Online Gambling Platforms Lawsuit: Sports Betting

People who have filed online gambling addiction lawsuits claim that certain platforms intentionally took advantage of their addiction and caused financial devastation. These platforms, which are often downloaded as phone apps, have made daily, routine gambling accessible for millions of Americans.

In recent years, gambling has increased as it has been legalized across much of the country. According to a study published in JAMA Internal Medicine, total sports gambling wagers rose from less than $5 billion in 2017 to more than $120 billion by 2023. More than 90% of those bets were placed online.

Deceptive “Risk-Free” Bets, Bonuses and VIP Promotions

Online gambling lawsuits claim that certain platforms used deceptive marketing practices to keep users engaged and encourage them to gamble more money.

One example of this is popular platform DraftKings’ advertising of a “risk-free” bet.

These bets, however, still require the gambler to deposit their money into an account. If the gambler then loses the bet, they are not credited with money back. They instead gain a “bonus bet” that cannot be withdrawn from the app and can only be used to keep gambling.

The bonus bet amount also expires if it is not used within a week.

Lawsuits say that wagers made with these bonus bets pay out at lower odds than bets made with regular dollars.

“Thus, the new customer responding to the ‘no-risk’ advertisement can only get some of their money back, and only if they win their second bet,” one lawsuit states.

Another example of deceptive marketing that lawsuits focus on is the promise to match a new customer’s first deposit up to $1,000. In reality, lawsuits claim the offer is misleading, with high requirements to qualify, such as making an initial deposit of $5,000 and wagering at least $25,000 within 90 days.

VIP promotions also feature in some lawsuits, with customers claiming they were encouraged by hosts and notifications to continue gambling even as they tried to stop or take breaks after suffering losses.

Lawsuits Claim Online Gambling Platforms Violated State Law

Some online gambling lawsuits claim that these platforms violated state law and failed to protect their customers.

In a lawsuit filed in December 2025, a Michigan man claimed he lost tens of thousands of dollars after DraftKings failed to adhere to a state-mandated cooldown period.

Some users can set voluntary limits on a gambling app, and the app will then prevent them from depositing more than a set amount within a given time. Some states require gambling platforms to include a 24-hour cooldown period after a user requests a change to their limit.

But the lawsuit claims that DraftKings did not implement the cooldown period. It states that this undermined the effectiveness of self-imposed limits by allowing users to adjust those limits whenever they wished.

You may qualify for an online gambling addiction lawsuit if you suffered serious financial losses through the use of an app like DraftKings. Lawsuits are often filed by people who have been diagnosed with a gambling disorder as well.

People who have filed cases were often drawn in by promotions and special offers that lawsuits claim were deceptive. Those lawsuits also provide some instances of users attempting to stop gambling, but the apps in question offered bonuses or sent alerts to keep them engaged and spending.

As online sports gambling has risen in popularity, so has risky gambling behavior. A 2024 review published in The Lancet noted that the rates of problematic gaming are greatest among those who are gambling online.

Additionally, more than 61% of North American adults reported gambling in the last 12 months, with nearly 14% of that group engaging in risk gambling activities. The rate of risk gambling activities was even higher for adolescents.

Gambling disorder can have a severe impact on both your mental and financial health. It can cause other mental health problems to manifest or worsen, including anxiety and depression. According to the Cleveland Clinic, people with gambling addiction also have an increased risk of suicide.

Some online gambling addiction lawsuits have been filed as class actions. Those cases generally involve claims that certain platforms used misleading promotions or bonus offers to attract potential clients.

One online gambling addiction lawsuit involved a Pennsylvania man who was drawn in by advertisements of risk-free bets and a $1,000 match on deposits. He went on to lose significant sums of money despite initially becoming interested in a “risk-free” promotion.

Other cases focus on claims that VIP hosts used bonuses, promotional offers and rewards like sporting event tickets to keep heavy-spending clients engaged, even after they vastly outspent their income or attempted to stop gambling.

Lawsuits have also been filed individually by people who say they were impacted by a combination of these claims.

If you are interested in filing an online gambling lawsuit, gathering evidence to support your claim can help your case.

This may include proof that you used a gambling app, along with any financial records or receipts that show your losses.

You may also need evidence that shows you have suffered from gambling addiction. This can include any records of treatment or diagnoses.

If you aren’t sure where to start or how to get some of this information, don’t worry. A lawyer can help you determine what exactly you will need and how to successfully track it down.

You can take legal action for online gambling addiction by getting in touch with a trusted legal representative who can assist you.

A legal representative can evaluate your case, help you learn your legal rights, gather relevant information and file your lawsuit for you.

Steps To Take if You Believe a Sports Betting App Harmed You

If you believe that you were harmed by a sports betting app, one of the first steps you can take is to begin gathering relevant evidence, like gambling records and potentially a diagnosis of a gambling disorder.

From there, the next step may be to talk to a lawyer. Consumer Notice can connect you with a trusted legal representative. Your case can be evaluated for free in just minutes to let you know if you may qualify for an online gambling addiction lawsuit.