TLDR
- A Pennsylvania lawsuit accuses DraftKings, FanDuel, and the NFL of designing microbetting products that drive gambling addiction
- The complaint compares microbetting speed and frequency to slot machines, calling the apps a “relentless, always-on addiction-amplifying machine”
- Two plaintiffs claim they nearly lost everything after transitioning to mobile sportsbook apps
- Genius Sports earned $126.1 million in 2025 from live in-game microbetting commissions
- Multiple states are now moving to ban or restrict microbetting and certain prop bets
A new lawsuit filed in Pennsylvania accuses DraftKings, FanDuel, the NFL, and Genius Sports of designing online sports betting platforms that intentionally drive users toward gambling addiction through microbetting.
The Public Health Advocacy Institute filed the complaint on behalf of two plaintiffs, Christopher Sage and Terry Thompson. Both claim they developed severe gambling disorders after using the sportsbook apps.
The lawsuit argues that microbetting allows users to wager on a nearly endless stream of in-game events. Every play, pitch, shot, and second becomes a new betting opportunity as odds update in real time.
The complaint describes the apps as a “relentless, always-on addiction-amplifying machine.” It claims the operators have weaponized mobile technology and artificial intelligence to funnel users into continuous wagering.
Microbetting Compared to Slot Machines
The filing draws a direct comparison between microbetting and slot machines. It argues that the speed and frequency of in-game prop bets mirror the fast-paced design of slots, which are widely considered among the most addictive forms of gambling.
Each live in-game prop bet is completed within minutes or even seconds, according to the complaint. The lawsuit says this creates a system with “no off-ramps or pauses in the action.”
The two plaintiffs say they watched sports and placed occasional bets without problems for nearly 20 years. Their behavior changed after they started using mobile sportsbook apps.
“Within just a few years… Plaintiffs nearly lost everything—their money, their houses, their business, their families,” the filing states.
The lawsuit also accuses sportsbooks of using VIP programs to keep users betting. It claims representatives maintained direct contact with players and offered trips, gifts, and promotions as incentives.
The complaint targets the NFL and Genius Sports for supplying the real-time data that makes microbetting possible. Without that data, the lawsuit argues, sportsbooks cannot offer these products.
Genius Sports earned $126.1 million in commission from live in-game microbetting in 2025. That represented about 19% of the company’s total revenue for the year.
The NFL holds an equity stake in Genius Sports. DraftKings and FanDuel have previously said live betting accounts for roughly 50% of total wagers on their platforms.
States Move to Restrict Microbetting
The lawsuit brings multiple claims under Pennsylvania law, including design defect, failure to warn, negligence, unfair trade practices, and intentional infliction of emotional distress. The plaintiffs are seeking damages, a jury trial, and injunctive relief.
This is not the first time PHAI has taken legal action against sportsbook operators. It filed a class-action lawsuit in Massachusetts in 2023 challenging DraftKings’ deposit bonus promotions. A judge last month allowed that case to proceed to class certification, discovery, and trial.
In 2025, PHAI filed a similar lawsuit in Pennsylvania against Caesars Palace Online Casino over its welcome bonus practices.
The lawsuit comes as multiple states increase scrutiny of microbetting. New Jersey lawmakers advanced a bill this week to ban microbets. New York lawmakers have introduced a bill to ban live bets altogether.
Massachusetts, Colorado, Kentucky, Louisiana, and Minnesota are all discussing potential bans on certain prop bets. Ohio, Maryland, and Vermont have already enacted bans on prop bets tied to college athletes.
