Attorneys working with ClassAction.org are seeking plaintiffs to file individual lawsuits against the two largest online sportsbooks, claiming the platforms were negligently marketed to minors, engineered to be addictive, and lacked proper safeguards.

The potential lawsuits allege that DraftKings and FanDuel maximized profits by luring in users — including underage gamblers — with deceptive promotions such as “risk-free” bets, then using push notifications, personalized offers, and even dedicated “VIP hosts” to keep heavy losers spending.

According to attorneys involved, the platforms may have used internal data to target individuals showing signs of gambling problems, sending them “pings” and individualized rewards even when betting was clearly causing harm.

Addiction and underage use at center of legal claims

The legal effort is focused on two groups: anyone diagnosed with gambling disorder or a related mental health condition after using FanDuel or DraftKings, and individuals who used either platform before turning 18.

Attorneys working with ClassAction.org say they are filing cases on a contingency-fee basis, meaning clients pay nothing unless the lawyers win money on their behalf.

Potential compensation could cover gambling losses, mental health treatment costs, and harm to work, schooling, or personal relationships. Some lawyers estimate successful claims could range from 15,000 to more than 300,000, depending on individual circumstances.

“People have suffered real financial losses due to online sports betting addiction — in at least one case, nearly a million dollars,” the attorneys said in a statement.

Allegations of intentional design to hook players

The lawsuits are expected to argue that DraftKings and FanDuel knew about the serious risks of gambling addiction yet failed to warn users or take meaningful steps to prevent harm.

Specific allegations include:

Misleading “risk-free” and “bonus bet” promotions that obscure costly fine print
Push notifications and individualized offers designed to keep players engaged
Easy money-loading features that reduce friction for compulsive bettors
Assignment of personal VIP hosts to users with heavy losses to encourage continued spending

For underage users, the lawsuits may claim that the companies groomed young people for addiction by exposing them to fantasy sports contests before they were legally old enough to gamble, and that targeted advertising intentionally reached minors despite research showing rising addiction rates among college students.

A history of legal challenges

Both companies have faced numerous class action lawsuits in recent years.

FanDuel has been sued over alleged false advertising, withholding user deposits, and misrepresenting real-time game information. A December 2025 lawsuit claimed FanDuel illegally operates daily fantasy sports contests in California, where online sports betting remains prohibited.

DraftKings has faced similar claims, including lawsuits over deceptive bonus promises, canceled winning bets, and inconsistent rules during a national championship competition. Two separate lawsuits filed in Massachusetts (2023) and New Jersey (2025) alleged the company intentionally targeted young men vulnerable to addiction with “risk-free” first-bet offers.

Legal landscape and eligibility

Online sports betting is currently legal in 31 states and Washington, D.C., according to the American Gaming Association. It remains illegal in 17 states, including California, Texas, and Georgia.

Attorneys say individuals may qualify for a lawsuit if:

A child under 18 created and used a DraftKings or FanDuel account
An adult used the platforms while under 18
A user was diagnosed with gambling disorder, depression, anxiety, suicidal ideation, or suffered another gambling-related injury after using the platforms

The cases are being pursued as individual lawsuits rather than class actions, attorneys said, because the harm — including mental health treatment, financial loss, and damage to relationships — is severe enough to justify individual litigation.

For support with gambling problems, the National Problem Gambling Helpline is available at 1-800-MY-RESET.

“Problem gambling support should never be limited to a single moment or a single definition of harm,” said Derek Longmeier, President of the NCPG Board of Directors. “1-800-MY-RESET reinforces that the National Problem Gambling Helpline is available at any stage—whether someone is worried about themselves, concerned about a family member, or simply looking for trusted guidance. Making the Helpline number easier to remember is a practical, meaningful step toward reducing barriers to care.”

“With gambling now more accessible than ever, the National Problem Gambling Helpline is a critical lifeline,” said NCPG Executive Director Heather L. Maurer, MA, CAE. “Making the number easier to remember helps ensure people across the country can quickly connect with high-quality, confidential support when they need it.”