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Sportsbooks Face Addiction Tech Lawsuit

ESPN General •
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A Massachusetts lawsuit accuses DraftKings and FanDuel of using addictive technology similar to social media platforms to keep customers betting. Filed hours after a jury found Meta and YouTube liable for $6 million in a similar case, the complaint alleges sportsbooks track user behavior and target them when vulnerable, like after losses or late at night.

The plaintiff reportedly wagered nearly $200,000 on FanDuel in his first year—double his pretax income—before escalating to $1.5 million the next year when he left his job. The lawsuit differs from previous gambling addiction suits by claiming physical harm rather than just economic injury. Similar cases have been dismissed with judges ruling sportsbooks aren't responsible for monitoring customer habits.

The litigation comes as gambling addiction remains a growing concern. A 2024 study found that less than 2% of Connecticut residents are problem gamblers yet account for 51% of sports betting revenue. The suit alleges sportsbooks provide VIP managers and incentives to encourage continued betting, a strategy similar to techniques borrowed from slot machines and the cigarette industry to maximize engagement.