Lawsuits allege major sportsbooks engineered their apps to keep vulnerable users gambling — targeting known problem bettors with VIP perks and bonuses while self-exclusion tools failed or were ignored.
Since the 2018 Supreme Court decision striking down the federal sports-betting ban, mobile sportsbooks like DraftKings, FanDuel, BetMGM, and Caesars have expanded into dozens of states. Lawsuits allege the apps were built around the same variable-reward mechanics as casino games — push-notification promos, "risk-free" bet offers, and live in-game betting designed to maximize betting frequency.
A central focus of the litigation is VIP and host programs. Suits allege sportsbooks used their own data to identify heavy and problem gamblers, then assigned personal hosts who offered bonuses, credits, and gifts engineered to keep them betting — in some cases while users were on self-exclusion lists or had disclosed gambling problems.
Plaintiffs also allege self-exclusion and deposit-limit tools were ineffective, easily bypassed, or ignored — with excluded users continuing to receive promotional outreach. Claims are being brought under consumer-protection, unjust-enrichment, and negligence theories in multiple jurisdictions.
Litigation is early-stage and expanding — individual and class claims are being filed in multiple jurisdictions, and courts are weighing arbitration clauses and consumer-protection theories. Consolidation efforts and new filings continue to develop, and qualifying criteria are evolving.
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