5 major US sportsbooks sued in Washington over legality of sports betting
Five of the biggest names in U.S. sports betting — FanDuel, DraftKings, BetMGM, Caesars, and Fanatics — are facing a legal challenge in Washington, D.C. that could disrupt the entire foundation of the capital’s sports wagering industry.
A newly formed entity, DC Gambling Recovery LLC, filed a lawsuit arguing that the Sports Wagering Lottery Amendment Act (SWLAA) — the law that legalised sports betting in the District — is constitutionally invalid. The group seeks to claw back gambling losses from Washington customers and shut down the market entirely.
Initially filed in D.C. Superior Court in February, the case has since been moved to U.S. District Court for the District of Columbia, a venue where plaintiffs typically face a steeper uphill battle.
Legal argument: PASPA still applies in D.C.
At the heart of the suit is a novel argument: that Murphy v. NCAA, the 2018 Supreme Court case that overturned the federal Professional and Amateur Sports Protection Act (PASPA) and opened the door to legalised sports betting across the U.S., should not apply in Washington, D.C.
The plaintiffs argue that the ruling was grounded in the Tenth Amendment, which reserves powers to the states — a status Washington does not hold.
“The District apparently thought that the Supreme Court’s New Jersey decision meant that PASPA no longer applied to it,” the complaint reads. “But that is wrong: the Tenth Amendment does not apply to the District of Columbia, so PASPA’s prohibition remains in full force in the District. The SWLAA is thus without any legal force or effect.”
The argument, while untested, targets a legal grey zone around Washington, D.C.’s authority to authorise gambling in the absence of statehood or explicit congressional approval.
18th-century law revived in modern claim
Adding an unusual twist, the lawsuit also invokes the 1710 Statute of Anne, a British-era law that technically still applies in Washington. This law allows third parties to sue on behalf of gambling losers if no claim is made within three months, and renders gambling debts under £10 (roughly $25) unenforceable.
Using this statute, DC Gambling Recovery LLC seeks restitution of all gambling losses over $25 and treble damages on behalf of players who lost money wagering with the named sportsbooks.
“Between brick-and-mortar books (like Caesars Sportsbook) and their digital equivalents, DC gamblers now wager (and lose) tens of millions of dollars each month on sports gambling,” the complaint alleges. “That number is rising quickly, reflecting an unprecedented public health crisis of gambling-related addiction, especially among some of the DC-area’s youngest and most vulnerable residents.”
Industry fallout
The lawsuit follows a year of upheaval in the D.C. betting landscape. In April 2024, the city opened its market to commercial operators following the breakdown of an exclusive contract with Greek lottery operator Intralot, whose monopoly model was widely criticised as inefficient and uncompetitive.
In January 2025, the D.C. Council fined Intralot $5 million for violations of its contract terms, further souring the public’s perception of how the city initially handled sports betting legalisation.
Now, with five major sportsbooks operating in the district — and millions of dollars in monthly handle — the lawsuit could pose a significant threat to the market’s legality, depending on how courts interpret the unique constitutional and historical arguments presented.
