DraftKings Lawsuit for Online Gambling Addiction [2025 Update]

DraftKings Gambling Addiction Lawsuit Overview

The DraftKings gambling addiction lawsuit centers on claims that the company’s online sportsbooks were deliberately designed to encourage excessive betting and exploit users’ psychological vulnerabilities.

Plaintiffs argue that DraftKings used deceptive marketing and misleading promotions (including so-called risk-free bets and “No Sweat” wagers) to make betting appear safe and winnable, when in reality users were continually exposed to escalating financial risk.

These tactics reportedly promote compulsive betting, causing individuals to place bets far more frequently and for larger amounts than they ever intended.

Many people describe the devastating aftermath of losing money they could not afford, entering cycles of financial distress and emotional strain that worsened over time.

DraftKings’ aggressive marketing has reached wide and vulnerable audiences, including college students and young adults targeted through sports programming, social media, and sponsorships tied to athletic events.

The platform’s mobile apps, available in nearly every legalized betting state, have made gambling accessible to over one million players, many of whom have reported difficulty controlling their betting habits.

Attorneys allege that this combination of convenience, constant advertising, and psychological manipulation represents a dangerous business model: one that blurs the line between entertainment and addiction.

As lawsuits continue to be investigated, courts will examine whether DraftKings’ business practices crossed into negligence or consumer fraud, and whether the company should be held financially accountable for the harms caused by its design choices.

What Is Being Alleged Against DraftKings?

In the wake of the sports betting boom, DraftKings is facing lawsuit investigations that claim its platform’s design and marketing amount to predatory gambling practices.

Attorneys argue that the company’s mobile games and sportsbook features are engineered to keep users engaged through constant promotions, notifications, and reward loops that make stopping nearly impossible.

The complaints say these tactics are different from traditional casino games, combining accessibility with personalization to create a higher risk of addiction and emotional harm.

Some plaintiffs and families even allege that users driven into financial ruin and despair by the app’s manipulative systems have taken their own lives.

Potential allegations include:

• Using deceptive and high-frequency advertising to normalize constant sports betting.
• Failing to enforce or meaningfully offer responsible gambling tools such as spending limits or self-exclusion.
• Designing features that reward risky behavior and mimic addictive mobile games.
• Encouraging continuous play through push alerts, bonuses, and “free bet” offers despite user losses.
• Ignoring warning signs of severe addiction, emotional distress, and suicidal behavior among affected users.

Cases and Regulatory Actions Involving DraftKings

Regulators and public entities are pursuing actions against DraftKings that focus on unfair practices and deceptive practices in how sports betting apps are marketed and operated; these are distinct from the individual addiction claims our law firm is investigating.

City and state actions typically aim to protect the public at large (seeking fines, injunctions, and policy changes) while individual lawsuits focus on a person’s specific financial harm and health impacts from gambling problems fueled by product design.

In short: public actions test whether DraftKings’ systems and ads are lawful; private cases examine how those same systems harmed a particular person who was given direct access to constant betting through mobile features and promos.

Important cases & regulatory actions (by date) include:

• Feb 28, 2023 – New York ad rules tighten: NY regulators formally move to curb terms like “risk-free,” signaling a crackdown on potentially deceptive practices in sportsbook advertising.
• Nov 20, 2024 – Ohio settlement ($425,000): The Ohio Casino Control Commission accepts a settlement with DraftKings over offering prohibited wagers (including certain college props) and allowing unapproved funding methods.
• Apr 3, 2025 – City of Baltimore lawsuit: Baltimore sues DraftKings (and FanDuel), alleging unfair practices and deceptive practices such as “bonus bet” promos and data-driven targeting that exacerbate addiction, framed as a public-health and consumer-protection action.
• Jul 15, 2025 – Federal class action (E.D. Pa.): Macek et al. v. DraftKings alleges misleading “No Sweat/risk-free” promotions, manipulative design, and self-exclusion failures, an example of broader legal claims aimed at promo and product design.
• Jul 25–30, 2025 – Massachusetts fine ($450,000): The Massachusetts Gaming Commission fines DraftKings for accepting credit-card-funded wagers (prohibited in MA), ordering refunds and remediation, an enforcement action that undercuts “responsible play” claims around funding controls.

These actions help establish a record that DraftKings’ systems and messaging have drawn official scrutiny for deceptive practices and operational lapses.

An individual claim centers on how those same systems led to financial harm and health impacts in a person’s life.

This can mean escalating losses, inability to stop, and documented gambling problems because the app’s features and promos gave users direct access to high-frequency wagering and nudged them to keep betting.

Who Qualifies for the DraftKings Lawsuit?

You may qualify if you used the DraftKings app or another online betting platform and experienced significant gambling-related losses that you believe were influenced by aggressive promotions or app design.

Our team at TorHoerman Law offers a free case review to help you determine whether you can recover financial losses tied to problem gambling fueled by those platforms.

If you developed a gambling addiction or were diagnosed with a gambling disorder, depression, or anxiety connected to your betting activity, you may have grounds to pursue compensation.

Users who repeatedly tried to stop, used self-exclusion tools without success, or found themselves chasing bigger bets may also qualify.

Even if you haven’t been formally diagnosed, evidence of escalating losses, large bets, or disrupted finances can support your case.

It’s important that your losses reflect more than just casual play.

They must show a pattern of compulsion, risk, or helplessness typical of problem gambling.

If you or a loved one are struggling with the emotional and monetary consequences of high-volume betting on DraftKings, it’s worth exploring your rights.

Contacting our team now can help preserve key evidence and position your claim while litigation is still evolving.

Gathering Evidence for a DraftKings Addiction Lawsuit

Evidence is critical in proving that DraftKings’ app design, marketing, or promotions contributed to your financial and emotional harm.

Strong documentation can show how the platform’s structure encouraged compulsive behavior, ignored self-exclusion requests, or caused escalating losses over time.

The more complete your records, the easier it is for attorneys to link your experience to patterns already cited in active lawsuits and regulatory actions.

Keeping this information organized not only supports your legal claim but also helps establish the full scope of damage caused by your gambling activity.

Helpful evidence may include:

• Account history and betting records from the DraftKings app showing frequent or increasing wagers.
• Financial documents (bank statements, credit card records) reflecting deposits, withdrawals, and gambling-related losses.
• Screenshots or emails of “No Sweat,” “risk-free,” or “bonus bet” offers and push notifications encouraging further betting.
• Self-exclusion or account correspondence showing attempts to limit or stop gambling that DraftKings ignored or failed to enforce.
• Medical or psychological records diagnosing gambling disorder, depression, or anxiety related to gambling behavior.
• Testimony from family members or trusted friends documenting changes in mood, finances, or behavior tied to DraftKings use.
• Receipts or bills for therapy, treatment programs, or support groups related to gambling addiction recovery.

Damages in Sports Betting Lawsuits

In lawsuits against online sportsbooks like DraftKings, damages are meant to compensate victims for both the financial and emotional harm caused by gambling addiction.

These cases consider how deceptive promotions, constant access, and failure to protect vulnerable users led to measurable losses and long-term mental health impacts.

Depending on the facts, claimants may be eligible to recover a range of economic and non-economic damages tied to their addiction and recovery.

Potential damages may include:

• Recovered gambling losses, either partial or full, based on verified betting and transaction records.
• Medical and therapy expenses for treatment of gambling disorder, depression, anxiety, or other related conditions.
• Lost wages or diminished earning capacity due to time missed from work or job loss caused by addiction.
• Rehabilitation and recovery program costs, including outpatient or inpatient treatment.
• Financial counseling and debt repair services tied to gambling-related losses.
• Emotional distress damages for the psychological toll on victims and their families.
• Punitive damages in cases where evidence shows reckless disregard or predatory conduct by the operator.

Resources for Individuals Suffering from Problematic Gambling

If you or someone you know has developed gambling addictions and needs help, a variety of trusted resources are available 24/7.

The National Council on Problem Gambling operates the National Problem Gambling Helpline™ at 1-800-522-4700, offering free, confidential support and referrals for those experiencing gambling-related losses or harmful betting behaviors.

The American Gaming Association also provides educational tools and a consumer hub to help individuals understand problem gambling and take proactive steps toward recovery.

If a gambling crisis turns into a mental-health emergency, contact the National Suicide Prevention Lifeline (dial 988 in the U.S.) for immediate assistance.

If a trusted friend or a loved one is struggling with gambling or you’ve recognized the signs of losing money, debt, or mental health deterioration tied to betting, reaching out to any of these services is a strong first step toward reclaiming control.

TorHoerman Law: Investigating DraftKings Addiction Lawsuit Claims

The growing number of lawsuits and regulatory actions against DraftKings shows a clear shift toward accountability for the harms caused by online sports betting platforms.

Victims who developed gambling addictions, lost significant money, or suffered mental health impacts deserve the opportunity to recover and rebuild.

TorHoerman Law is actively investigating DraftKings addiction lawsuit claims, representing individuals and families who were affected by deceptive promotions, manipulative app design, and failures in responsible gaming protections.

Our legal team is committed to exposing predatory industry practices and pursuing justice for those left in financial and emotional distress.

If you or a loved one experienced gambling-related losses or developed a gambling addiction linked to DraftKings, contact TorHoerman Law today for a free case review.

You may be eligible to pursue compensation for financial losses, treatment costs, and emotional harm caused by compulsive gambling behaviors encouraged by the platform.