The FanDuel lawsuit docket now spans three overlapping fights: an older daily fantasy sports scandal that produced a federal multidistrict proceeding, a newer generation of cases arguing the sports betting app is designed to be addictive, and government actions by cities and state regulators. Most private claims are being pushed into individual arbitration under FanDuel’s terms of service, so class trials against the company have been rare.
Addictive Design Lawsuits Against the Sports Betting App
The most active front against FanDuel treats its betting app as a defective product rather than a neutral platform. The flagship case is Sage and Thompson v. DraftKings, Inc. et al. (No. 260303384), filed on March 24, 2026, in the Court of Common Pleas of Philadelphia County by the Public Health Advocacy Institute. It names FanDuel, DraftKings, Genius Sports, and the National Football League as defendants. The complaint alleges the platforms are “intentionally designed and implemented to be as addictive as possible,” likening them to slot machines rather than social gambling.1Bloomberg Law. Sports Betting Apps NFL Sued Over Addictive Product Designs Plaintiffs Christopher Sage and Terry Thompson single out live in-game microbetting, parlays, personalized push notifications, VIP host programs, and the use of artificial intelligence and machine learning to tailor gambling prompts to individual users.2PR Newswire. PHAI Files Landmark Sports Gambling Lawsuit Against DraftKings FanDuel Genius Sports and the NFL The NFL is named because of its financial stake in Genius Sports, whose real-time data powers the microbetting features. No substantive rulings had issued as of the filing.
More than 80 lawsuits have been filed against major sports betting operators, including FanDuel, with active cases in Pennsylvania, Illinois, New Jersey, and Massachusetts as of early 2026.3ConsumerShield. Gambling Addiction Lawsuits The theories tend to fall into a few groups:
- Design defect claims alleging the apps are unreasonably dangerous products built to maximize addictive behavior.
- Consumer protection claims challenging promotions marketed as “risk-free” or “no sweat” bets whose true terms are allegedly obscured.
- Negligence and failure-to-warn claims arguing operators failed to warn users or intervene when their own data showed signs of compulsive gambling.
- Intentional infliction of emotional distress claims aimed at algorithms that target losing bettors with tailored notifications and bonuses.
Plaintiffs’ attorneys are pursuing these as individual lawsuits. There is no certified class action for sports gambling addiction as of mid-2026, and no multidistrict litigation has been established for the addiction-focused cases.4ClassAction.org. Online Sports Gambling Addiction Lawsuits
City of Baltimore Sues Over “Targeting” Problem Gamblers
On April 3, 2025, the City of Baltimore sued FanDuel and DraftKings in Baltimore City Circuit Court, alleging their mobile gambling apps “target and exploit problem gamblers” in violation of the city’s Consumer Protection Ordinance. The city accuses the platforms of using misleading promotions to attract new users and deploying data analytics to identify users “least able to resist enticements to keep gambling.”5The Washington Post. Baltimore Sues DraftKings FanDuel Baltimore is seeking civil fines and injunctive relief rather than damages.
FanDuel and DraftKings removed the case to federal court. In November 2025, U.S. District Judge Stephanie Gallagher sent it back to state court, ruling that Maryland courts were better suited to interpret the local ordinance. The defendants appealed the remand order to the U.S. Court of Appeals for the Fourth Circuit, and the merits remained paused pending that appeal.6The Daily Record. Baltimore Sports Betting Lawsuit State Court Remand
California Class Action Over Daily Fantasy Sports
In December 2025, a separate class action, Criswell v. FanDuel, Inc. et al. (3:25-cv-10473), was filed in the U.S. District Court for the Northern District of California. The suit alleges FanDuel knowingly operates its “FanDuel Fantasy” daily fantasy sports contests in California in violation of state anti-gambling laws while deceptively marketing them as legal. It invokes the California Unfair Competition Law, the California Penal Code, and the California Consumers Legal Remedies Act.7ClassAction.org. FanDuels Daily Fantasy Sports Contests Are Illegal in California Class Action Lawsuit Alleges An amended complaint was filed in February 2026, and a motion hearing took place in June 2026 before Magistrate Judge Sallie Kim. The case remains active.8CourtListener. Criswell v FanDuel Inc
The Amit Patel $250 Million Lawsuit
The most publicized individual case was filed on October 1, 2024, by Amit Patel, a former financial manager for the Jacksonville Jaguars. Patel sued FanDuel in the U.S. District Court for the Southern District of New York for $250 million in compensatory and punitive damages, alleging the company knowingly exploited his gambling addiction and ignored its own responsible gaming and anti-money laundering protocols.9ABC News. Jaguars Employee Amit Patel Sues FanDuel $250 Million
According to the complaint, Patel transferred about $20 million to FanDuel between 2019 and 2023 and received over $1.1 million in gambling credits along with gifted trips to the College Football Playoff, the Masters, and the Formula 1 Miami Grand Prix. His VIP host, identified as Brett Krause, allegedly communicated with him up to 100 times a day, sometimes calling to ask why he had not placed a bet, and allegedly acknowledged the company was “breaking AML” rules and told Patel to use a personal phone to avoid detection by FanDuel’s compliance team.10NBC New York. Ex-Jaguars Employee Stole $22M Sues FanDuel Gambling Addiction The complaint alleges FanDuel knew Patel was an NFL employee and therefore prohibited from betting on NFL games.
Patel is serving a six-and-a-half-year federal prison sentence after pleading guilty in December 2023 to wire fraud and illegal monetary transactions for stealing over $22 million from the Jaguars. On May 7, 2026, Judge Vernon S. Broderick granted FanDuel’s motion to compel arbitration and stayed the case, sending Patel’s claims out of court.11PACER Monitor. Patel v Fan Duel Inc et al
The Daily Fantasy Sports Scandal and MDL Background
FanDuel’s litigation history opened in late 2015, when a scandal broke over allegations that FanDuel and DraftKings employees used nonpublic contest data to gain an edge on each other’s platforms. New York Attorney General Eric Schneiderman issued a cease-and-desist declaring FanDuel’s daily fantasy contests “illegal gambling under New York law,” Nevada regulators classified the contests as gambling, and the FBI and U.S. Department of Justice opened a probe.
More than 80 class actions followed, consolidated by the Judicial Panel on Multidistrict Litigation as In re: Daily Fantasy Sports Litigation (MDL No. 2677) in the U.S. District Court for the District of Massachusetts before Judge George A. O’Toole, Jr.12Judicial Panel on Multidistrict Litigation. In Re Daily Fantasy Sports Litigation Transfer Order A judge later ruled that FanDuel’s arbitration clauses were enforceable, forcing users to pursue claims individually.13ForThePeople.com. DraftKings FanDuel Users May Be Owed Compensation The New York investigation ended in October 2016 with a $6 million penalty and marketing reforms; FanDuel acknowledged the findings that its advertising had been “misleading and deceptive” without explicitly admitting or denying them.14The New York Times. DraftKings and FanDuel to Pay $6 Million Each to Settle New York Claims A later MDL settlement in 2021 covered family members of FanDuel players in five states, simplifying spousal exclusion requests and directing $375,000 to responsible gambling groups, with no cash payments to rank-and-file class members but no release of their claims for actual financial losses either.15Bloomberg Law. FanDuel Reaches Settlement With Gamblers Family Members
State Regulatory Fines
Separate from private lawsuits, state gaming regulators have penalized FanDuel. On July 16, 2025, the Iowa Racing and Gaming Commission fined the company $125,000 for five violations, including accepting wagers on prohibited Super Bowl, soccer, golf, and Olympic contests. The largest single component, $30,000, was for failing to maintain functioning responsible gaming options on the platform. FanDuel’s counsel told the commission it had added employee training, operational checklists, and automation, and had returned revenue from the prohibited bets.16Next.io. Iowa Gaming Commission Fines FanDuel $125K
The Massachusetts Gaming Commission fined FanDuel $15,000 on July 15, 2025, after the company accepted 7,155 unapproved LPGA bets between March 2023 and June 2024.17Torhoerman Law. FanDuel Lawsuit In January 2025, FanDuel also disclosed to regulators an error in its lifetime self-exclusion system that had been identified in November 2024; Iowa noted that the company had missed the required reporting window.
Why Most Cases End Up in Arbitration
FanDuel’s terms of service, updated as of March 2026, require that “all disputes between you and us will be resolved by binding and final arbitration” and include a class action and jury trial waiver.18FanDuel. FanDuel Terms of Use Courts have enforced that clause repeatedly, most recently in Patel in May 2026.11PACER Monitor. Patel v Fan Duel Inc et al The practical effect is that even large individual claims tend not to reach a jury, and class treatment of user claims has been blocked in case after case.
A Recent Ruling Working in FanDuel’s Favor
An April 2025 Third Circuit decision, Antar v. MGM Resorts International, has become important background for the addiction cases even though it did not involve FanDuel. Senior Circuit Judge Jane Richards Roth affirmed dismissal of a gambler’s negligence and consumer fraud claims against BetMGM, writing that New Jersey law does not impose a duty of care on casinos to prevent compulsive gambling, a position courts have “uniformly” adopted.19Courthouse News Service. Third Circuit Says Gambling Addict Claiming Exploitation Cant Sue MGM The panel also rejected the consumer fraud theory, finding no “ascertainable loss” because the plaintiff received “exactly what he thought he was purchasing — a gambling experience where winning was not guaranteed.” The reasoning is favorable to FanDuel in jurisdictions that follow New Jersey’s approach.
Proposed Federal Legislation
Federal lawmakers have responded to the litigation wave with the SAFE Bet Act (Supporting Affordability and Fairness with Every Bet Act of 2025), introduced in March 2025 by Rep. Paul Tonko of New York in the House (H.R. 2087) and Sen. Richard Blumenthal of Connecticut in the Senate (S. 1033). The bill would set minimum federal standards for sports wagering operators, including affordability checks, deposit limits, advertising restrictions, a national self-exclusion list, and civil penalties.20Congress.gov. SAFE Bet Act S.1033 Neither version has moved past its committee referral, and the House bill has zero cosponsors.21Congress.gov. SAFE Bet Act H.R.2087