The Public Health Advocacy Institute (PHAI) has taken legal action against DraftKings, FanDuel, Genius Sports, and the NFL.
Accusations by PHAI suggest that online sports betting platforms aggressively promote addictive live in-game microbets.
Genius Sports is the exclusive provider of the NFL’s live data and statistics, which are then utilized by DraftKings and FanDuel to offer various live betting options.
Live betting comprises approximately 55% of all wagers, with esports seeing an even higher percentage. Oddin’s data indicates that major esports games have over 70% of live bets, with Dota 2 leading at 86%.
VIP Hosts Tempted Men Into Microbetting
The plaintiffs in this legal case are two Pennsylvania residents, Christopher Sage and Terry Thompson. They allege that FanDuel and DraftKings enticed them into engaging in more and more microbets.
Both companies assigned VIP hosts to Sage and Thompson, who supposedly lured them with special offers, invitations to sports events, and gifts.
The lawsuit identifies three DraftKings VIP hosts: Dyleisha Lewis, Peter Donahue, and Shaun Gordon, along with two FanDuel hosts, Bryttani Morgan and Michael Sonbeek.
Morgan and Sonbeek are accused of encouraging Sage to lose more than $130,000 in bets at FanDuel. Thompson’s losses were significantly higher, exceeding $1.5 million.
Thompson lost $336,000 at DraftKings, while Sage lost $40,000. Sage eventually excluded himself from online gambling in March 2025. Despite this, Lewis reportedly continued to contact him with promotions and gifts.
In the last quarter of 2025, DraftKings generated $1.35 billion in revenue from sports betting, marking a 63% increase from 2024 and the company’s first profitable quarter. Since the legalization of sports betting in 2018, DraftKings has heavily invested in promotions to drive growth.
About the PHAI
The PHAI is a nonprofit organization focused on public health through legal measures and policy adjustments. Its previous targets included tobacco companies, and it now views gambling as a similarly harmful product.
The organization is currently embroiled in a legal dispute with DraftKings, having filed a lawsuit against the company for “unfair and deceptive marketing.” In February, a Massachusetts judge denied DraftKings’ motion to dismiss the claims.
In a press release, Andrew Rainer, PHAI Litigation Director, stated: “Following the lead of the tobacco industry, the online sports gambling industry has developed a highly addictive product that bombards consumers with constant betting opportunities, leading to devastated victims like our clients Chris Sage and Terry Thompson.
“Instead of profiting from billions in revenue, the responsible parties—DraftKings, FanDuel, Genius Sports, and unfortunately, the NFL—must be held accountable, which is what we are initiating today.”
DraftKings and FanDuel are currently facing multiple lawsuits nationwide. Last year, the city of Baltimore filed a complaint against the companies, alleging exploitation of vulnerable users.
DraftKings asserts its commitment to responsible gambling. Lori Kalani, the company’s Chief Responsible Gaming Officer, emphasized, “As a leading operator, we aim to provide customers with tools that promote responsible play and enhance their experience.”
FanDuel similarly states its dedication to ensuring that betting remains enjoyable and safe.