FanDuel and DraftKings are facing legal action in Pennsylvania alongside the NFL and its data partner Genius Sports, with two punters claiming they were encouraged to gamble excessively through VIP rewards and access to rapid-fire betting markets.

Christopher Sage and Terry Thompson have filed suit alleging the operators used NFL data to promote what they describe as addictive products, particularly in-play micro-betting. The pair say they collectively lost over £2 million between them in just a few years of using the platforms.

VIP Perks Under Scrutiny

The complaint takes specific aim at how high-spending customers were treated. Thompson, who reportedly lost around £1.83 million since joining both platforms in late 2022, received Super Bowl tickets, hotel stays, and a £500 bottle of champagne among other incentives. Sage received similar treatment before eventually being diagnosed with a gambling disorder and placing himself on Pennsylvania’s exclusion register.

VIP programmes at licensed US sportsbooks typically reward frequent players with access to better odds, exclusive events, and personal account managers. The lawsuit suggests these benefits crossed a line. Actively encouraging the plaintiffs to continue placing bets despite mounting losses.

Micro-Betting in the Crosshairs

The legal action specifically calls out micro-betting markets, those quick-turnaround wagers on moments within live games, as particularly problematic. The plaintiffs’ attorneys claim their clients had no issues with traditional sports betting until they started using these rapid-fire markets on mobile apps.

Worth knowing: micro-betting has faced questions before, but no US court has successfully established that licensed operators acted improperly in offering these products. The legal framework currently treats them the same as any other regulated betting market.

Data Partnership Brought Into Question

Genius Sports finds itself named alongside the operators and the NFL itself. The company provides official league data that powers many of these in-play markets, and the lawsuit appears to question whether all parties in the data supply chain share responsibility for how those markets are used.

The plaintiffs are pushing for a jury trial and seeking compensation for damages and legal costs. They also hope their case might establish precedent for future actions against similar business practices.

Licensed US sportsbooks operate under strict regulatory oversight, particularly around customer interactions and VIP programmes. Whether this case can prove actual wrongdoing, rather than simply documenting losses by willing participants in a legal market, we’ll see. The industry will be watching closely.