FanDuel and DraftKings Seek Dismissal of Philadelphia Lawsuit
United States.- 23 July 2026 www.zonadeazar.com FanDuel and DraftKings have asked a Philadelphia court to dismiss a lawsuit filed by two bettors who claim the companies’ mobile applications contributed to the development of gambling-related harm.
The case also names the NFL, Genius Sports and five individuals who worked as VIP hosts for the plaintiffs. All parties have submitted motions seeking dismissal of the claims against them.
News Details
Plaintiffs Christopher Sage and Terry Thompson filed the lawsuit in March 2026 and submitted an amended complaint in June. Their case focuses particularly on microbetting, meaning live wagers placed on individual events occurring during a match.
The complaint alleges that FanDuel and DraftKings used advances in mobile technology, artificial intelligence and product design to direct customers towards high-speed markets with rapidly resolved outcomes.
Thompson allegedly placed approximately US$23 million in bets through the two operators and lost nearly US$1.9 million. Sage’s combined losses through FanDuel and DraftKings were reported at more than US$170,000.
FanDuel argues that its free online application is neither a product nor something sold by the company under Pennsylvania product-liability law. DraftKings submitted a similar argument.
Both operators also contend that the two-year limitation period has expired because the plaintiffs were aware of their alleged injuries and causes well before filing the case in March 2026.
Industry Context
FanDuel and DraftKings have also challenged the state court’s jurisdiction. They argue that Pennsylvania lawmakers gave the Pennsylvania Gaming Control Board exclusive authority to regulate sports betting and other authorised gambling activities.
FanDuel separately requested that the dispute be moved to arbitration, maintaining that both plaintiffs accepted an arbitration provision when opening their accounts and repeatedly approved updated terms and conditions.
The NFL argued that its involvement is limited to indirectly licensing raw sports data and statistics. Genius Sports, the league’s exclusive real-time data provider, said the connection between supplying data and the plaintiffs’ alleged losses is too remote to establish legal causation.
Statements
FanDuel said the plaintiffs remain free to challenge Pennsylvania’s regulatory choices, but should not do so through a private civil damages action.
Andrew Rainer, Litigation Director at the Public Health Advocacy Institute, rejected the defendants’ position and said their filings sought to direct responsibility away from the parties identified in the complaint.
Next Steps or Impact
Lawyers representing Sage and Thompson have until 5 August 2026 to respond to the dismissal motions.
The outcome could influence future litigation concerning problem gambling, sportsbook application design, microbetting and product liability in the regulated US market. It may also determine whether similar disputes belong in civil courts, private arbitration or the administrative framework of state gambling regulators.
Edited by: @_fonta
