Class Action Lawsuit Alleges Fanatics Sportsbook Ignores 24-Hour Waiting Period for Limit Increase Requests

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A proposed class action lawsuit alleges that Fanatics Sportbook, an online sports betting and gambling platform, unlawfully allows consumers to increase their deposit and/or gambling limits without the requisite 24-hour waiting period mandated by law in several states.

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The 25-page class action lawsuit claims that Fanatics demonstrates a “systemic failure” to follow gaming protection procedures implemented by laws in Michigan, Colorado, Indiana, Iowa, Louisiana and New York by “deliberately” failing to implement the requisite 24-hour waiting period before a player’s self-imposed deposit or spending increases can take effect.

The lawsuit explains that the 24-hour notice law was designed to “provide a safety net to gamblers and provide that all-important delay” in betting, a crucial tool in the fight against compulsive gambling. Without the 24-hour delay, gamblers might lose more than they can afford to lose, the suit stresses.

According to the case, Michigan’s Lawful Internet Gaming Act, and substantially identical laws in other states, outlines that, “[o]nce established by an authorized participant and implemented by the internet gaming platform, it must only be possible to reduce the severity of self-imposed limitations upon 24 hours’ notice.”

“This is a straightforward case about Defendant violating state laws (and subsequent federal law) by accepting deposits and allowing wagers on its platform when the law very clearly prohibits such activity,” the complaint summarizes.

The filing notes that Fanatic’s primary competitors, i.e., FanDuel, BetMGM, and tribal casinos, all follow the “plain language” of the online gaming statute and do not allow same-day increases on deposit and spending limits. The suit further conveys that the statute was codified because legislators were aware that online gambling posed “significant risk” to consumers and wanted to create “robust” protections that would allow bettors to make proactive decisions about their gambling.

“Financial losses due to gambling can lead to stress, anxiety, health disorders, family conflict, and even so far as the loss of a job or home,” the lawsuit posits.

By refusing to comply with state law, the case argues, Fanatics has rendered the gambling-protection statute “functionally meaningless.”

The plaintiff joined Fanatics Sportsbook in 2021 and established deposit limits immediately, the filing says. However, the plaintiff says he was able to continually increase his deposit limits between January 2022 and January 2023, and ultimately spent over $25,000, the complaint relays. Subsequently, the plaintiff “[fell] into a destructive gambling spiral which caused him significant harm,” the lawsuit states.

The Fanatics SportsBook class action lawsuit seeks to cover anyone who created an account with PointsBet (now Fanatics Sportsbook), whether via its website, mobile app, or third-party platform, who signed up for PointsBet (now Fanatics Sportsbook) accounts and were able to increase their self-imposed deposit and gambling limits without the required 24-hour waiting period before the limit increase took effect.

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