FanDuel and DraftKings seek dismissal of Pennsylvania gambling addiction lawsuit

FanDuel and DraftKings have asked a Philadelphia court to throw out a lawsuit that says they used VIP incentives, personalized offers and promotional campaigns to keep a Pennsylvania bettor gambling despite signs of addiction. For high-risk operators and PSPs, the case matters because it tests how far courts are willing to push responsibility for customer protection when the wagering itself was lawful.

1. The case was filed earlier this year by the Public Health Advocacy Institute on behalf of Terry Thompson. He says his gambling escalated after he received personalised incentives, VIP benefits and other promotional offers designed to keep him playing.
2. One allegation centers on a personalised video message from Philadelphia Phillies star Bryce Harper, arranged through a third-party platform. Harper later said he was unaware of the video’s intended use. FanDuel and DraftKings have not directly addressed the Harper-specific allegation.
3. Both operators argue that VIP programmes and promotional offers are standard industry practices and comply with regulations. They also point to responsible gambling tools available to customers, including deposit limits and self-exclusion options.
4. In separate motions, the companies said they had no legal duty to intervene because Thompson’s gambling activity was lawful. They also said courts have previously rejected similar attempts to hold sportsbooks liable for compulsive gambling.
5. FanDuel has also asked the court to send the dispute to arbitration, arguing that Thompson accepted mandatory arbitration when he agreed to the operator’s terms and conditions. The court has not yet ruled on either motion.

If the court reaches the merits, the decision could help define how much exposure sportsbooks face when VIP teams, promo flows and customer retention practices are later framed as addiction-related conduct rather than ordinary marketing.