The Growth of Popular Apps Like DraftKings, FanDuel, BetMGM Has Brought a Plague of Gambling Addiction and Subsequent Legal Claims by Victims
MANHATTAN, NEW YORK (January 9, 2025) – New York legalized online sports gambling in 2022 as a variety of sports betting companies started to gain traction.
These companies include DraftKings, FanDuel, and BetMGM. Customers have been lured into using these apps over promises of “risk-free bets” or “no sweat” bets.
As these companies have begun to take hold, they have led to a deluge of compulsive and destructive gambling addiction. In many cases, this has led to the financial ruin of individuals and families.
This has also led to a series of lawsuits against the companies that made the apps. These lawsuits allege that their products were designed to be addictive and that they failed to protect vulnerable users.
Who May Qualify for a Civil Claim?
Not every person who has placed a bet on these sites will qualify to have a legal claim. There are several factors that attorneys will consider when taking on these claims. In this section, we’ll explore who may be eligible to pursue a claim. What follows below are a few of the factors that will typically indicate a person has a valid claim that can move forward.
- Medical Diagnosis: The strongest cases typically involve a plaintiff that has a formal diagnosis for a gambling disorder or an addictive behavior disorder that is related to gambling. This diagnosis may come from a variety of sources, including a primary care physician or a psychiatrist.
- Severe Financial Losses: The strongest cases will typically involve incidents where people have suffered severe financial losses. This may include instances where a person loses tens of thousands or even hundreds of thousands of dollars. The losses may have led to drained savings accounts, debt, bankruptcy, or foreclosure.
- Mental Health Cases: The strongest cases will typically involve a person who has suffered severe mental distress or even suicidal thoughts as a result of their addiction. Victims may have attempted suicide or required hospitalization for a mental health crisis.
In particular, it’s typically better when fewer platforms are involved. This can make it easier to prove that one company specifically acted wrongfully. Another major consideration is the age of the person when they started gambling. Younger users are more vulnerable and may have stronger claims. Despite these criteria, every case is evaluated individually and may be stronger or weaker depending on its unique set of facts.
What These Lawsuits Are Really About
Gambling addiction has continued to grow in the United States. According to one study by UC San Diego, “Parallel with the growth in sportsbooks, internet searches for help with gambling addiction, such as “am I addicted to gambling”, have cumulatively increased 23% nationally since Murphy v. NCAA through June 2024. This corresponds with approximately 6.5 to 7.3 million searches for gambling addiction help-seeking nationally, with 180,000 monthly searches at its peak.” These lawsuits take on challenging questions.
- Are these companies allowed to use behavioral science and data analytics to enable vulnerable users to become addicted?
- Are these companies able to identify compulsive gamblers through their betting algorithms?
- Are these companies incentivized to push betting on vulnerable users?
- Can these companies fail to provide meaningful safeguards or intervention and get away with it?
Seeking accountability is at the heart of the legal claims against the large sports betting companies. They have made billions of dollars by offering a service that routinely leads to the financial ruination and even suicide of countless users. They have also done this by making spurious and specious claims and marketing campaigns. If you have become addicted to online gambling, there is help available. You may also have legal recourse through a civil claim.
Getting Legal Help for Gambling Addiction
We at GLK Law extend our best wishes to all of the people who have suffered as a result of their gambling addiction. These companies have profited billions as they continue to target vulnerable users. It is our sincere hope that the pending litigation will turn the tide.
Have you or someone that you care about struggled with an online gambling addiction? You may have legal recourse. Our team of experienced personal injury attorneys is here for you. We are committed to helping victims get the medical and financial support that they need to move forward with their lives. Whether you just have legal questions or need any type of support, we are here to serve your needs. You can reach out to us anytime at (516) 908-9792.
