The Public Health Advocacy Institute (PHAI) has filed a lawsuit against DraftKings, FanDuel, Genius Sports, and the NFL.
The PHAI alleges that the online sports betting platforms “relentlessly push addictive live in-game microbets.”
Genius Sports is the sole supplier of the NFL’s live data and statistics, which it then provides to DraftKings and FanDuel. This enables the companies to offer a wide range of live betting markets.
Live betting is estimated to make up around 55% of all wagers. In esports, the figure is even higher. Oddin reported that the live bet share of major esports games was over 70%, with Dota 2 the highest at 86%.
VIP Hosts Lured Men Into Microbetting
The plaintiffs in the lawsuit are two Pennsylvania residents, Christopher Sage and Terry Thompson. The two men claim that both FanDuel and DraftKings lured them into making more and more microbets.
The companies assigned Sage and Thompson VIP hosts who allegedly enticed them with promotional offers, trips to sporting events, and other gifts.
The lawsuit names three DraftKings VIP hosts: Dyleisha Lewis, Peter Donahue, and Shaun Gordon, as well as 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 considerably more, at over $1.5 million.
At DraftKings, Thompson lost $336,000, while Sage lost $40,000. Sage eventually excluded himself from online gambling in March 2025. The lawsuit alleges that even after this, Lewis continued to personally contact him with promotional offers and gifts.
DraftKings generated $1.35 billion in revenue from sports betting in the last quarter of 2025. This was an increase of 63% from 2024 and led the company to make a profit for the first time. The company has invested heavily in promotions to fuel growth since the legalization of sports betting in 2018.
Who Are The PHAI?
The PHAI is a nonprofit organization that focuses on public health through legal action and policy change. In the past, it has targeted tobacco companies and says that gambling is a similarly harmful product.
It is already involved in a legal battle with DraftKings, filing a lawsuit against the company over its “unfair and deceptive marketing.” A judge in Massachusetts rejected DraftKings’ motion to dismiss the claims in February.
In a press release, PHAI Litigation Director, Andrew Rainer, said: “Following in the footsteps of the tobacco industry, the online sports gambling industry has developed a highly addictive, difficult-to-resist product that bombards consumers with dozens of betting opportunities every minute of the day and that is leaving a trail of devastated victims, like our clients Chris Sage and Terry Thompson.
“Instead of continuing to stuff their pockets with billions of dollars in annual revenues, the perpetrators of this devastation– DraftKings, FanDuel, Genius Sports and, tragically, the NFL — must be held to account, and that is the process we are beginning today.”
DraftKings and FanDuel are facing multiple lawsuits across the country. The city of Baltimore filed a complaint against the companies last year, arguing that they take advantage of vulnerable users.
DraftKings claims that it supports responsible gambling. Lori Kalani, Chief Responsible Gaming Officer at the company, stated: “As a leading operator, we are committed to providing customers with tools that support responsible play and enhance their experience.”
FanDuel similarly says that it is “committed to keeping betting fun and safe.”