Class action lawsuits in the gambling industry are everywhere, but a closer look reveals a startling truth: They have become a new, industrialized legal business model where the lawyers get paid, but most players see little to nothing.
From DraftKings to sweepstakes casinos, law firms are filing often, promising justice and accountability for operators. The headlines certainly make it sound like players are winning big. We hear of a $155 million settlement against Big Fish Games, a $12 million payment from FanDuel and DraftKings, and a $3.5 million settlement from SpinX Games. Even Coinbase paid $2.25 million over a crypto sweepstakes controversy.
But these numbers tell only half the story. The journey from a lawsuit filing to a meaningful payout is a brutal one for class members, but often a highly profitable one for the legal firms behind the litigation.
