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PUBLIC HEALTH ADVOCACY INSTITUTE (PHAI) FILES LANDMARK SPORTS GAMBLING LAWSUIT AGAINST DRAFTKINGS, FANDUEL, GENIUS SPORTS AND THE NATIONAL FOOTBALL LEAGUE (NFL)

  • The Public Health Advocacy Institute filed a product liability lawsuit in Philadelphia alleging that defendants developed & distributed unreasonably dangerous online sports betting products designed to maximize addictive microbetting behavior.
  • Plaintiffs Christopher Sage & Terry Thompson, Pennsylvania residents, claim they were lured into excessive betting through aggressive AI-driven technology, constant push notifications, & personalized VIP host interactions that continued after they requested to stop.
  • Defendants include DraftKings, FanDuel, Genius Sports Ltd., & various subsidiaries, with the complaint specifically naming the NFL as a key defendant due to its financial & operational role in the ecosystem.
  • The NFL is identified as the largest shareholder of Genius Sports from 2021 to 2025 & remains the second-largest shareholder today, while Genius Sports powers over 98% of the US sports betting market using officially licensed NFL data.
  • The lawsuit asserts that the NFL profits directly from increased betting volume through licensing deals & equity stakes, in addition to standard advertising & sponsorship revenue.
  • Legal claims against the defendants include violations of Pennsylvania's Unfair Trade Practices & Consumer Protection Law, design defects, failure to warn, negligence, & intentional infliction of emotional distress.
  • The complaint highlights that gambling addiction is clinically classified alongside heroin, cocaine, & tobacco addictions in the DSM-V & WHO guidelines.
  • Sports betting revenue in the US surged from $430 million in 2018 to a record $16.96 billion in 2025, with Pennsylvania generating nearly $775 million in revenue between July 2024 & June 2025.
  • PHAI Litigation Director Andrew Rainer & Executive Director Mark Gottlieb compared the industry's tactics to those of the tobacco industry, alleging a coordinated effort to hijack consumer brains & cause catastrophic harm.
  • The case is captioned Sage & Thompson v. DraftKings, Inc. et al. (No. 260303384) in the Court of Common Pleas of Philadelphia County, Pennsylvania.