A lawsuit filed in Pennsylvania state court accuses the NFL, FanDuel, and DraftKings of contributing to gambling addiction and financial losses through the use of real-time betting products and data.

The complaint, lodged in the Philadelphia County Court of Common Pleas, was brought by two plaintiffs, Christopher Sage and Terry Thompson, who allege the companies enabled and promoted highly addictive forms of betting, including in-game “micro-betting”.

The lawsuit claims the defendants used NFL live data feeds to offer a “known addictive product” and created betting platforms designed to maximise engagement through real-time wagering, analytics, and personalised features.

Attorneys for the plaintiffs argue that the apps became “a relentless, always-on addiction-amplifying machine through a personalized and lightning-fast sports gambling interface unlike anything previously sold to gambling customers.”

Micro-betting, which allows wagers on rapid in-game events, is central to the case. The complaint alleges such bets are “placed on a virtually limitless array of events that occur during the course of a sporting contest where the odds for the wager rapidly change as the game unfolds.”

The format, which can resolve within seconds, is described in the lawsuit as “akin to gambling on slot machines,” with “no off-ramps” or “pauses in the action,” encouraging continuous betting.

According to the filing, live betting accounts for roughly 50% of wagers on the platforms operated by DraftKings and FanDuel.

The plaintiffs claim both men had gambled without issue for years until they began using sportsbook apps. “That all changed once they started using the FanDuel and DraftKings Sportsbook Apps,” the complaint states. “Within just a few years of placing their first microbets on the Sportsbook Apps, Plaintiffs nearly lost everything.”

The lawsuit alleges combined losses of more than $2 million, including approximately $1.83 million lost by Thompson and around $175,000 by Sage after wagering more than $2 million.

The complaint also accuses sportsbook VIP hosts of encouraging continued betting through incentives such as luxury gifts, event tickets, and travel. The attorneys allege that Thompson’s host knew he had demonstrated problematic behaviors because she had suggested he take breaks from betting after losing streaks.

In one instance cited in the filing, a host messaged the plaintiff: “[W]hat do we think about taking a timeout and enjoying the holidays with the family and starting fresh after the new year?”

Despite such messages, the lawsuit alleges hosts continued to engage users, offering further incentives and promotions.

The plaintiffs further argue that the companies “weaponized” technology, enabling “sports gamblers to make bets from anywhere, 24 hours a day, seven days a week,” while also claiming operators “can collect and analyze detailed behavioral data about each of their customers.”

The complaint alleges that the speed and design of micro-betting products can “hijack gamblers’ brains and keep them immersed in ceaseless betting action,” contributing to compulsive behaviour, including “betting nearly 24 hours per day, seven days a week.”

Other companies, including Genius Sports and the NFL, are meanwhile accused of enabling microbetting and encouraging gamblers to become hooked on it. These companies allegedly partake in these actions so they can pad their own profits.

The lawsuit raises claims including negligence, defective design, failure to warn, and unfair trade practices, and seeks damages, legal fees, and changes to the defendants’ practices.

The defendants have not yet publicly responded to the allegations.