FanDuel and DraftKings seek dismissal of gambling addiction lawsuit

FanDuel and DraftKings seek dismissal of gambling addiction lawsuit

The operators have asked a Philadelphia court to dismiss a lawsuit accusing them of exploiting a customer’s gambling addiction through VIP incentives and promotional offers.

U.S.- FanDuel and DraftKings are fighting a lawsuit that alleges they encouraged a Pennsylvania bettor to continue gambling despite clear signs of addiction. The companies have asked the court to dismiss the case.

The lawsuit was brought earlier this year by the Public Health Advocacy Institute on behalf of Terry Thompson, who claims his gambling escalated after receiving personalised incentives, VIP benefits and other promotional offers designed to keep him playing.

One of the allegations centres on a personalised video message from Philadelphia Phillies star Bryce Harper, which was arranged through a third-party platform. Harper later said he was unaware of the video’s intended use.

Neither FanDuel nor DraftKings has directly responded to the specific allegations involving Harper. However, both companies argue that VIP programmes and promotional offers are standard industry practices that comply with regulations. They also note that responsible gambling tools, including deposit limits and self-exclusion options, are available to customers.

Operators challenge the legal basis of the lawsuit

In separate motions, the operators argued they had no legal obligation to intervene because Thompson’s gambling activity was lawful. They also said courts have previously rejected similar arguments seeking to hold sportsbooks liable for compulsive gambling. FanDuel has additionally 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 yet to rule on either motion. The outcome could help define the extent of operators’ responsibility towards customers displaying signs of problem gambling.

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