A lawsuit filed Tuesday in Pennsylvania state court accused sportsbooks FanDuel and DraftKings of using data supplied by the NFL to offer a “known addictive product,” as well as VIP hosts to encourage two plaintiffs to keep betting, eventually leading to gambling disorders and financial losses.
The NFL and its data partner Genius Sports are named defendants in the suit, in addition to FanDuel, DraftKings and five sportsbook employees who were assigned as VIP hosts to plaintiffs Christopher Sage and Terry Thompson.
The NFL declined comment. ESPN has reached out to DraftKings, FanDuel and Genius Sports for comment.
The complaint alleges that DraftKings and FanDuel used the NFL’s live data feeds and artificial intelligence to funnel customers to in-game micro-betting, a form of gambling believed to be more addictive, according to the lawsuit. Attorneys for Sage and Thompson say the two Pennsylvania men developed severe gambling disorders and lost more than $2 million combined to the sportsbooks over several years.
Micro-betting, where bettors wager on in-game moments such as a free throw in basketball or a specific play in football, requires a near-real-time data feed to accept and resolve bets during contests. The NFL provides an official data feed to sportsbooks through Genius Sports, in which it owns an equity stake. DraftKings and FanDuel have said that live betting accounts for approximately 50% of the wagers made on their platforms.
Attorneys for the plaintiffs say both men had gambled without issue for nearly two decades.
“That all changed once they started using the FanDuel and DraftKings Sportsbook Apps,” the complaint states. “Within just a few years of placing their first microbets on the Sportsbook Apps, Plaintiffs nearly lost everything.”
The attorneys said Thompson and Sage were enticed to keep betting by VIP hosts offering perks.
Thompson started betting with FanDuel around October 2020 and DraftKings in 2022 and lost approximately $1.83 million to the sportsbooks, according to the complaint. He was given VIP status that included perks such as a $500 bottle of champagne, and tickets and hotel accommodations to attend Super Bowl LVI in California, according to the complaint.
The attorneys allege Thompson’s host knew he had demonstrated problematic behaviors because she had suggested he take breaks from betting after losing streaks.
“[W]hat do we think about taking a timeout and enjoying the holidays with the family and starting fresh after the new year?” the FanDuel host texted Thompson on Dec. 18, 2022, according to the complaint.
A month later, the host asked Thompson to call her about an “emergency,” which, according to the complaint, turned out to be a gift package to Super Bowl LVII in Arizona.
DraftKings VIP hosts also frequently messaged Sage and helped arrange free accommodations for a bachelor party in Atlantic City. One of his hosts sent him pictures of herself at different sporting events, according to the complaint.
Sage placed himself on Pennsylvania’s self-exclusion gambling list on March 15, 2025, the same month he was formally diagnosed with a gambling addiction disorder, but continued to receive messages from his DraftKings VIP host, according to the lawsuit.
The plaintiffs are seeking a jury trial, compensation for damages and attorney fees, and to prohibit the defendants from continuing the alleged wrongful conduct.
Disclosure: ESPN has business partnerships with DraftKings and the NFL.
