Share 
State of Play’s TL;DR
- Pennsylvania’s online gambling growth is drawing renewed scrutiny.
- Bettors describe addiction harms, lawsuits target major sportsbook operators, and lawmakers consider limits on app features such as VIP programs, microbets, and push notifications.
Pennsylvania’s rapid online gambling expansion is facing renewed scrutiny as bettors with addiction describe steep losses, lawsuits target major sportsbook operators, and lawmakers weigh tighter controls on betting apps.
The issue is relevant beyond Pennsylvania because the broader policy debate now includes prediction markets.
Pennsylvania’s online gambling boom is colliding with addiction concerns
According to American Gaming Association figures cited in The Philadelphia Inquirer, Pennsylvania generated $3.46 billion in online gambling revenue in 2025, the largest such market in the US. Overall gambling revenue in the state reached $7.7 billion, trailing only Nevada.
At the same time, the Pennsylvania Gaming Control Board reported 30,000 people in self-exclusion programs. Penn State researchers cited by the paper found that 60% to 73% of Pennsylvania adults engaged in some form of betting in 2025, with as much as 30% gambling online. The same research estimated that 2.4% to 6.4% of Pennsylvanians may be problem gamblers, above the reported national range of 1% to 3%.
The Inquirer story profiled bettors who said app-based gambling escalated quickly. One, Reynaldo Rivera, said he wagered about $2.4 million and lost $137,000 after downloading sportsbook apps during the pandemic.
Lawsuits and reform proposals are focused on app design
The report says Rivera and about half a dozen former FanDuel and DraftKings customers have sued the companies in Philadelphia Common Pleas Court. The lawsuits allege the apps use hyper-personalized algorithms and loyalty programs to target addicted users who generate outsized revenue.
Operator responses included FanDuel saying it supports and exceeds Pennsylvania requirements for monitoring customer behavior. The company said it spent $158 million on responsible gambling technology in 2025, conducted 58,000 account reviews, and removed 5,700 users from its platform. DraftKings said it has more than 50 full-time employees and a chief responsible gambling officer focused on responsible engagement.
Pennsylvania lawmakers are drafting legislation that would ban in-game micro-bets, curtail VIP programs, prohibit credit card betting, restrict push notifications, and ban insider trading on prediction markets.
Separately, federal lawmakers introduced the SAFE Bet Act in 2025, which would prohibit sportsbooks from marketing during live games and from using artificial intelligence to inform promotions.
Based on reporting by David Gambacorta and William Bender for the Philadelphia Inquirer.
