tangent
A similar class-action lawsuit against FanDuel and DraftKings in Massachusetts state court alleges the sportsbooks track user behavior and use that data to target them to keep betting “precisely when they’re most susceptible,” ESPN reported earlier this year. That was the second litigation filed in a week targeting the sportsbooks, after an earlier complaint alleged the companies, the NFL and the data company Genius Sports offered a “known addictive product.”
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surprising fact
Judge Joseph Leeson ruled against a class-action lawsuit targeting DraftKings in Pennsylvania federal court in March, ruling that state law does not impose a duty on casinos and sportsbooks to police customers’ betting habits. The lawsuit similarly alleged that DraftKings’ marketing and VIP loyalty programs resulted in gambling addictions among bettors.
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key background
Claims against sportsbooks follow historic rulings against social media companies over addictive design features. Meta and Google, the parent company of YouTube, were found liable in March for harming a woman’s mental health after she claimed she became addicted to the two companies’ apps because of their addictive features. Meta founder Mark Zuckerberg, who testified during the case’s trial, insisted his company was “building this thing to be a good thing that has value in people’s lives.” The case is one of thousands targeting Meta, TikTok, YouTube and Snap amid mounting criticism of social media companies’ detrimental impact on users’ mental health.
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further reading
ForbesDraftKings Enters Prediction Markets With New AppBy Kirk Ogunrinde