Caesars sued over ‘predatory’ $2,500 casino bonus

The Public Health Advocacy Institute (PHAI), a nonprofit based at Northeastern University School of Law, is taking Caesars Online Casino and its land-based partner, Harrah’s Philadelphia, to court.

The group alleges that Caesars’ flagship welcome offer is not only misleading but dangerously engineered to trap players in excessive gambling.

The case lands at a time when iGaming in the US is soaring, which is undoubtedly encouraging operators to ramp up promotions to attract new players.

It is the fine print which is causing the concerns. To unlock the full $2,500 bonus by playing table games like blackjack, a player would need to wager $375,000, and do it all within seven days. 

That’s roughly 312 hours of nonstop play, or an impossible 44 hours per day.

An attorney with the PHAI, Jacob Wolk, who drafted the complaint, said;

This is a ‘tails I win, heads you lose’ trap.

Public health crisis in the making?

PHAI argues this isn’t just deceptive advertising, it’s a public health risk.

Citing research from the National Council on Problem Gambling, the organization highlights that nearly 50% of people in gambling addiction treatment experience suicidal ideation. 

When promotions require customers to chase near-impossible goals under severe time pressure, the risk is no longer theoretical.

Dr. Harry Levant, Director of Gambling Policy at PHAI said; 

No regulator should allow a system where the only way to cash out is to gamble excessively. It’s immoral and dangerous.

The lawsuit also points to the emotional manipulation involved. Withdrawing funds becomes possible only after intense gambling activity, which is often disguised under the glossy promise of "free money.”

So, where are the regulators?

The Pennsylvania Gaming Control Board (PGCB), the state’s primary gambling regulator, hasn’t been spared from criticism.

PHAI says that promotions like Caesars’ violate the spirit, if not the letter, of Pennsylvania law, which doesn’t allow winnings to be withheld unless extreme gambling thresholds are met.

PHAI Executive Director Mark Gottlieb said about the PGCB;

If the PGCB is unable or unwilling to step in, we must rely on the courts to protect players.

The PGCB issued a brief response saying it is “reviewing the lawsuit” and declined to comment further.

A dangerous forming pattern

This isn’t PHAI’s first battle with the gambling industry.

In 2023, it filed a class-action lawsuit against DraftKings over its own high-stakes welcome bonus, alleging similar deception. That case is still ongoing after a judge denied DraftKings’ motion to dismiss.

PHAI also sued the Massachusetts Gaming Commission in 2024 for failing to collect behavioral data from casino operators, data that could be key in identifying harmful patterns in player activity.

All of these point to the troubling notion that as online casinos grow rapidly across the US, oversight isn’t keeping up.

This fear was empasisized by PHAI President Dr. Richard Daynard;

The gambling industry is expanding fast and acting faster. If public institutions can’t keep up, the burden falls on advocacy and litigation.

Who is responsible when things go wrong?

With online casino gambling now legal in seven states, and more likely to follow, watchdogs like PHAI are demanding better transparency, stronger rules, and independent oversight.

The lawsuit against Caesars could become a turning point. It raises critical questions about what kind of gambling practices are acceptable in the digital age,  and who is responsible when things go wrong.

The question left to ponder, which arises from this, is: Should a casino ever make it nearly impossible to win, while pretending that you can?