The Public Health Advocacy Institute (PHAI) is backing a new lawsuit filed in Massachusetts against DraftKings and FanDuel that alleges the gaming giants have created an addictive product for their users.
Bay State resident Daniel Arroyo’s filing in Suffolk County Superior Court takes issue with the promotion and design of DraftKings and FanDuel’s online wagering apps.
Arroyo alleges that FanDuel and DraftKings “exploit users’ vulnerabilities through constant accessibility on smartphones, turning a simple tap into an unlimited gateway for compulsive betting.” The suit also takes issue with DraftKings and FanDuel’s VIP programs, their deployment of “risk-free” bets and their delivery of promotional content.
The suit was filed by the same group of attorneys who were involved in a landmark California lawsuit against Meta and YouTube that found the companies liable for designing platforms that attract young people and include features that foster addictive behavior.
Suit claims operators profit from problem gambling
Arroyo claims FanDuel and DraftKings drive revenue from problematic gamblers.
“Defendants’ businesses are dependent on customer losses,” reads the complaint. “The more money a customer loses, the more revenue defendants generate. This is not incidental to the business model; it is the business model.”
Arroyo is suing the two gaming giants after he wagered nearly $150,000 on DraftKings in 2023 before transitioning to FanDuel. He placed more than 8,000 wagers with FanDuel.
DraftKings allegedly provided Arroyo with a VIP manager due to his frequent wagering with the platform. The VIP manager allegedly provided Arroyo with incentives “to continuously reel him back in to his addictive betting behavior.” The alleged incentives included bonus wagers, personalized offers and tickets to sporting events.
Plaintiff wagered 15 times his income in 2025, says lawsuit
Meanwhile, Arroyo alleges that FanDuel knew of his problematic behavior after he wagered $196,639 with the platform, nearly doubling the amount of his pre-tax income in 2023. FanDuel continued to encourage his betting with a VIP manager and promotions, his lawsuit claims.
That wagering activity spiked dramatically in 2024, rising to $1.3m with FanDuel, per the filing. He alleges that FanDuel was aware of his betting and losses but continued to encourage his wagering with the operator. Last year, Arroyo wagered $1.5 million with FanDuel — over 15 times his income that year.
Collectively, his total net losses were roughly $200,000 between DraftKings and FanDuel. Arroyo has since entered problem gambling treatment, but lost his ability to work.
Arroyo is requesting a judgment against DraftKings and FanDuel for compensatory damages for all injuries and losses, including his gambling losses incurred on both FanDuel and DraftKings and the loss of earnings from an alleged inability to work.
SBC Americas reached out to DraftKings and FanDuel for comment on the pending suit.
FanDuel & DraftKings also facing lawsuit in Pennsylvania
Earlier this week, the PHAI also backed a gambling-related lawsuit in Pennsylvania.
The lawsuit was brought by two Pennsylvania residents who are accusing FanDuel and DraftKings of unfair trade practices, design defects and negligence for creating a “known addictive product.” The suit also names the NFL, as FanDuel and DraftKings have rights to use the league’s data through a data partnership with Genius Sports.
As a result of that relationship, Genius Sports is also a defendant in the case.
In the suit, the plaintiffs claim FanDuel and DraftKings’ live betting markets foster “a relentless, always-on addiction-amplifying machine through a personalized and lightning-fast sports gambling interface unlike anything previously sold to gambling customers.”
The use of VIP managers was also raised in the suit, with the plaintiffs claiming that their respective VIP hosts were aware of their problematic gambling behavior but still encouraged them to use their platforms. One of the plaintiffs also claims he received messages from a VIP host despite being on the Pennsylvania self-exclusion list in 2025.
The plaintiffs are seeking damages, a jury trial and injunctive relief.
