Baltimore Takes Legal Action Against DraftKings and FanDuel

DraftKings and Flutter Entertainment, the parent company of FanDuel, accusing both sportsbooks of engaging in deceptive practices designed to exploit vulnerable bettors.

The lawsuit, filed Thursday in Baltimore City Circuit Court, asserts that the companies violated the city’s Consumer Protection Ordinance by using misleading promotional tactics and leveraging data to encourage continuous betting, especially among those struggling with gambling disorders.

“These companies are engaging in shady practices, and the people of our city are literally paying the price,” Baltimore Mayor Brandon Scott said in a statement. “DraftKings and FanDuel have specifically targeted our most vulnerable residents — including those struggling with gambling disorders — and have caused significant harm as a result. This lawsuit is a critical step to hold them able and protect all Baltimoreans.”

Allegations of Misleading Promotions and Data Exploitation

According to the complaint, DraftKings and FanDuel attract new s by offering “bonus bets,” which are monetary credits usable only within the sportsbook. These incentives typically expire within seven days, pushing s to place frequent bets early on.

“Defendants are not interested in people merely dipping their toes in the water: They want bettors to bet, in significant amounts, over and over,” the lawsuit claims. It alleges that the companies aim to create habitual gamblers, using collected data to identify those most likely to continue betting heavily.

The complaint further reveals that a Flutter-owned company amassed “at least 186 attributes for each bettor, including their propensity to gamble and susceptibility to marketing.” Some s flagged through this data were reportedly invited into VIP programs, where they received personalized attention and exclusive offers to sustain heavy betting activity.

The lawsuit criticizes the companies for not using this data to identify and assist problem gamblers. “DraftKings and FanDuel could leverage their troves of data for good if they wanted to,” the complaint states.

FanDuel and DraftKings Respond

FanDuel declined to address the specifics of the lawsuit. A spokesperson said, “FanDuel does not comment on specific allegations in pending litigation. We are confident the company operates in accordance with all laws, including those established and enforced by the State of Maryland’s Lottery and Gaming Control Commission.”

DraftKings did not issue a statement regarding the case.

The complaint also highlights differences between protections Flutter implemented in the United Kingdom compared to the United States. Measures such as financial vulnerability assessments, VIP program limitations, and restrictions on bettors under 25 years old are in place in the UK but absent from their U.S. operations.

“These changes and others could aid problem gamblers and forestall Baltimoreans from developing and becoming victim to gambling disorders,” the lawsuit claims.

Statistics and Wider Context

Citing research from the University of Maryland’s Center of Excellence on Problem Gambling, the lawsuit notes that 20.8% of online sports bettors exhibit signs of gambling disorders, nearly double the 11.3% rate among in-person bettors.

It also points out that experienced bettors, aware of how the system operates, sometimes mimic behaviors typical of problem gamblers to access bonuses and maintain higher betting limits, further highlighting flaws in the sportsbooks’ practices.

Adam Levitt, founding partner at DiCello Levitt, the law firm representing Baltimore’s mayor and city council, explained that this case marks the first public lawsuit by an American governmental entity against online sportsbooks since the 2018 Supreme Court decision permitting states to legalize sports betting.

Levitt emphasized that public entities like Baltimore are better positioned to bring such lawsuits. Individual bettors, by contrast, usually agree to arbitration clauses when g up for betting platforms, limiting their legal options. “Public entities are not subject to those sorts of arbitration clauses,” Levitt said. “Public entities can bring claims to protect their citizens for this type of wrongdoing.”

Maryland legalized sports wagering in 2021. In fiscal year 2024, the state’s sportsbooks reported nearly $5.4 billion in total wagers, yielding over $60 million in revenue. In January 2025 alone, Maryland bettors placed over $457 million in bets through DraftKings and FanDuel, compared to $51 million at competitor BetMGM, as stated in the complaint.

Funds generated from sports betting in Maryland public education initiatives via contributions to the Blueprint for Maryland’s Future Fund, totaling $143 million since December 2021. However, the city of Baltimore does not receive direct revenue from sports betting activities, according to an email from DiCello Levitt.

Through the lawsuit, Baltimore seeks statutory penalties and a court order compelling the sportsbooks to cease the alleged practices and make changes to their platforms. FanDuel and DraftKings have approximately 30 days to respond to the complaint.

Source:

‘’Baltimore sues FanDuel, DraftKings over promo tactics, lack of safeguards’’, nytimes.com, April 05, 2025.