Gambling Addiction Lawsuit [2025 Update]

Do You Qualify for the Gambling Addiction Lawsuit?

Sports gambling is no longer confined to casinos or betting shops.

Online gambling platforms now allow people to place bets from their phones at any hour.

While this accessibility was marketed as safe and regulated, lawsuits and gambling studies show that it has fueled problem gambling and compulsive behaviors for thousands of users.

Many gamblers describe starting with small wagers but quickly chasing losses, spending increasing amounts of money, and falling into patterns of addictive behavior that they could not stop on their own.

These gambling behaviors often lead to debt, financial instability, and long-term effects on mental health, including depression and anxiety.

If you or a loved one tried to stop gambling but felt powerless against the design of the apps, with constant push notifications, risk-free promotions, or VIP perks, you may have grounds for a lawsuit.

Legal actions now allege that operators like DraftKings and FanDuel engineered their apps to exploit the brain’s reward system, encouraging compulsive gambling that stripped players of control.

Family members are often the first to notice when gamblers can’t stop spending, and many are left managing the fallout of drained savings, escalating debt, or emotional crises tied to online betting.

Evidence from gambling studies, regulatory fines, and consumer complaints suggests that the harm is not isolated, but systemic.

Courts are beginning to recognize that the long-term effects of addictive behavior linked to these apps cannot be dismissed as personal responsibility alone.

By taking legal action, individuals harmed by online sports gambling can seek accountability from the platforms that profited while ignoring the dangers.

You may qualify if:

• You placed sports bets through an online gambling app such as DraftKings or FanDuel.
• You lost significant amounts of money (often $25,000 or more) due to compulsive gambling, debt, or repeated attempts to chase losses.
• You have been diagnosed with a gambling disorder or related condition, including depression, anxiety, or compulsive behaviors linked to gambling.
• You attempted to stop gambling using self-exclusion tools, cool-off periods, or personal restraint, but the app continued to send promotions, push notifications, or VIP offers.
• You started gambling at a young age, even under 18, when the risks of addictive behavior and long-term effects are especially high.
• Family members or loved ones noticed harmful changes, such as money problems, withdrawal, or mounting stress, tied directly to gambling activity.

What Platforms Are Being Investigated for Legal Action?

A growing number of lawsuits and regulatory actions are targeting major online gambling platforms for the way they encourage compulsive gambling and exploit vulnerable users.

FanDuel and DraftKings are at the center of many claims, with allegations that their apps use deceptive promotions, VIP inducements, and aggressive marketing that make it difficult for gamblers to stop gambling.

Other operators have also drawn scrutiny from regulators and consumer advocates for similar addictive behavior models and failure to protect at-risk users.

Investigations focus on whether these companies profited while ignoring the long-term effects on gamblers, families, and communities.

Platforms under investigation include:

• DraftKings: Facing lawsuits over deceptive “risk-free” bets, continued access for self-excluded players, and manipulative app design.
• FanDuel: Accused in lawsuits of using VIP hosts, perks, and targeted promotions to keep gamblers spending increasing amounts.
• Flutter Entertainment: Parent company of FanDuel, named in lawsuits for corporate oversight failures.
• Other U.S. sportsbooks: Including Caesars, BetMGM, and Barstool, which have drawn state fines and regulatory attention for advertising practices and responsible gaming lapses.

Gathering Evidence for a Gambling Addiction Lawsuit

Building a strong case against an online gambling platform requires more than showing financial losses.

It also involves documenting the broader impact on your health and daily life.

Courts and attorneys often look for evidence that gambling behavior caused or worsened mental disorders, including depression, anxiety, or other behavioral addictions.

Support groups such as Gamblers Anonymous and treatment records from therapy or rehabilitation can strengthen claims by demonstrating the seriousness of the disorder.

Loved ones and family members may also provide statements that show how gambling disrupted relationships, finances, and overall well-being.

Gathering this documentation not only supports your lawsuit but can also connect you with strategies and treatment resources that help in recovery.

Helpful forms of evidence may include:

• Medical records diagnosing gambling disorder, depression, anxiety, or other mental disorders tied to compulsive gambling.
• Treatment documentation from therapy, rehabilitation programs, or counseling related to gambling or behavioral addictions.
• Support group participation evidence, including meeting logs or references from Gamblers Anonymous or similar groups.
• Financial records showing debt, lost savings, or increasing amounts spent on sports gambling apps.
• Personal accounts from family members, loved ones, or friends describing the long-term effects of gambling behavior.

The Legal Landscape for Gambling Addiction Lawsuits

The legal response to online gambling addiction is expanding quickly, and cases against DraftKings, FanDuel, and other platforms are building momentum.

Cities, private individuals, and regulators are filing actions that argue these companies designed their apps to foster compulsive gambling, targeted vulnerable users, and failed to implement meaningful safeguards.

Courts are now being asked to decide whether deceptive promotions, self-exclusion failures, and VIP inducements amount to unfair and deceptive practices under consumer protection laws.

Regulators at the state level are also imposing fines for compliance failures ranging from improper funding methods to violations of responsible gaming rules.

At the federal level, new legislation has been introduced that would ban VIP programs, tighten advertising rules, and create a national self-exclusion system.

Meanwhile, precedent from daily fantasy sports and “social casino” litigation shows courts are willing to treat addictive design as a basis for liability, even when companies point to arbitration clauses or argue they owe no duty to problem gamblers.

Together, these developments reveal a landscape where the gap between industry promises and lived harms is under sharper legal scrutiny.

For potential claimants, the important point is clear: legal avenues are opening, but documenting harms and evidence remains crucial to pursuing a case.

Significant legal actions include:

• October 2024: Patel v. FanDuel filed in the Southern District of New York, alleging that FanDuel used VIP hosts and perks to keep a known addict gambling despite obvious red flags.
• January 2025: Multiple state class actions filed against DraftKings (including Illinois, Kentucky, and New Jersey) over deceptive “risk-free” and bonus bet promotions.
• April 3, 2025: Baltimore City v. DraftKings & FanDuel filed, accusing the platforms of unfair and deceptive trade practices tied to “bonus bets” and targeted promotions.
• April 18, 2025: Macek et al. v. DraftKings filed in federal court (E.D. Pa.), alleging misleading “No Sweat” promotions and failures around self-exclusion.
• July 2025: Massachusetts Gaming Commission fines DraftKings $450,000 for accepting illegal credit-card funding of bets, requiring refunds and compliance changes.
• August 2025: Illinois adopts stronger advertising restrictions, including a campus ad ban and mandatory responsible-gaming messaging.
• September 2025: Federal judge rules that Apple, Google, and Meta must face claims tied to casino-style apps, rejecting Section 230 immunity arguments and signaling broader liability for addictive gambling products.

The Mental Health Impact of Gambling Addiction

The American Psychiatric Association classifies gambling disorder in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5/DSM-5-TR) as the only non-substance addictive disorder, grouped with “Substance-Related and Addictive Disorders” because it engages the brain’s reward circuitry in ways comparable to drugs of abuse.

DSM criteria describe a persistent, recurrent pattern marked by tolerance (needing increasing amounts of money), irritability when trying to stop, chasing losses, and significant life impairment, features clinicians use to diagnose the condition.

Recent research links online sports wagering to elevated mental-health harms: in a New Jersey study cited by the American Psychological Association, about 14% of sports bettors reported thoughts of suicide and 10% reported a suicide attempt.

Broader epidemiology shows people with gambling disorder face increased risk of depression, anxiety, substance use, and suicidality; one study found anxiety (44%), depression (38%), and substance use (33%) among diagnosed patients.

Sports betting carries distinct risks tied to rapid, continual markets and perceived “skill,” while electronic gaming machines (slot machines) are high-risk for different structural reasons (continuous play, rapid event frequency); both are riskier than many other forms such as lotteries.

Young men are disproportionately affected in today’s mobile era, with surveys and academic reviews flagging higher problem rates among this group as online access expands.

Since widespread legalization, signals of harm (including help-seeking and search interest for gambling addiction) have climbed alongside the growth of online sportsbooks.

Common health effects of gambling disorder include:

• Depression and mood disturbance, often emerging with escalating losses and impaired control.
• Anxiety, irritability, and sleep disruption, especially during attempts to cut down or stop.
• Suicidal ideation and attempts: gambling disorder carries among the highest suicide risk of any addictive disorder.
• Substance use comorbidity (alcohol, nicotine, other drugs) and worsened outcomes when conditions co-occur.
• Cognitive distortions (e.g., illusion of control, “near misses,” “hot hand”) that reinforce betting despite harm.
• Stress-related physical complaints (e.g., headaches, GI issues), often secondary to chronic financial and interpersonal strain.
• Functional impairment in work/school, relationships, and finances (debt, bankruptcy), frequently intensified by chasing losses.
• Worse outcomes among online sports bettors compared with many other forms of gambling, driven by 24/7 access and constant wagering opportunities as opposed to slot machines’ fixed session contexts.

Gambling disorder is an addictive disorder recognized by the DSM.

Today’s online sports bettors face unique pressures (live markets, push alerts, “skill” illusions) that heighten risk and intensify harms relative to many other forms of gambling.

What Treatment is Available to Victims of Gambling Addiction?

Treatment for gambling addiction combines medical, psychological, and community-based support to address both the behavior and its underlying causes.

Cognitive-behavioral therapy (CBT) is one of the most effective approaches, helping individuals challenge distorted beliefs about gambling and build healthier coping strategies.

Medications such as SSRIs, mood stabilizers, or opioid antagonists are sometimes prescribed to reduce urges or treat co-occurring mental health conditions.

Many people benefit from peer-based programs like Gamblers Anonymous, which provide ongoing accountability and a supportive environment.

Specialized treatment centers for behavioral addictions may also offer group therapy, family counseling, and financial planning services to repair the damage caused by compulsive betting.

Recovery is rarely a single step.

It often requires a long-term combination of therapy, treatment, and support groups to help individuals regain control of their lives.

Suffered Significant Losses and Mental Health Problems from Gambling Addiction?

If you have experienced major financial harm or mental health struggles because of compulsive gambling on platforms like DraftKings or FanDuel, you may qualify to take legal action.

Many individuals who believed they could stop gambling instead found themselves spending increasing amounts of money and falling deeper into debt.

Lawsuits argue that these apps were engineered to encourage addictive behavior, leaving players unable to recover losses while operators profited.

Mental health consequences are also a critical factor, with gambling disorder linked to depression, anxiety, and other conditions that disrupt daily life.

Family members and loved ones often see the emotional toll firsthand, as relationships and finances strain under the weight of gambling addiction.

Courts are now reviewing whether victims should have the right to seek compensation for money lost and the long-term harm caused by these platforms.

If you have tried to stop but felt trapped by promotions, VIP perks, or constant app notifications, you may fit the profile of claimants already coming forward.

Speaking with a lawyer can help you determine whether you have a case and what steps are available to pursue justice and potentially recover losses.

Potentially Recoverable Damages in Gambling Addiction Lawsuits

In gambling addiction lawsuits, damages represent the financial and personal losses that victims may be able to claim through legal action.

Because these cases are still developing, the types and amounts of damages available may vary widely depending on how courts view the conduct of operators and the direction of ongoing litigation.

Some claims may emphasize the recovery of direct financial losses, while others highlight medical treatment, therapy, or long-term mental health support tied to gambling disorder.

Ultimately, damages may be designed to account for both the economic costs and the personal toll that compulsive gambling has inflicted on individuals and their families.

Examples of potentially recoverable damages include:

• Recovered gambling losses (partial or total, depending on the facts of the case).
• Medical expenses related to treatment for mental health conditions such as depression or anxiety caused by gambling addiction.
• Therapy and counseling costs, including specialized treatment for gambling disorder or behavioral addictions.
• Rehabilitation program expenses for inpatient or outpatient care addressing compulsive gambling.
• Lost wages or diminished earning capacity if gambling behavior interfered with employment.
• Financial counseling or debt management costs tied to repairing damage from compulsive betting.
• Emotional distress damages for the psychological impact on victims and, in some cases, their loved ones.

TorHoerman Law: Investigating the Gambling Addiction Lawsuit

The rise of lawsuits against DraftKings, FanDuel, and other online gambling platforms reflects a growing recognition that these companies may have prioritized profit over consumer protection.

Victims of gambling disorder are coming forward with stories of significant financial losses, mental health struggles, and families torn apart by compulsive gambling behaviors fueled by manipulative app design.

TorHoerman Law is actively investigating claims on behalf of individuals who suffered harm, with a focus on recovering losses and securing compensation for medical treatment, therapy, and related damages.

Our law firm is committed to holding powerful operators accountable and giving a voice to those who were left vulnerable by platforms engineered to encourage addictive play.

If you or a loved one developed a gambling addiction, lost significant money, or faced mental health consequences tied to online sports betting apps, you may have legal options.

Contact TorHoerman Law today to learn whether you qualify for the gambling addiction lawsuit and take the first step toward recovery and justice.

You can also use the chat feature on this page to find out if you qualify for the gambling addiction lawsuit.