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FanDuel and DraftKings Seek to Throw Out Pennsylvania Gambling Addiction Suit

FanDuel and DraftKings Seek to Throw Out Pennsylvania Gambling Addiction Suit

2026-07-31

FanDuel and DraftKings are asking a Philadelphia court to dismiss a lawsuit alleging their VIP incentives and promotions fueled a Pennsylvania bettor's gambling addiction, arguing their practices are lawful and regulated.

A Pennsylvania bettor’s addiction lawsuit against two of the biggest U.S. sportsbook operators is now facing dismissal motions in a Philadelphia court. FanDuel and DraftKings are jointly contesting the case, which accuses them of using VIP perks and marketing incentives to keep a customer wagering despite evident problem-gambling signs.

The complaint, filed earlier this year by the Public Health Advocacy Institute on behalf of Terry Thompson, claims his gambling behavior spiraled after he received tailored promotions, loyalty benefits, and other offers designed to encourage continued play. Among the more striking allegations is a personalized video message from Philadelphia Phillies star Bryce Harper, reportedly arranged through a third-party platform. Harper has since stated he did not know how the video would be used.

Neither company has addressed the Harper allegation directly. Instead, both argue in their separate motions that VIP programs and promotional campaigns are routine, regulator-approved industry practices. They also point to the availability of responsible-gambling measures such as deposit caps and self-exclusion tools.

The operators further contend the lawsuit lacks a legal foundation, noting Thompson’s betting was lawful and that courts have previously rejected similar attempts to hold sportsbooks liable for compulsive gambling. FanDuel has additionally moved to compel arbitration, asserting that Thompson agreed to mandatory arbitration under the operator’s terms and conditions.

The judge has not yet ruled on either motion. The decision could set an important precedent regarding how much responsibility sportsbook operators carry toward customers who show signs of gambling addiction.

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