Updated February 2026Emerging

Gambling Addiction Lawsuit Lawsuit Tracker

EmergingLast updated: February 23, 2026

The U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in May 2018, opening the door for states to legalize sports betting. Since then, 39 states plus Washington, D.C. have legalized sports wagering. Americans legally wagered more than $157 billion on sports in fiscal year 2025, generating over $3.2 billion in state tax revenue. DraftKings and FanDuel dominate the market, controlling roughly 70% of online sports betting handle. But the explosive growth has come at a devastating human cost. A study published in JAMA Internal Medicine found a 23% national increase in gambling addiction searches after states legalized online sports betting. Maryland reported over 20% of bettors showing signs of disordered gambling. Bankruptcies, destroyed marriages, depression, and suicides linked to sports betting losses are rising sharply. The emerging wave of gambling addiction lawsuits draws on legal strategies proven in tobacco, opioid, and social media addiction litigation. Plaintiffs argue that sportsbook companies designed their apps to be maximally addictive, used data analytics to target vulnerable users, and failed to implement meaningful responsible gambling safeguards. Baltimore filed the first municipal lawsuit in April 2025. Individual and class action suits are filing in Michigan, New York, and other states. The litigation is in its earliest stages with no settlements yet, but legal experts expect the case volume to grow substantially as more plaintiffs come forward and more evidence of deliberate corporate design choices emerges.

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