DraftKings and FanDuel Seek Gambling Addiction Lawsuit Dismissal

Sportsbook operators FanDuel and DraftKings have asked a Philadelphia court to dismiss a lawsuit that alleges they contributed to the gambling addictions of two bettors.  

The lawsuit, filed in March by the Public Health Advocacy Institute on behalf of the two men, Terry Thompson and Christopher Sage, alleges that sportsbook operators encouraged them to continue wagering despite signs of gambling addiction.  

Thompson said he lost nearly $1.8 million after opening his FanDuel account in 2020, while Sage alleges his losses were around $175,000 after joining DraftKings in 2019. 

In court filings, attorneys representing the two companies argued that the claims are legally flawed and cited court decisions holding that the best sports betting sites and other gambling operators have no duty of care to protect customers from the consequences of lawful wagering. 

The operators also say the claims fall outside Pennsylvania's two-year statute of limitations for product liability actions and that their mobile sites cannot be treated as products. FanDuel has additionally argued that the issue should be addressed through arbitration.  

The case attracted wider national attention when it was reported that a FanDuel VIP manager sent Thompson a personalized video recorded by Philadelphia Phillies player Bryce Harper. Harper later said he was unaware the video would be sent to a customer with a gambling addiction.  

Sports technology company Genius Sports and the NFL have also filed to dismiss the case. Genius Sports argued it supplies sports data and has no control over sportsbook issues, while the NFL said the Pennsylvania court lacks jurisdiction over the league.  

Former DraftKings trader charged in alleged betting scheme 

DraftKings also came under fire earlier in the month when it was revealed that a former DraftKings trader had been charged in Nevada for his part in an alleged betting scheme. The case involves trader Samuel Silverman and a Fresno State men's basketball player accused of manipulating his performance during a game in January 2025.  

According to the regulator that oversees the Nevada sports betting market, the Nevada Gaming Control Board, Silverman was arrested in Las Vegas in May and has pleaded not guilty to two gambling-related charges.  

Investigators alleged that Silverman conspired with former Fresno State players Mykell Robinson and Steven Vasquez, as well as another former DraftKings employee, Matthew Martin, to profit from wagers on Robinson's individual stats during Fresno State's game against Colorado State.  

Martin is accused of making wagers  of around $2,200 at BetMGM, which gave net winnings of $15,950. Investigators said the proceeds were then distributed among those involved. 

DraftKings confirmed Silverman and Martin worked at its Las Vegas office in 2025 but that neither was involved in creating college basketball odds. The operator also said its own review found no evidence that inside information was used.  

The Nevada Gaming Control Board said other suspects were still under investigation, while the NCAA has already ruled Robinson and Vasquez ineligible for violation of its gambling rules.