Plaintiffs in a new lawsuit named DraftKings, FanDuel, and the NFL as defendants. They claimed the companies have intentionally designed their betting platforms as a “relentless, always-on, addiction-amplifying machine.”
The Public Health Advocacy Institute filed the complaint. The group is a public interest nonprofit law firm.
The legal action alleges that Pennsylvania residents and plaintiffs Christopher Sage and Terry Thompson developed gambling addictions after using the platforms.
Targeting Micro-Betting
Sports data analytics provider Genius Sports was named as a defendant as well. The lawsuit alleges the companies provided a defective and dangerous product, specifically focused on micro-betting. Micro-betting is in-game wagering that allows users to bet on almost any play or action.
PHAI argues that “weaponized advancements in mobile technology and artificial intelligence” were used to steer players toward these betting options. The NFL was included because the firm said the league had a “a sizable equity stake” in Genius Sports.
“These defendants, including the NFL, are engaging in a coordinated effort to convert ordinary sports fans into non-stop gamblers,” PHAI Executive Director Mark Gottlieb said.
“By coordinating their use of immersive marketing, AI, cloud computing, and algorithms customized for every customer, they hijack customers’ brains and cause catastrophic harm to lifelong fans like Mr. Sage and Mr. Thompson.”
The suit alleges that micro-betting allows for wagering on “virtually limitless array of events.” Betting was available “from anywhere, 24 hours a day, seven days a week.” PHAI compared using the platforms to drug, tobacco and slot machine addictions.
Additionally, the plaintiffs allege the companies made use of VIP programs. They rewarded players with trips, gifts, and promotions to keep them gambling. The defendants have not yet publicly commented on the lawsuit.
Micro-Betting Remains Controversial
Micro-betting remains controversial and was the subject of a recent MLB scandal. The league suspended Cleveland Guardians pitchers Luis Ortiz and Emmanuel Clase in November for allegedly rigging pitches for bettors, receiving proceeds from the bets in the process.
MLB later reached an agreement with sports betting partners to put restrictions on this type of wagering.
This followed Ohio Gov. Mike DeWine leading an effort to limit micro-betting on pitches. In October, DeWine described the bets as “very dangerous” and said he was working with MLB to possibly ban them.
