Online Sports Betting Prompts Calls for Greater Regulation

Online Sports Betting Fuels Addiction Concerns – The rapid expansion of online sports betting in the U.S. has led to increased concerns about problem gambling, with industry practices and specific high-profile cases drawing scrutiny. State lawmakers, sports leagues, and betting operators are reportedly benefiting from a system critics argue prioritizes revenue over consumer protection.

What Happened

Terry Thompson, a Montgomery County resident, reportedly developed a severe gambling addiction after creating accounts with FanDuel Sportsbook and DraftKings shortly after sports betting was legalized in Pennsylvania in 2020. Within five years, Thompson reportedly wagered over $22 million between the two platforms, incurring losses exceeding $1.8 million, according to The Philadelphia Inquirer.

His addiction reportedly led him to sell his company and take out additional mortgages on his home. Thompson states he reached a critical point in February, leading to a lawsuit filed in the Common Pleas Court of Philadelphia against FanDuel and DraftKings, as detailed by an Inquirer investigative reporter.

In November 2024, Thompson reportedly received a personalized video message from Phillies superstar Bryce Harper, referencing Thompson by name, mentioning his young son, and thanking him on behalf of a FanDuel VIP manager. Harper later stated he was unaware of FanDuel’s involvement, attributing the video to his use of the messaging site Cameo, which allows fans to pay for personalized video messages. FanDuel reportedly rewarded Thompson with perks such as champagne, hotel stays, and Super Bowl tickets, and his VIP manager reportedly engaged in personal exchanges with him.

Key Details

• Terry Thompson reportedly wagered over $22 million and lost more than $1.8 million with FanDuel and DraftKings over five years, according to The Philadelphia Inquirer.
• Thompson’s case, as detailed in a lawsuit, involved a personalized video from Bryce Harper, reportedly facilitated by a FanDuel VIP manager, which Harper later attributed to his Cameo activities.
• FanDuel’s VIP managers reportedly do not work on commission and the company offers responsible gaming tools like spending dashboards, real-time check-ins, and self-exclusion options, according to The Philadelphia Inquirer.
• One study cited by The Philadelphia Inquirer found that 5% of sports gamblers generate 86% of the industry’s revenue.
• Americans reportedly bet more than $166 billion on sports in the past year, a significant increase from $4.9 billion before 2018 when the U.S. Supreme Court cleared the way for states to legalize sports betting, according to The Philadelphia Inquirer.
• Roughly 30% of Pennsylvania adults reportedly engaged in some form of online gambling in the past year, as found by Penn State University researchers.

Why It Matters

The rapid growth of online sports betting, with last year’s national wagers exceeding $166 billion, highlights the significant financial scale of the industry since the 2018 Supreme Court decision, The Philadelphia Inquirer reported. This expansion has reportedly transformed mobile phones into accessible gambling platforms, contributing to increased rates of online gambling, including among younger demographics; nearly 40% of men and 20% of women reportedly gamble online daily, according to the American Psychiatric Association cited by the Inquirer. The industry’s model, which reportedly relies on a small percentage of frequent gamblers for a large portion of its revenue (5% generating 86%), raises questions about the efficacy of self-regulation measures offered by platforms like FanDuel amidst allegations of VIP perks designed to retain high rollers.

The case of Terry Thompson exemplifies concerns that current safeguards may be insufficient in preventing or mitigating severe gambling addiction. Harry Levant, director of gambling policy for Public Health Advocacy Institute and an addiction recovery coach, stated that the surge in online sports gambling is fueled by partnerships between professional sports leagues and betting companies that offer continuous in-game betting opportunities. Levant reportedly characterized microbetting—such as wagering on specific in-game events—as “fundamentally different” and “designed to be addictive,” posing significant challenges for individuals to manage, according to The Philadelphia Inquirer. These developments prompt broader discussions regarding regulatory oversight in an industry that has seen a doubling of calls to problem gambling hotlines in areas like the Philadelphia market.

What’s Next

Harry Levant, Director of Gambling Policy for Public Health Advocacy Institute, has called on Congress to pass the Safe Bet Act. This proposed legislation would reportedly mandate operators to conduct “affordability checks,” prohibit microbetting and the use of AI for tracking individual gambling habits, and ban sportsbooks from marketing during live sporting events, according to The Philadelphia Inquirer. The 39 states and Washington, D.C., that have legalized sports betting are reportedly tasked with implementing robust safeguards to protect citizens from a system critics argue prioritizes revenue generation.

Originally reported by The Philadelphia Inquirer·Published 23 Jul 2026, 14:16