost far more than they ever made—despite “knowing better”:

“I won $70k my first year and thought I had it all figured out… Then I lost $130k over the next two. I knew the odds, but the app made it feel like I could win again if I just kept playing.”
— Reddit /r/AMA

And in a thread asking users to tally their total gambling losses, one commenter shared a sobering breakdown:

“$35,000 in credit card debt. Borrowed from family. Sold my car. Still gambling. I don’t know what rock bottom looks like anymore.”
— Reddit /r/problemgambling

These anonymous gambler stories echo what lawsuits and mental health experts continue to warn: sports betting addiction is not rare or isolated—it’s quietly destroying financial futures, one app notification at a time.

The Spiral Into Sports Betting Addiction

Whether shared in lawsuits or anonymous forums like Reddit, the stories follow a similar pattern: a new user signs up for what seems like harmless fun. A bonus offer leads to a win, which triggers excitement and confidence. Then comes the losing streak and the desperate attempt to win it all back. What begins as entertainment becomes a daily compulsion.

Common Signs of Gambling Addiction Triggered by Sports Betting Apps

• Chasing losses: Continuously betting more to recover previous losses
• Compulsive checking: Constantly refreshing the app or placing impulsive in-game bets
• Escalating deposits: Increasing the amount and frequency of bets over time
• Emotional deregulation: Feeling anxious, depressed or irritable when not gambling
• Secrecy: Hiding losses from friends, family or partners
• Financial destruction: Racking up credit card debt or draining savings accounts
• Failed attempts to stop: Trying to quit, only to return due to targeted emails or push notifications

Many users only realize how deep they’ve fallen after incurring tens of thousands of dollars in debt, or after a failed attempt at self-exclusion is met with new promotional offers urging them to come back.

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Lawsuits Over Predatory Sportsbook Designs

A growing number of lawsuits are being filed across the U.S. on behalf of individuals who developed gambling addictions after using popular sports betting platforms like FanDuel, DraftKings, BetMGM and others. Many of these cases involve young adults who were first introduced to gambling through college-sponsored promotions, or who began betting shortly after turning 18—before their brains were fully developed to manage risk or impulse control.

These lawsuits argue that the platforms are not just passive tools for entertainment, but intentionally engineered to exploit addictive behaviors, using real-time tracking and psychological triggers to drive repeated engagement and ever-larger losses. Rather than intervening when users displayed clear signs of problem gambling, the platforms allegedly amplified their behavior through customized incentives and retention strategies.

Core allegations include:

• Deceptive marketing through so-called “risk-free” bets and misleading bonus promotions
• Addictive platform design, including in-game betting, variable rewards and gamified interfaces
• Failure to intervene or restrict access when users showed signs of problem gambling
• Targeted recruitment of students and young adults, particularly through university partnerships and youth-focused advertising

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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:

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

Sports betting addiction lawyers are actively investigating new claims on behalf of young adults and college students nationwide who developed compulsive gambling behavior and suffered financial harm that may have been preventable.

In addition, claims are being reviewed for families who lost loved ones to suicide or witnessed suicidal behavior linked to gambling addiction encouraged by these apps.

To determine if you or a loved one may qualify for compensation, submit information to see if you qualify for a sports betting addiction lawsuit. Your case will be evaluated based on your use of betting apps, financial losses and signs of addiction. There are no fees or expenses unless a settlement or recovery is obtained.

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Find Out If You Qualify for Sports Betting Addiction Compensation