Online Sports Betting & Underage Online Gambling Lawsuits

Were You or Your Child Harmed by an Online Sports Betting or Gambling App?

Online sports betting and internet gambling have grown rapidly across the United States, making it easier than ever to place bets from a smartphone or computer. While these platforms are marketed as entertainment, growing research has raised concerns that certain app features may encourage compulsive gambling behavior, particularly among teenagers and young adults whose brains are still developing.

Levin Papantonio is investigating potential claims involving online sports betting and gambling platforms for individuals who developed a gambling addiction or experienced significant financial, emotional, or psychological harm after using these products.

If you or a loved one may have been affected, contact Levin Papantonio today for a free, confidential case evaluation to learn whether you have legal options. Complete our free case evaluation form or call (800) 277-1193 to speak with a member of our team.

What Is Online Sports Betting?

Online sports betting allows users to wager on professional, collegiate, and other sporting events through mobile apps and websites. Many platforms also offer online casino games (iGaming), fantasy sports contests, live betting, and other forms of online gambling.

Until 2018, sports betting was largely prohibited in the United States under the Professional and Amateur Sports Protection Act (PASPA). That changed when the U.S. Supreme Court ruled PASPA unconstitutional, allowing states to legalize and regulate sports betting. Since then, the industry has experienced rapid growth.

Today, FanDuel and DraftKings are among the largest online sports betting companies in the United States, together representing a significant share of the regulated online sportsbook, iGaming, and fantasy sports markets.

The growth of online gambling has been substantial. In 2025:

  • U.S. sports betting generated $16.96 billion in revenue, a 22.8% increase over 2024.
  • U.S. iGaming generated $10.74 billion in revenue, a 27.6% increase over 2024.

Online sports betting is now legal in more than 30 states, with the minimum legal age set at 21 in most. Exceptions include Washington, D.C., Kentucky, New Hampshire, and Wyoming, where individuals may legally place sports bets at age 18.

Online casino gambling, also known as iGaming, is currently legal in seven states: Delaware, West Virginia, Michigan, New Jersey, Pennsylvania, Rhode Island, and Connecticut. The minimum legal age for iGaming is 21 in each of these states.

Fantasy sports contests are also widely available across the United States. The legal age in most states is 18, with the exceptions of Alabama and Nebraska at 19, and Arizona, Iowa, Louisiana, and Massachusetts at 21. Only five states, including Hawaii, Idaho, Montana, Nevada, and Washington, do not permit fantasy sports betting apps.

Research suggests that participation in online sports betting is particularly common among younger adults. Surveys have found that approximately 34% of Gen Z and 42% of Millennials have participated in sports betting, making young adults one of the industry’s fastest-growing user groups. Some sportsbooks have also entered into marketing partnerships with colleges and universities, allowing advertising on or near college campuses. These trends have raised concerns among researchers, parents, and public health advocates about the potential impact of online gambling on younger users.

Why Are Youth Especially at Risk?

Research has shown that adolescents and young adults may be more vulnerable to addictive behaviors because the prefrontal cortex, the part of the brain responsible for impulse control, decision-making, and risk assessment, continues developing into the mid-twenties.

Studies have also found that gambling activates many of the same brain reward pathways associated with substance addiction.

This may make younger users more susceptible to developing compulsive gambling behaviors after repeated exposure to online betting platforms.

How Online Gambling Apps May Encourage Addiction

Many online sports betting platforms include features designed to maximize user engagement. Critics argue that some of these features may also increase the risk of compulsive gambling.

Examples include:

  • 24/7 mobile access
  • Personalized recommendations and algorithms
  • Push notifications encouraging additional bets
  • Instant deposits and withdrawals
  • Live betting during games
  • Prop bets and microbets
  • Parlay wagers
  • Loyalty rewards and bonus promotions
  • VIP programs offering personalized incentives
  • Gamified features such as streaks, badges, and levels
  • Minimal delays between wagers
  • Promotional offers encouraging continued betting after losses

Some users also report difficulties with account closures or self-exclusion requests.

Understanding Gambling Disorder

In 2013, the American Psychiatric Association recognized Gambling Disorder as the first and only behavioral addiction included in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5). It is classified alongside substance-related addictions.

Symptoms may include:

  • Needing to gamble increasing amounts of money
  • Repeated unsuccessful attempts to stop
  • Restlessness or irritability when trying to cut back
  • Constant thoughts about gambling
  • Gambling to escape stress or emotional problems
  • Chasing previous losses
  • Lying about gambling activity
  • Financial problems caused by gambling
  • Damaged relationships, education, or employment because of gambling

Health Risks Associated with Gambling Addiction

Compulsive gambling has been associated with increased risks of:

  • Anxiety
  • Depression
  • Substance abuse
  • Sleep disorders
  • Financial hardship
  • Relationship difficulties
  • Suicidal thoughts
  • Suicide attempts

If you or a loved one is struggling with problem gambling, know that help is available. Support and treatment resources can make a difference. Visit the Resources for Gambling Addiction section below for organizations that offer confidential assistance and crisis support.

Why Are Online Sports Betting Lawsuits Being Investigated?

Some lawsuits allege that certain online sports betting platforms were designed in ways that encouraged excessive gambling while failing to adequately warn users about the potential risks of addiction.

Depending on the facts of each case, legal claims being investigated may include:

  • Negligence
  • Defective product design
  • Failure to warn
  • Consumer protection violations
  • Intentional misrepresentation
  • Intentional infliction of emotional distress

Who May Qualify for an Online Sports Betting Lawsuit?

You may wish to speak with an attorney if you or a loved one:

  • Were under age 26 when using an online sports betting or gambling app
  • Developed gambling addiction or Gambling Disorder
  • Experienced significant financial losses
  • Required treatment for gambling addiction
  • Suffered depression, anxiety, or other serious mental health complications related to compulsive gambling
  • Attempted or completed self-exclusion but continued receiving gambling promotions or incentives
  • Experienced other significant harm after prolonged use of an online betting platform

Medical records, treatment records, account history, and other documentation may help evaluate a potential claim.

What Compensation May Be Available?

The compensation available in an online sports betting or gambling addiction lawsuit depends on the specific facts of each case. While every claim is different, individuals who qualify may be able to seek compensation for damages such as:

  • Financial losses related to compulsive gambling
  • Medical expenses, including treatment for gambling addiction and related mental health conditions
  • Therapy, counseling, and rehabilitation costs
  • Lost wages or diminished earning capacity
  • Emotional distress and mental anguish
  • Pain and suffering, where permitted by law
  • Other economic and non-economic damages supported by the evidence

An experienced attorney can review your situation and explain what types of compensation may be available based on your individual circumstances.

Levin Papantonio’s Experience with Youth Online Harm

For decades, Levin Papantonio has represented individuals and families in litigation involving products and technologies that allegedly caused widespread public harm. Today, our attorneys are involved in litigation addressing the impact of digital platforms on children, teenagers, and young adults.

Our work includes representing clients in social media addiction litigation, where lawsuits allege that certain social media platforms were intentionally designed with addictive features that contributed to mental health harms among young users. Our attorneys have also been involved in litigation concerning Roblox, where families allege the platform failed to adequately protect children from online exploitation and other foreseeable harms.

These cases raise similar concerns about online sports betting and gambling apps, including allegations that digital products use engagement-driven design features, personalized recommendations, continuous notifications, reward systems, and other behavioral techniques that encourage prolonged use and compulsive behavior.

As online technologies continue to evolve, Levin Papantonio remains committed to investigating claims involving products that may place profits ahead of user safety, particularly when those products affect children, teenagers, and young adults. The firm’s efforts also extend beyond the courtroom through community education initiatives focused on youth online safety, digital wellness, and helping parents better understand online risks.

Speak with Levin Papantonio About Your Potential Claim

If you or a loved one developed a gambling addiction or suffered serious financial, emotional, or mental health harm after using an online sports betting or gambling app, you may have legal options.

Levin Papantonio is investigating claims involving online sports betting and underage online gambling. Our team can review your situation, answer your questions, and help determine whether you may qualify to pursue a claim.

Complete our free case evaluation form or call (800) 277-1193 to speak with a member of our team.

Resources for Gambling Addiction

If you or someone you know needs help, resources are available 24/7.

National Problem Gambling Helpline
Call or text 1-800-MY-RESET
ncpgambling.org/help-treatment/

Gamblers Anonymous
gamblersanonymous.org/

988 Lifeline
Call or text 988 or visit the website to use their online chat feature.
988lifeline.org/

Crisis Text Line
Text Home to 741741 or visit the website to use their online chat feature.
crisistextline.org/

Frequently Asked Questions