FanDuel and DraftKings Targeted in Addiction Lawsuit
The Public Health Advocacy Institute (PHAI) is backing a new lawsuit in Massachusetts against DraftKings and FanDuel. The complaint alleges that the two sportsbook operators created an addictive product for users.
Massachusetts resident Daniel Arroyo filed the case in Suffolk County Superior Court. His complaint challenges both the design and promotion of DraftKings' and FanDuel's online betting apps. Arroyo alleges that the platforms exploit user vulnerabilities by granting constant smartphone access. He claims that accessibility turns a simple tap into an unlimited path for compulsive betting.
Related: DraftKings Sued for Lack of Online Tools for Bettors with DisabilitiesThe filing also takes aim at VIP programs, "risk-free" bets, and promotional messaging used by both operators. Arroyo argues those features are part of the conduct that kept him betting. The lawsuit was filed by the same attorneys involved in a California case against Meta and YouTube. That case found the companies liable for designing platforms that attract young people and include features that foster addictive behavior.
Arroyo's complaint says DraftKings and FanDuel profit from problem gambling. It states that the companies' businesses depend on customer losses and says that is not incidental to the model. According to the filing, the more money a customer loses, the more revenue the operators generate. Arroyo alleges that this dynamic is central to how the businesses function.
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Ignoring the Signs
The lawsuit says Arroyo wagered nearly $150,000 on DraftKings in 2023 before he moved his betting to FanDuel. It adds that he placed more than 8,000 wagers with FanDuel. DraftKings allegedly assigned him a VIP manager because of his frequent betting activity. That manager allegedly offered bonus wagers, personalized offers, and sports event tickets to keep him engaged.
Arroyo also alleges FanDuel knew of his gambling addiction after he wagered $196,639 on the platform, nearly double his pre-tax income in 2023. The complaint says FanDuel still encouraged him to keep betting through a VIP manager and promotions. His wagering allegedly jumped to $1.3 million in 2024. The filing says that the total then reached $1.5 million last year, more than 15 times his income for that year.
Between DraftKings and FanDuel, Arroyo says his total net losses were about $200,000. The lawsuit states that he has since entered problem gambling treatment and lost his ability to work. He is seeking compensatory damages for his injuries and losses. That request includes gambling losses on both platforms and lost earnings tied to his alleged inability to work.
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