The Gamblerโs Fallacy
The incorrect belief that a series of random events will self-correct โ e.g., thinking a slot machine is โdueโ after losses.
Problem gambling is often called a โhidden addictionโ because, unlike substance abuse, there are no obvious physical signs. The damage is primarily financial, emotional, and relational. Recognizing the warning signs is the first and most critical step toward getting help. If you see yourself or someone you care about in the descriptions below, it may be time to seek support.
Past results are not necessarily indicative of future results and the amount recovered and other litigation outcomes will vary according to the facts in individual cases.
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Taking the step to seek help for a gambling addiction is an act of immense courage. For many, the path is marked by feelings of isolation, shame, and financial despair. It is crucial to understand that what you are experiencing is not a moral failing or a lack of willpower. Gambling disorder is a recognized and treatable medical condition, an addiction that can be deliberately triggered and exploited by the very design of modern online gambling platforms.
The journey to recovery involves many steps, and one of them can be seeking justice. A civil lawsuit is a powerful tool that allows you to hold negligent corporations accountable for the harm they have caused. It is a way to reclaim your financial future and ensure that operators who prioritize profits over player safety are brought to answer for their conduct. At Diamond & Diamond Lawyers, we understand the complex nature of gambling addiction. We believe that when platforms are engineered to be addictive, the operators may be legally responsible for the devastating losses that follow. Our mission is to provide a safe, confidential, and supportive environment where you can explore your legal options without judgment.
The feeling of being trapped in a vicious cycle of โchasing lossesโ while finances, relationships, and self-esteem erode is a common experience for those with a gambling disorder. This is not a battle you have to fight alone. We are here to help you understand your rights and pursue the compensation you need to rebuild your life.
To understand why an online gambling operator may be held legally accountable, it is essential to first understand the nature of gambling addiction itself. Far from being a simple choice, gambling disorder is a complex condition with deep roots in brain science and psychology. It is formally recognized as a mental health condition and was reclassified in the Diagnostic and Statistical Manual of Mental Disorders (DSM-5) as an addictive disorder, placing it in the same category as substance use disorders. This classification acknowledges the profound and often uncontrollable nature of the compulsion.
Gambling stimulates the brain's reward system in a way that is remarkably similar to addictive drugs or alcohol. When a person gambles, the brain releases a powerful neurotransmitter called dopamine, which produces feelings of pleasure and excitement. This chemical high is what gamblers become addicted to. Over time, the brain develops a tolerance, meaning it requires more and more of the stimulus to achieve the same effect. This is why a person with a developing addiction feels the need to gamble with increasing amounts of money or with greater frequency just to get the same thrill. This process is not a matter of choice; it is a physiological adaptation in the brain. Evidence suggests that some individuals with pathological gambling may have naturally lower levels of other chemicals like norepinephrine, and they may gamble to compensate for this deficiency, seeking the stress and arousal that gambling provides.
Alongside the chemical changes in the brain, gambling disorder is characterized by a set of powerful and persistent irrational thought patterns, often referred to as cognitive distortions. These are not just simple mistakes in thinking; they are symptoms of the disorder that fuel the addictive cycle. Common distortions include:
The incorrect belief that a series of random events will self-correct โ e.g., thinking a slot machine is โdueโ after losses.
The intense urge to continue gambling to win back money already lost; a primary driver of catastrophic financial harm.
Believing one can influence chance outcomes via skill, superstition, or strategy, reinforcing excessive risk-taking.
In Canada, gambling is not a free-for-all. The industry is highly regulated, and companies that profit from it have legal responsibilities. When a person suffers catastrophic harm from a gambling addiction, the crucial legal question is whether the operator failed in its duties to protect that player. The basis of a legal claim rests on the argument that the operator was negligent, and this negligence directly caused or contributed to the financial and psychological damages you suffered.
Under Canadaโs Criminal Code, provincial governments are given the authority to โconduct and manageโ gaming and betting activities. In Ontario, this responsibility is overseen by regulatory bodies like the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO). These bodies license and regulate private operators, imposing strict standards they must follow.
A core component of these standards is a legal duty of care. This is an obligation for operators to adhere to a reasonable standard of safety and to take proactive steps to protect players from gambling-related harm. This includes implementing responsible gambling programs, preventing underage access, and ensuring game fairness. This duty is not merely a suggestion; it is a fundamental condition of their license to operate in the province. When an operator fails to meet these standards, it can be considered a breach of its legal duty.
A growing body of legal action, both in Canada and the United States, is centered on the concept that many modern gambling platforms are โaddictive by design.โ This argument asserts that operators breach their duty of care not just by failing to help players, but by actively designing and marketing a product that is unreasonably dangerous and exploitative, particularly for those with or developing a gambling disorder.
Features that may constitute a breach of duty include:
โRisk-freeโ bets, complex bonuses, and free credits that lure users in and trap them in continuous wagering cycles.
Spin-the-wheel and loot-box-like rewards that leverage randomization to exploit vulnerabilities and foster addiction.
Live/Flash betting encourages rapid, impulsive wagering without time to reflect, maximizing emotional decisions.
Targeting vulnerable users with timed pushes, emails, and custom offers that directly encourage chasing losses.
When a platform incorporates these features, a strong legal argument can be made that the operator is not simply providing entertainment but is knowingly profiting from a dangerously addictive product without adequate warnings or safeguards.
Beyond the initial design, operators in Ontario have an ongoing duty to monitor player activity for signs of harm and to intervene when necessary. The AGCO has made this responsibility explicit. In a landmark case, the regulator issued a $150,000 fine to an online sportsbook after a player lost over $500,000 in less than three months.
The AGCO found that the operator committed several serious violations, including:
No meaningful action taken as a player exhibited clear signs of high-risk, harmful play.
Not enforcing a mandatory 24-hour cooling-off period after the player tried to set a deposit limit.
Continuing to entice the player with approximately $35,000 in marketing credits during catastrophic losses.
This case sets a clear precedent: operators cannot simply stand by while a player self-destructs financially. They have an affirmative obligation to act. When they fail to do so, they are breaching their duty of care and can be held liable for the resulting damages.
Gambling addiction can be fueled by the actions and negligence of various entities. We are committed to holding accountable those who may have contributed to your situation, including:
Investigating unfair practices and predatory tactics.
Examining failures in responsible gaming protocols.
Addressing complicity in enabling destructive gambling habits.
Ensuring they uphold their duty to protect vulnerable individuals.
We recognize the immense sensitivity surrounding gambling addiction. The fear of judgment or exposure can be a significant barrier to seeking help. At Diamond & Diamond Lawyers, your privacy and well-being are paramount.
From your very first phone call, your inquiry is completely confidential. As lawyers, we are bound by solicitor-client privilege, one of the strongest legal protections for privacy. We will never share your information without your explicit consent. We are committed to creating a safe space where you can speak openly about your experiences without fear.
Yes. The legal issue is not that you gambled, but whether the operator failed in its legal duty of care. If a platform is designed to be addictive and exploit known human psychology, or if the operator failed to intervene when you showed clear signs of problem gambling, you may have been unable to make rational decisions or provide informed consent. Your actions may have been the direct result of a disorder that the platform was actively and knowingly profiting from.
Compensation in these cases aims to restore you to the financial position you were in before the harm occurred. It can cover a range of damages, including direct financial losses (money gambled away), the loss of savings and investments (such as RRSPs or education funds), and damages for psychological harm, such as emotional distress, anxiety, and depression caused or worsened by the addiction.
Our legal team works with industry and psychological experts to meticulously analyze a platform’s mechanics and marketing strategies. We look for concrete evidence of manipulative reward schedules, predatory promotions, the absence of effective responsible gaming tools, and other features known to foster compulsive behaviour. The legal arguments are often similar to those used in successful or pending class-action lawsuits against other digital platforms that have been accused of using exploitative, gambling-like features.
We work on a contingency fee basis. This means you do not pay any legal fees upfront or out of pocket. We only get paid if we successfully recover compensation for you, either through a settlement or a court award. Our fee is a pre-agreed percentage of the final amount. If we are not successful, you owe us nothing. This ensures that everyone has access to justice, regardless of their current financial situation.
We understand the deep need for privacy in these matters and the stigma that can be associated with gambling addiction. We take every possible legal step to protect our clients’ identities. In many sensitive cases, it is possible to use legal tools like publication bans or filing a claim using a pseudonym (like “Jane/John Doe”) to shield your name from the public record. We can discuss the specific options available in your case during your free, confidential consultation.
This is a complex but common issue in online gambling litigation. However, it does not necessarily prevent a claim. Many offshore operators are specifically licensed to operate in regulated markets like Ontario and, as a condition of that license, must abide by local laws and the standards set by the AGCO. While the legal status of some offshore operators can be ambiguous, if they are targeting, advertising to, and profiting from Canadian citizens, our legal system provides avenues to hold them accountable for the harm they cause within our borders.