Millions of Americans struggle with their addictions every day, doing their best to deny the urges that can destroy their lives. These battles are fueled by some of the most addictive substances and behaviors on the planet, including heroin, tobacco, cocaine … and microbetting products offering in-game online sports betting?
That’s the claim made in a lawsuit filed in the Philadelphia Court of Common Pleas in Pennsylvania on March 24, 2026. Submitted by the Public Health Advocacy Institute (PHAI) on behalf of two Pennsylvania gamblers, the complaint alleges that the live betting offered by online sportsbook apps FanDuel and DraftKings uses an addictive product and pressure from employees to prey on bettors. The suit also names the National Football League (NFL) and Genius Sports for supplying the data that enables microbetting.
Among the 16 counts in the product liability suit are claims of violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, accusations of strict liability and negligence for design defects and failure to warn, and unjust enrichment. The plaintiffs, Christopher Sage and Terry Thompson, requested a jury trial to seek damages and enjoin the defendants from continuing their “wrongful conduct.” However, what may actually be on trial is whether gamblers should be held responsible for their sports betting wagers, which could have tremendous repercussions for the multi-billion-dollar industry.
Betting on Every Pitch in a Baseball Game? What Could Possibly Go Wrong?
The U.S. Supreme Court’s decision in 2018’s Murphy v. National Collegiate Athletic Association (NCAA) expanded sports gambling beyond Nevada and illegal bets made with bookies. The ruling allowed each state to decide whether to allow gamblers to place bets on sporting events. As of March 2026, over 35 states and the District of Columbia allow at least online sports wagering, with jurisdictions like New York and Massachusetts allowing in-person betting as well. It’s proven to be an incredible source of revenue for both the states and the betting platforms, allowing gamblers to bet with ease on everything from the NCAA’s Final Four to Major League Baseball’s (MLB) next MVP.
Microbetting, also known as live betting, debuted on online platforms a few years later. Instead of betting on which team will win a game or whether Shohei Ohtani will hit more than 1.5 home runs in the Angels’ home opener, microbetting allows wagers to be placed on events happening within a game in real time. Through sites like FanDuel and DraftKings, bettors can bet on whether an NBA player makes their next free throw, an NHL team scores on a power play, or if a placekicker in a football game will make the upcoming extra point. Artificial intelligence-powered algorithms generate split-second prop bets for gamblers to wager on.
Live betting makes thousands of different wagers available during each sporting event during the game, as opposed to dozens that are generally only available before the event begins. By 2025, it was accounting for at least half of the wagers made on the two betting platforms. This, the lawsuit alleges, is the intended result of an “inherently dangerous product” that preys on a gambler’s addiction to chasing the win.
'Betting the House' Isn’t Supposed To Be Literal
Citing the World Health Organization (WHO) and the American Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders (DSM-V), the lawsuit notes that gambling addictions are in the same diagnostic category as the use of tobacco, heroin, and cocaine. It alleges that Sage and Thompson had been gambling within their means for decades before being exposed to microbetting on FanDuel and DraftKings around 2020. Using data from NFL games gathered by Genius Sports, the addition of bets available in real time during games triggered an addictive response in the two men.
As the two men increased their number of wagers and the amount of money involved, they were assigned VIP status on the sites. This meant attention from VIP hosts employed by the sites, who tried to engage bettors and offered perks to keep wagering, such as expensive bottles of champagne, tickets to Phillies games, and Super Bowl XVI seats in California.
Although one did suggest that Thompson take breaks from betting after brutal losing streaks, the suit alleges that the VIP hosts would return to encouraging betting and offering more perks over time. The sites also bombarded them with alerts for ongoing and upcoming games, as well as promoting available microbets. Several hosts are named as defendants in the complaint.
Thompson, who claims to have lost over $1.8 million and was contemplating suicide after his final losing bet in February 2026, checked into a rehabilitation facility and was diagnosed with a gambling addiction. The second and third mortgages he took on his family’s house to feed his addiction are currently in default. Sage blames microbetting for his losses, which total about $170,000. Claiming he was betting “24/7,” Sage put himself on Pennsylvania’s gambling self-exclusion list in 2025 after his family staged an intervention to halt his non-stop wagering.
If the case isn’t settled beforehand, a trial could lead to the demise of microbetting, which is already under scrutiny amidst allegations of pitch-rigging in MLB games. Is microbet gambling an addiction epidemic on par with drugs? A state court decision may provide an answer.
Related Resources
- Arizona Bets That Online Predictions Market Kalshi Is Running an Illegal Gambling Business (FindLaw’s Courtside)
- NBA Players Cross the Line With Sports Betting Using Inside Information (FindLaw’s Legally Weird)
- Massachusetts Lawsuit Predicts Kalshi Is Guilty of Illegally Taking Bets (FindLaw’s Courtside)
