FanDuel Lawsuit for Online Gambling Addiction [2025 Update]

FanDuel Gambling Addiction Lawsuit Overview

The focus of the lawsuit investigations against FanDuel is how modern sports betting platforms (especially their mobile betting apps) may be contributing to a rise in frequent, high-risk wagering that produces significant harm.

States that have legalized sports betting, particularly with online and mobile access, have seen increases in personal bankruptcies, debt collections, and drops in credit scores, suggesting that the model may expose users to heightened financial risk.

For example, a recent study found bankruptcies rose about 28% in states with online sports betting.

Unlike traditional casino play, where users go to a physical location and are more aware of “time spent” and “money spent,” mobile sportsbooks such as FanDuel operate with constant access and personalized promotions.

These apps are alleged to use deceptive marketing tactics, including frequent bonus bets, “risk-free” offers, push notifications and event sponsorships, all designed to promote compulsive betting and capitalize on real-time engagement.

Plaintiffs claim that FanDuel’s systems encouraged habitual betting (even when users were suffering mounting losses and recognizing they could not stop) resulting in serious gambling related losses, emotional distress and in some cases the need for extensive treatment.

Lawsuits argue that frequent gamblers should be able to seek financial compensation to recover financial losses, cover therapy or rehab costs, and be compensated for long-term impacts tied to problematic gambling habits that resulted from aggressive platform design.

These legal claims underscore that online sportsbooks like FanDuel are a different breed of risk compared to casinos or slot machines where the pace, personalization and access can turn entertainment into a high-velocity harm machine.

FanDuel and similar companies could potentially be held accountable for how their mobile platforms and marketing practices affected vulnerable users.

What is Alleged in Gambling Addiction Lawsuits?

Recent lawsuits filed across the country claim that mobile sports betting companies like FanDuel and DraftKings knowingly designed products that fostered dependency and encouraged excessive wagering.

Plaintiffs allege that users developed gambling addictions or worsened existing gambling disorders after being targeted with constant offers, push notifications, and misleading promotions disguised as “free bets” or “risk-free wagers.”

These tactics, according to complaints, blurred the line between entertainment and addiction, especially for younger sports bettors who were new to online gambling.

Many claimants describe escalating gambling problems, mounting financial losses, and emotional distress that disrupted their lives and relationships.

The lawsuits argue that these companies should be held accountable for prioritizing profits over consumer safety and failing to protect known problem gamblers.

Common allegations in these lawsuits include:

• Creating app environments that encourage continuous and impulsive betting.
• Using “risk-free” and “bonus” promotions that misled users into thinking their losses were protected.
• Collecting user data to push targeted promotions toward high-frequency bettors.
• Ignoring or undermining self-exclusion and responsible gaming tools for addicted players.
• Marketing heavily to young adults and college-aged bettors through social media and sports partnerships.
• Designing betting systems that mimic the addictive reinforcement patterns of other behavioral addictions.

Cases and Regulatory Action Involving FanDuel

Public lawsuits and regulator actions are stacking up around FanDuel, most alleging unfair or deceptive practices in how the app markets and operates, while individual addiction claims (the focus of this page) center on a person’s specific financial harm and health impacts tied to product design (e.g., VIP inducement, ignored self-exclusion, constant promos).

City and state matters typically seek fines, injunctions, or policy changes to curb practices across sports betting apps; private cases seek compensation for a particular user who was given direct access to high-frequency betting and nudged to keep wagering.

Together, these tracks form the factual backdrop for individual claims: they do not prove liability in your case, but they help show the conduct at issue is being scrutinized by courts, regulators, and major newsrooms.

Below is a snapshot of notable FanDuel-related cases and enforcement:

• Oct. 1, 2024 – Patel v. FanDuel/Flutter (S.D.N.Y.): Former Jacksonville Jaguars employee Amit Patel sues FanDuel for $250M, alleging a VIP host used perks/credits and persistent outreach to keep him betting despite addiction red flags; reporting cites more than $1.1M in credits and extensive host contact.
• Apr. 3, 2025 – City of Baltimore v. DraftKings & FanDuel: Baltimore sues both operators for unfair and deceptive practices (e.g., “bonus bet” promos and targeted data use) that exacerbate compulsive gambling; complaint seeks penalties and injunctive relief.
• Apr. 4, 2025 – National VIP scrutiny: In-depth reporting details how VIP programs at FanDuel/DraftKings keep high-value bettors playing “no matter the cost,” and notes mounting litigation and proposed federal limits (e.g., the SAFE Bet Act).
• July 2024 – NJ DGE fine: New Jersey regulators fine FanDuel for accepting wagers on a PFL event that had already occurred—an example of operational lapses that sit adjacent to harm-prevention controls.
• Nov. 20, 2024 (issue discovered) / Jan. 23, 2025 (reported) – Iowa self-exclusion lapse: FanDuel tells regulators a problem affected lifetime self-exclusion; Iowa notes the company did not notify within the required timeframe.
• July 16, 2025 – Iowa IRGC fines FanDuel $125,000 for five violations tied to wagering/responsible-gaming obligations.
• July 15, 2025 – Massachusetts MGC fines FanDuel $15,000 for taking 7,155 unapproved LPGA bets (Mar 2023–Jun 2024); MGC approved the civil administrative penalty.

Who Qualifies for the FanDuel Addiction Lawsuit?

You may qualify for the FanDuel addiction lawsuit if you used online sports gambling apps like FanDuel and experienced significant gambling losses or mental health struggles linked to compulsive betting.

Many claimants describe patterns of betting behavior that escalated over time: placing larger wagers, chasing losses, and draining bank accounts in the process.

Lawsuits focus on individuals who suffered measurable gambling debt, emotional distress, or diagnosed gambling disorders after being targeted by the app’s promotions and push notifications.

These cases argue that gambling companies like FanDuel designed their platforms to encourage excessive play and make wagering more addictive than casino games.

If you have documentation of large financial losses, failed self-exclusion attempts, or therapy or treatment related to gambling addiction, you may meet the criteria for legal action.

TorHoerman Law handles these cases on a contingency fee basis, meaning there are no out-of-pocket costs unless compensation is recovered.

Claimants may be eligible to seek reimbursement for financial losses, mental health treatment, and other damages tied to FanDuel’s harmful practices.

If you or a loved one believe FanDuel’s app contributed to a gambling addiction, a free consultation can help determine if you qualify to join this emerging litigation.

Gathering Evidence for Gambling Addiction Cases

Building a strong case for sports gambling addiction requires detailed documentation that links your behavior and financial losses to the design and operation of the app.

Attorneys use this evidence to show how mobile gaming features encouraged problem gambling, leading to escalating losses and emotional harm.

A law firm experienced in these cases will focus on proving that the platform’s promotions, data use, and product design fueled the cycle of compulsive betting.

Keeping accurate records of your activity, especially when you placed multiple bets in a short period, can make a critical difference in demonstrating the scope of harm.

Useful forms of evidence include:

• Betting histories or account statements from FanDuel or other sports gambling platforms showing frequent or increasing wagers.
• Bank or credit card records detailing deposits, withdrawals, or overdrawn balances tied to gambling activity.
• Screenshots of app notifications or promotions that encouraged more betting or claimed “risk-free” wagers.
• Medical or therapy records diagnosing gambling disorder, depression, anxiety, or related mental health effects.
• Communications with the platform, including ignored self-exclusion or responsible gaming requests.
• Witness statements from friends or family members describing emotional changes or worsening problem gambling behavior.

Potential Damages in Gambling Addiction Lawsuit Claims

Individuals pursuing claims against mobile apps like FanDuel and DraftKings may be eligible for compensation covering both financial and emotional harm caused by excessive sports wagering.

These lawsuits argue that the platforms’ design and marketing encouraged frequent gambling, resulting in long-term consequences for users and their families.

Victims may seek damages not only for the money lost but also for the psychological and medical costs associated with addiction recovery.

Many claimants require therapy, rehabilitation, and financial counseling to rebuild stability and regain control of their lives.

Courts are beginning to recognize the real human and economic toll caused by predatory online betting systems and the need for fair restitution.

Potential damages may include:

• Recovered gambling losses, including money lost through compulsive or deceptive betting schemes.
• Costs of therapy or counseling to address gambling disorder, depression, anxiety, and related conditions.
• Rehabilitation expenses for inpatient or outpatient treatment addressing gambling addiction.
• Lost income or earning capacity caused by the time or focus lost to gambling behavior.
• Financial counseling and debt management services to repair damage from prolonged betting.
• Emotional distress and mental anguish linked to compulsive gambling and its effects on family life.
• Punitive damages, in cases where the court finds the platform’s conduct was reckless or deliberately harmful.

Resources for Victims of 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 Claims Involving Gambling Addictions

The rise of online sports betting has created a new wave of addiction cases affecting individuals and families nationwide.

Many people who turned to mobile apps like FanDuel and DraftKings for entertainment instead found themselves trapped in cycles of loss, stress, and dependency.

TorHoerman Law is actively investigating claims from individuals who suffered significant financial losses, emotional distress, or mental health issues related to gambling addiction.

Our team believes that gambling companies must be held accountable for deceptive marketing, weak responsible gaming systems, and the exploitation of vulnerable users.

If you or a loved one developed a gambling addiction, lost substantial money, or required treatment after using sports betting platforms, contact TorHoerman Law today for a free case evaluation.

You may be eligible to pursue compensation for your losses and treatment costs and help expose the predatory practices fueling modern gambling addiction.