Online gambling is an exploding industry. Many states have legalized it, while many others still do not. Texas still has very strict gambling laws, but that doesn’t stop residents from utilizing online gambling elsewhere or online. If an addiction to gambling results in high losses, you may wonder if you can sue to recover any of those losses.
At Edward O. Moody, P.A., our Texas gambling addiction lawyers are here to help. Under the right circumstances, a lawsuit may be possible, even if it’s not exactly for what you think.
Texas Does Not Recognize Gambling Losses as a Standard Injury Claim
Most of the time, you cannot sue a company just because you lost money gambling. Most courts still view these losses as voluntary, even if it was caused by your addiction. For the most part, you can’t file a lawsuit just because:
- You lost money on an online casino
- You developed a gambling addiction
- You regret the financial consequences
That doesn’t mean it’s the end of the story. Misconduct by a gambling company that led to your losses may be compensable in a separate way.
When a Lawsuit May Be Possible Against an Online Gambling Company
Texas prohibits most types of gambling still, but companies may still face monetary liability if they violate certain rules or statutes.
1. Deceptive or Misleading Advertising
If a gambling platform:
- Markets itself as “risk-free”
- Promises guaranteed winnings
- Uses fake testimonials
- Targets vulnerable users
it may violate Texas Deceptive Trade Practices Act (DTPA) standards. Under the DTPA, consumers can sue for economic damages caused by deceptive business practices.
2. Failure to Implement Responsible-Gaming Protections
Many legitimate gambling operators must provide:
- Deposit limits
- Self-exclusion tools
- Cooling-off periods
- Age verification
- Addiction-prevention resources
If a company fails to do that, this could be the basis for a negligence claim, or even a consumer-protection claim.
3. Targeting Minors or Vulnerable Users
Some platforms knowingly go after addicts or other vulnerable users. Others even target minors who are supposed to be too young to gamble anyway.
4. Operating Illegally in Texas
Texas still doesn’t allow online sports betting or casinos. If the company reaches into Texas to advertise or knowingly processes payments from Texas, they could be subject to penalties and civil liability.
5. Data Breaches or Financial Misconduct
Some offshore gambling sites mishandle user funds, refuse withdrawals, or expose financial data. In these cases, claims may involve:
- Fraud
- Conversion
- Breach of contract
- Data-privacy violations
The Biggest Challenge: Jurisdiction
Even if a gambling company acted improperly, the next question is whether a Texas court can exercise jurisdiction over it. Many online gambling platforms are:
- Based offshore
- Not registered to do business in the U.S.
- Using foreign servers
- Shielded by complex corporate structures
This makes lawsuits difficult, but not impossible. Courts may assert jurisdiction if the company:
- Targets Texas residents
- Accepts payments from Texas banks
- Runs Texas-specific ads
- Has substantial U.S. operations
Addiction Alone Is Not Enough, But Addiction Plus Misconduct Might Be
Texas courts do not treat gambling addiction the same way they treat injuries from defective products or unsafe premises. However, addiction-related damages may be recoverable if tied to:
- Deceptive marketing
- Negligent failure to protect users
- Illegal solicitation of Texas residents
- Ignoring self-exclusion requests
- Manipulative or predatory design features
What Damages Could Be Recoverable?
If a lawsuit is viable, potential damages may include:
- Money lost due to deceptive or illegal practices
- Out-of-pocket financial harm
- Costs of addiction treatment
- Emotional distress (in limited cases)
- Punitive damages for extreme misconduct
Each case depends on the facts, the company’s behavior, and whether Texas courts can assert jurisdiction.
Get the Help You Need to Fight Back Against Online Gambling Companies
Our legal team stands ready to assist you. We know how devastating a gambling addiction can be, and it may be the responsibility of the gambling company itself.
Let the dedicated online gambling addiction attorneys at Edward O. Moody, P.A. review your case. Contact us today for a consultation.