FanDuel, DraftKings Face $167B Addiction Crisis

Sports betting apps, such as FanDuel and DraftKings, are facing lawsuits and criticism for their potentially addictive design, as the financial toll of online sports gambling grows. The amount wagered on sports gambling reached $167 billion last year, with a significant surge since it was legalized beyond Nevada in 2018.

FanDuel, one of the largest online platforms, has about 18 million customers and has invested $158 million in responsible gaming. The company has also removed 5,700 people from the platform due to their gambling behavior last year. However, this has not stopped criticism, with Florida attorney Jennifer Hoekstra filing a series of 15 lawsuits against FanDuel and DraftKings.

The lawsuits follow a similar legal theory: that gambling apps were designed to addict. Hoekstra represents individuals who have lost significant amounts due to their gambling habits, including their houses, spouses, and kids. The cases highlight the growing concern about the financial toll of online sports gambling, with bankruptcies and credit card delinquencies increasing by about 25% in states that have legalized online sports gambling.

According to a survey by the National Council on Problem Gambling, 8% of American adults, almost 20 million people, reported experiencing at least one indicator of problematic gambling behavior 'many times' in the past year. This has led to mounting concerns about the impact of online sports gambling on individuals and communities.

## Why it matters The financial toll of online sports gambling is a growing concern, with the surge in legalized betting leading to increased bankruptcies and credit card delinquencies. The design of sports betting apps, such as FanDuel and DraftKings, has been criticized for being potentially addictive, highlighting the need for greater regulation and responsible gaming practices. As the industry continues to grow, it is essential to address these concerns and ensure that individuals are protected from the risks associated with online sports gambling.

## What happens next The lawsuits against FanDuel and DraftKings will likely be closely watched, with the outcome having significant implications for the online sports gambling industry. As the debate around responsible gaming practices continues, it is likely that there will be increased scrutiny of the design and operations of sports betting apps. This may lead to changes in the way these apps are regulated and the measures that are put in place to protect individuals from problematic gambling behavior.