Plaintiffs in the lawsuit against FanDuel and DraftKIngs say mobile sports betting apps have promoted addictive gambling behavior.
A group of New Orleans sports bettors has filed a lawsuit against gaming companies FanDuel and DraftKings, claiming that their business models use app features that enticed them to gamble away tens of thousands of dollars.
The three plaintiffs filed the class-action lawsuit in the Orleans Parish Civil District Court on Oct. 22 against the two gaming companies as well as the Amelia Belle Casino and Bally’s Baton Rouge. The plaintiffs – Adrian Payton, Toi Smith and Yolanda Perkins – accuse the defendants of wrongful conduct, violations of the Louisiana Products Liability Act, breach of contract and negligent software deployment.
“Upon information and belief, the individualized tracking and personalized features of the FanDuel and DraftKings apps are part of the algorithm created to intentionally addict the user and constantly draw them back to the app to continue to place bets,” the lawsuit states. “These features are used to target problem gamblers, especially those with continued losses.”
Since 2022, when the state Gaming Control Board opened the state’s mobile sports-betting market, the plaintiffs have wagered tens of thousands of dollars – with one of them spending at least four hours per day on FanDuel – as the apps encouraged more and more betting through push notifications, targeted ads, bonuses and deposit matches, according to the complaint.
“Mr. Payton uses his debit and credit cards to cover his bets on the app, and he has also had to take out a bank loan to pay his betting debts,” the lawsuit says. “He has wagered $88,716.27 and has confirmed losses of $25,728.10.”
While the plaintiffs contend the apps led to financial and psychological damages, FanDuel rejects the lawsuit’s allegations and says its app contains features that allow wagerers to control their impulses.
“The claims in this lawsuit are not just false but completely untethered from reality,” a FanDuel spokesperson told the Louisiana Record in an email. “Millions of people use FanDuel every day as a form of entertainment and to have fun, and this lawsuit ignores the reality of how they engage with the product.”
The legal complaint also ignores the “robust and easy-to-use suite of tools that support informed and controlled play,” the spokesperson said, adding that these tools include deposit limits, timeouts and the means to bar themselves from using the app to avoid problem gambling.
Sports gambling advocates also cite a National Council on Problem Gambling study that found levels of risky gambling conduct declined by 27% between 2021 and 2024. Other studies show sports gambling participation remains below what it was in the 1980s and 1990s and that 97% of sports bettors say their hobby never led them to miss a bill payment.
The median sports wagerer spends about $63 per month on gaming, compared to $329 per month on dining out, according to a 2025 NerdWallet study.
But the lawsuit alleges that companies such as FanDuel maintain extensive data on wagerers in order to provide rewards designed to keep people betting, including those with gambling disorders.
Though other nations require sports-betting companies to use data to identify problem gamblers who should be cut off, this does not happen in the U.S., according to the complaint.
“What (the) defendants are doing in the United States, and in Louisiana … is the opposite – they use creative, algorithmically crafted inducements to keep people in the game, even when it is clear the game is causing those users serious harm,” the lawsuit says.
