Sports Betting Apps Face New Lawsuits Over Addiction Claims

A Florida attorney has launched 15 lawsuits against the top U.S. sports betting apps, claiming their design promotes addiction and financial ruin. The suits follow a surge in online betting and growing concerns about its societal impact. The companies defend their responsible‑gaming measures.

By Felo News Desk · Published Sun, 20 Sep 2026 15:22:21 GMT

Florida attorney Jennifer Hoekstra has filed 15 lawsuits against FanDuel and DraftKings, the two largest sports‑betting platforms in the United States, alleging that the apps are engineered to create addiction and cause users to lose homes, jobs and relationships. The lawsuits come as online sports wagering has exploded, with last year’s total wagers reaching $167 billion, according to the American Gaming Association.

Legal Strategy and Allegations

Hoekstra’s legal theory mirrors a recent California case in which a social‑media company was found negligent for leading a 17‑year‑old user toward mental‑health harm. In that case, the court ruled that the platform’s design was addictive. Hoekstra now argues that FanDuel and DraftKings’ design—through constant notifications, bonus alerts and sophisticated data tracking—creates a persistent “ambient presence” that lures users back into betting at moments of stress or boredom.

She says the apps’ “workflow” is similar across both companies: push notifications, personalized messages, and VIP perks that keep users engaged. The lawsuits claim that these tactics push users to wager beyond their means, leading to financial ruin. Hoekstra’s firm previously won a case against Meta, and the attorney is now targeting the gambling industry.

Industry Response and Responsible‑Gaming Claims

Both FanDuel and DraftKings have denied the allegations. FanDuel stated that it “aggressively” monitors and curbs problem behavior, citing a $158 million investment in responsible gaming and the removal of 5,700 users last year. The company also highlighted tools such as deposit limits, timeouts and self‑exclusion options. DraftKings emphasized its Chief Responsible Gaming Officer and proprietary tools like My Budget Builder, which allow users to set custom limits on deposits, wagers, time and losses.

Despite these defenses, investigative reports suggest that the companies prioritize keeping users betting. A former FanDuel employee, speaking anonymously, said that the company’s data operations can detect when a gambler’s activity is “fading” and then target them with push notifications to re‑engage. He noted that the goal is “to slow them down” rather than cut them off entirely.

Personal Stories of Loss and VIP Treatment

Several individuals have shared how the apps’ VIP programs have deepened their gambling habits. Esteban Ruiz‑Haynes, a pest‑control salesman from Virginia, began wagering $80,000 to $120,000 a year on FanDuel. He received a dedicated manager who sent him personalized messages and invited him to high‑profile sporting events, turning his hobby into a lifestyle. Louis Ruggiero, a New York podcaster and former gambling addict, lost $100,000 in three months on FanDuel before the company offered him VIP status. He described the experience as “predatory retention disguised as hospitality.”

These stories echo broader research. A UCLA study found that states with legalized online sports betting saw a 25% rise in bankruptcies and credit‑card delinquencies. The National Council on Problem Gambling reported that 8% of American adults—almost 20 million people—exhibited at least one indicator of problematic gambling behavior “many times” in the past year.

What Happens Next?

The lawsuits are still pending, and the companies have not yet commented on the specific claims beyond their general statements on responsible gaming. If the courts find the apps’ design to be inherently addictive, it could set a new precedent for how online gambling platforms are regulated. The outcome may also influence how other tech firms approach user engagement and retention strategies.

Meanwhile, advocacy groups like the Sports Betting Alliance argue that most online bettors gamble responsibly and that the industry offers robust tools to prevent harm. They maintain that the apps’ measures—deposit limits, timeouts, and self‑exclusion—are sufficient to protect users.

For those struggling with gambling, resources are available. The National Problem Gambling Helpline can be reached by calling or texting 1‑800‑MY‑RESET, and Gamblers Anonymous offers a national hotline at 1‑855‑222‑5542.

As the legal battle unfolds, the industry will be forced to confront the balance between growth and user protection. The outcome could reshape how sports‑betting platforms design their user experiences and how regulators enforce responsible‑gaming standards.

Key facts

Florida attorney files 15 lawsuits against FanDuel and DraftKings for alleged addictive design
Online sports betting grew to $167 billion last year, raising addiction concerns
Both companies defend their responsible‑gaming tools and claim they monitor users closely
Personal accounts reveal VIP programs intensify gambling habits
Research links legalized online betting to higher bankruptcies and credit‑card delinquencies

Why it matters

The lawsuits highlight growing concerns about the addictive nature of online sports betting and its potential to cause serious financial and personal harm. They could influence future regulation and corporate responsibility in the rapidly expanding gambling industry.

Frequently asked questions

What are the main allegations against FanDuel and DraftKings?

The lawsuits claim the apps’ design encourages addiction through constant notifications, personalized messages, and VIP perks that keep users engaged and lead to financial ruin.

How have the companies responded to the lawsuits?

Both companies denied the claims, citing investments in responsible gaming, deposit limits, timeouts, self‑exclusion tools, and staff training on responsible engagement.

What evidence supports the addiction claim?

Investigative reports, personal testimonies, and studies showing increased bankruptcies and problem gambling in states with legalized online sports betting support the claim.