Gambling operators FanDuel and DraftKings are taking a stance against a lawsuit in Philadelphia that accuses the two companies of taking advantage of a customer’s gambling addiction, triggering a legal fight that could unveil how the industry often struggles to protect users from compulsive betting. It is unclear whether the case will proceed or move to arbitration.
The Operators Denied Taking Advantage of the Plaintiff
The Public Health Advocacy Institute filed the legal challenge earlier this year on behalf of Terry Thompson, a Pennsylvania bettor whose gambling behavior spiraled out of control. The complaint accuses FanDuel and DraftKings of encouraging the man to keep playing via personalized perks and VIP programs despite clear signs of addiction.
A personalized video message by Philadelphia Phillies star Bryce Harper has drawn particular attention. The video, arranged through a third-party platform, was allegedly part of an ongoing effort to keep Thompson playing. Harper has since confirmed that he did not know the message’s purpose and would not have participated had he known the context.
Had I known FanDuel’s true intent, I would not have made the video. The same is true had I known anything about Terry or his situation.
Bryce Harper
The two companies have not addressed these specific allegations but argue that promotional offers and VIP programs are common in the industry and comply with regulatory guidelines. FanDuel and DraftKings also remarked that tools to control problem gambling, such as deposit limits and self-exclusion, are freely available to users.
The Case May Move to Arbitration
Lawyers from both gambling companies are now asking the court to dismiss the case. Recent filings argue that the legal challenge incorrectly assumes that sportsbooks have a legal duty to intervene when a customer exhibits signs of excessive, but otherwise lawful gambling. They contend that courts have previously rejected that notion, even in cases involving compulsive gambling.
FanDuel also made a separate attempt to dismiss the case, arguing that it must be resolved via arbitration. The company argued that Thompson had accepted its Terms and Conditions, agreeing to resolve any complaints via mandatory arbitration. Such a development would be a major win for the gambling operators, as it would shield them from public scrutiny.
The judge has yet to rule on the motions, leaving the next step unclear. If the court allows the case to proceed, it could pave the way for similar legal challenges and perhaps even change the way operators design promotions and interact with customers. For now, both DraftKings and FanDuel are seeking to stop the case before it reaches that stage.