Two Pennsylvania men are suing DraftKings, FanDuel, the NFL, Genius Sports, and several “VIP hosts” over $2 million in allegedly ill-gotten gambling losses.
The complaint, filed in Philadelphia, alleges that the defendants illegally preyed on the plaintiffs. The product liability lawsuit says that former users Christopher Sage and Terry Thompson struggle with devastating gambling addiction.
U.S. surveys show half of online sports bettors chase losses. About 1 in 5 meet addiction criteria, helping fuel a record $167 billion in U.S. wagers in 2025. A typical problem gambler harms many others, per a 2017 study.
Landmark Lawsuit
The 81-page lawsuit alleges that the sportsbooks provided an addictive, dangerous product. It claims the NFL and its data partner Genius aided and abetted in-game microbets. The complaint references push notifications and artificial intelligence, which sportsbooks may use to power microbets.
A microbet is a live proposition bet placed during a sporting event, usually on the next play or action.
The complaint notably makes VIP hosts defendants for the first time in an online sports betting case. Online sportsbooks typically employ dozens of these hosts to build one-on-one customer relationships.
The lawsuit alleges that VIP hosts illegally targeted the plaintiffs with gambling addiction by offering incentives to encourage further gambling.
Bryttani Morgan and Michael Sonbeek (FanDuel), and Dyleisha Lewis, Peter Donahue, and Shaun Gordon (DraftKings), are named as defendants.
“I am unaware of anyone else naming a VIP host as a defendant in an online gambling lawsuit until today,” Mark Gottlieb, one of the Public Health Advocacy Institute (PHAI) attorneys for the plaintiffs, told GamblingHarm.org. “We have not come across any such case.”
Other similar cases involving the online gambling industry — and there are many — have cited VIP hosts by name, but none have made VIP hosts defendants.
VIP Host Allegations
Plaintiffs accuse the VIP hosts of breaking Pennsylvania’s consumer protection law and claim they were unjustly enriched by encouraging excessive gambling by those with obvious problem gambling.
The lawsuit says the sportsbooks paid each VIP host based on Sage and Thompson’s losses.
The complaint alleges that a DraftKings VIP host continued to offer promotional gifts and offers to one of the men even after he self-excluded from online gambling.
Gamblers can self-exclude in one state and continue gambling elsewhere, as there is no nationwide self-exclusion. Some sportsbooks claim to keep their own lists.
“The lawsuit accuses these VIP hosts of some exceptionally egregious behavior, in particular describing a perk as an ’emergency’ and soliciting a customer who had self-excluded,” Danny Funt, author of the 2026 book Everybody Loses, told GamblingHarm.org.
“I have heard of that from offshore sites, and it’s indefensible,” Funt continued. “But I’m not surprised that hosts at the top online sportsbooks would be tempted to push boundaries.”
Funt has a chapter in his book dedicated to the VIP business, which he says “is all about extracting as much as possible from the biggest losers.” This includes “reaching out to them incessantly, enticing them with unbelievable perks, and convincing them that a host is a friend looking out for their best interests.”
“Yet from my reporting, I heard one host after another describing the intense pressure they feel to coax customers into betting irresponsibly, then look the other way if the customers start demonstrating red flags. It’s perhaps the most ethically fraught division of the online betting business.”
VIPs comprise 2–3% of bettors but generate 60–70% of revenue, according to the book. In 2025, state-sanctioned sportsbooks won nearly $17 billion from users.
A 2024 study found that half of online sports betting revenue comes from people who may have problem gambling. In an extreme example, one betting site reported that just 20 VIP players accounted for over half of revenue.
Not all VIPs, or “whales” as they are sometimes called in the gambling industry, have gambling addictions, but many do.
Analysis
The case centers on in-game microbets, which allegedly led the former bettors to develop addictions after years of betting without major issues.
The lawsuit comes as policymakers in some states examine these wagers. New Jersey and Louisiana have proposed microbet bans, citing their addictive qualities and risks to sports integrity. The federal SAFE Bet Act also seeks to rein in microbets.
It’s indisputable that online sports betting apps are addictive. The case will depend on whether the defendants violated the law. Pennsylvania legalized online sports betting nearly a decade ago. These kinds of lawsuits face an uphill battle because states like Pennsylvania are essentially partners in the online gambling business.
The complaint holds not only the platforms but also the NFL and its data partner liable for the gambling harm. Most strikingly, the suit targets VIP hosts. Could the lawsuit cause concern for the hundreds of VIP hosts in the industry?
These sportsbook employees often rank low in the chain of command. Nonetheless, their actions can directly affect people struggling with addiction.
The lawsuit could take years to unfold in court. It follows ongoing litigation against DraftKings in Massachusetts and a 2025 settlement involving the company and a Pennsylvania psychiatrist. Another lawsuit against DraftKings in Pennsylvania is pending.
Earlier this year, a former police chief in Connecticut was arrested for allegedly stealing city funds to wager on DraftKings and FanDuel, losing more than $200,000. A lawsuit against the sportsbooks related to the chief’s reported gambling addiction has not been filed as of this writing.
