Online Gambling Companies Facing Lawsuits as More People Become Addicted

Plaintiff’s Lawyers Have Continued Filing Lawsuits Against Online Sports Betting Companies With Claims of False Advertising and Addiction

NEW YORK, NEW YORK (November 28, 2025) – Online gaming companies have continued to expand in recent years, as the industry is pulling in nearly $14 billion in 2025 alone.

Plaintiff attorneys began to file lawsuits against these companies for various promotion tactics that they use. Among other things, they would advertise “risk-free” betting or “no-sweat” bets.

Many have claimed that these platforms failed to warn customers their products may lead to compulsive or addictive behaviors. However, these types of claims tend to face rather steep barriers.

In particular, courts in other states have declined to impose a duty on casinos and other companies to prevent addiction. Even in cases where addiction qualifies as an injury, there are challenges in terms of demonstrating causation.

Attorneys who are pursuing this litigation would do best to scrutinize the practices that these companies take towards targeting young people. Law firms would also do well to conduct an internal audit of responsible gaming policies within these companies.

Companies that have shown they take user safety seriously have thus far tended to do better in litigation.

Liability for Harm Caused by Online Gambling

Gambling addiction can lead to serious harms for individuals and their families. According to UC San Diego Today, “A new study, published in JAMA Internal Medicine and led by researchers from the University of California San Diego Qualcomm Institute and School of Medicine, reveals a dramatic increase in sports betting and gambling addiction help-seeking since the landmark Murphy v. NCAA Supreme Court decision in 2018 paved the way for states to legalize sports betting.” These companies have made a number of claims that could either be considered misleading or false.

• Some of these companies have given consumers inflated payout percentages.
• Some of these companies have used language that wouldn’t imply users are guaranteed to win or that certain bets are “risk-free.”
• Some of these companies have failed to make it clear that certain bet thresholds must be met before payouts.
• Some of these companies have arguably misrepresented the nature of promotional payouts.

Companies that make their money from online sports gambling could face liability under several theories of negligence. While companies are allowed to advertise to customers, it is illegal for them to engage in false advertising. Pursuant to New York’s General Business Law § 349-350, companies cannot use advertisements or promotions that contain false, deceptive, or misleading claims. Claiming that any set of bets is “risk-free” could arguably be interpreted as misleading or outright false.

Steps to Take After Being Harmed by Online Gambling

Online gambling can lead to serious and lasting real-world harms. Many people have gambled away their savings or even lost their homes due to their addiction. Any type of addiction can be enormously detrimental to a person’s life. Any person who has been harmed by their continued use of online gambling sites should take certain actions to protect their legal rights.

• Evidence Preservation: Be sure to document all of the gambling activity and betting history that you have with these companies.
• Communications: save all the emails and push notifications that you received. These messages could help support claims of deceptive advertising.
• Medical Records: Collect all of the medical and psychological records related to evaluations or treatment for gambling addiction.
• Attorney Consultation: Consult an attorney as early as possible. They can take steps to preserve evidence and evaluate the unique facts of your case.

There is a tremendous peace of mind that can come with having an experienced attorney handle your case. They can evaluate your case free of cost and let you know what your legal options are. There are also no upfront costs to hiring an attorney to help. They get paid entirely from the opposing party if they’re able to successfully resolve your case.

Getting Legal Help After Losing Money from Online Gambling

We at GLK Law extend our best wishes to all of the people who have been harmed by online gambling. These companies have experienced aggressive growth due in part to many of their misleading advertising claims. There needs to be a thorough investigation into all of the marketing tactics that these companies have used, especially when it comes to targeting children.

Have you or someone that you care about developed an online gambling addiction? You may be entitled to financial compensation. Our team of experienced personal injury attorneys is here to assist you in any way that we can. We are committed to helping victims understand their rights and holding negligent parties accountable for their wrongful actions. Whether you just have legal questions or need any other type of support, we are here to serve your needs. You can reach out to us anytime at (516) 908-9792.