(AsiaGameHub) – A Pennsylvania lawsuit has been filed against DraftKings and FanDuel, alleging they used data from the NFL and Genius Sports to develop sportsbook platforms that “could contribute to addiction.” The Public Health Advocacy Institute (PHAI) brought this legal action on behalf of Christopher Sage and Terry Thompson, who reportedly developed gambling addictions after using the betting apps. A central focus of the lawsuit is live, in-game micro betting, which it claims effectively turns sportsbooks into highly addictive products.
The lawsuit asserts that the operators are “weaponizing mobile technology and AI” to drive nonstop betting. Micro betting allows wagers on nearly every game occurrence, thereby greatly reducing typical constraints related to time, location, and tempo.
Plaintiffs note:
Every half, quarter, minute, second, pitch, play, and shot becomes a fresh gambling chance, with repeated wagers placed as the game progresses.
Whereas slower-paced games like casual poker typically take a long time to play, micro betting is undeniably akin to slot machines in terms of speed and repetition. Bets are placed within seconds, and there are no pauses or breaks, trapping users in ongoing cycles. The plaintiffs argue that such a design is intentionally crafted to maximize user engagement and encourage repeated wagers on the same events.
Micro betting relies on real-time data, which is supplied by Genius Sports and the NFL—both of which financially benefit from micro betting. In 2025, Genius generated $126.1 million from in-game live micro betting, accounting for nearly 19% of its total revenue, in part because the NFL is a shareholder.
Plaintiffs describe how casual betting escalated into addiction after switching to mobile apps, causing financial and personal ruin:
Within just a few years… the plaintiffs nearly lost everything—their savings, homes, businesses, and families.
VIP programs are alleged to entice consumers to keep gambling through gifts and trips. The lawsuit invokes Pennsylvania law and alleges: product defect, failure to provide proper warnings, negligence, unfair trade practices, and intentional infliction of emotional distress.
The plaintiffs are seeking monetary damages, a new jury trial, and court orders restricting the scope of sportsbook offerings. Micro betting is under increased regulatory scrutiny in the U.S. New Jersey plans to ban microbets, while New York is considering a ban on live bets. Massachusetts, Colorado, Kentucky, Louisiana, and Minnesota have the issue on their agendas, and Ohio, Maryland, and Vermont have already outlawed prop bets on college athletes.
PHAI has a track record of taking on sportsbooks, including:
- 2023: A class-action lawsuit in Massachusetts against DraftKings regarding deposit bonuses
- 2025: A Pennsylvania lawsuit against Caesars Palace Online Casino and Harrah’s Philadelphia Casino
- 2024: A lawsuit against the Massachusetts Gaming Commission over player data transparency
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