The DraftKings logo is displayed at the sportsbook's company headquarters in Boston's Back Bay.
The DraftKings logo is displayed at the sportsbook's company headquarters in Boston's Back Bay.Charles Krupa/Associated Press
The same public health advocates who once went after Big Tobacco are suing the two leading online sportsbooks in the US, along with the NFL and its official statistics distributor, over the marketing of what critics call “unreasonably dangerous” sports betting on wagering platforms.
Boston-based DraftKings and New York-based FanDuel, the two dominant online sports betting companies, are accused of using artificial intelligence to develop and distribute “highly addictive” wagering opportunities, according to the product liability lawsuit filed in state court in Pennsylvania by attorneys with Northeastern University’s Public Health Advocacy Institute.
Christopher Sage and Terry Thompson, two Pennsylvania residents who say they developed gambling addictions, claim their exposure to the sports betting apps and the apps’ marketing tactics got them hooked. One claimed losses of more than $1.5 million.
Among the tactics the lawsuit cites: Pairing the bettors with “VIP hosts” who provide perks and promotional offers, including tickets to games, to encourage betting.
The complaint also focuses on “microbets,” or in-game wagers on fleeting aspects of sporting events, such as baseball pitch speeds or whether the next play in a football game will be a run or pass.
In football, such wagers are fueled by fast-moving data crunching provided by Genius Sports, a sports data and analytics company that has an exclusive arrangement with the league. The NFL is one of Genius’ largest shareholders.
“These defendants, including the NFL, are engaging in a coordinated effort to convert ordinary sports fans into nonstop gamblers,” Mark Gottlieb, executive director of the Public Health Advocacy Institute. “By coordinating their use of immersive marketing, AI, cloud computing and algorithms customized for every customer, they hijack customers’ brains and cause catastrophic harm to lifelong fans like Mr. Sage and Mr. Thompson.”
DraftKings, FanDuel and the NFL did not respond to the Globe’s requests for comment. A spokesman for Genius Sports said the company does not comment on ongoing litigation.
In media interviews leading up to March Madness, DraftKings has touted its recent efforts to promote responsible gaming. The company offers built-in tools to manage betting, including self-determined time and budget limits, and DraftKings staffers review betting activity to spot potentially problematic behavior. In 2025, the company reported tens of millions of interactions with bettors through its responsible gaming platform.
Critics say microbets should be reined in to minimize the risk of gambling addiction. A bill banning in-game bets in Massachusetts recently cleared an initial legislative hurdle on Beacon Hill, while a separate proposal expanding online gambling lost traction, signaling a possible shift in attitudes toward online betting.
Separate litigation against DraftKings has sputtered in Pennsylvania, where a federal judge recently dismissed a class-action case, ruling the sportsbook does not have a duty to protect gamblers from addictions.
In another pending Massachusetts case against DraftKings led by the Public Health Advocacy Institute, the company is accused of using unfair and deceptive marketing in offering cash bonuses to people opening sportsbook accounts. A judge recently allowed the case to move forward to trial.
Joey Flechas can be reached at joey.flechas@globe.com. Follow him on X @joeflech.