Baltimore Takes Leading Operators to Court for Alleged Exploitative Practices

The City of Baltimore has launched a groundbreaking lawsuit against two of the biggest names in US sports wagering, FanDuel and DraftKings. The operators face accusations of conducting deceptive marketing practices and exploiting individuals with gambling addictions, leading to increased gambling harm and violating local consumer protection laws.

The Two Operators Reportedly Encouraged Compulsive Gambling

A lawsuit filed in the Baltimore City Circuit Court on Thursday alleges employed aggressive and deceptive tactics to entice vulnerable residents, including those struggling with gambling addiction. Baltimore mayor Brandon Scott released a public statement motivating this decision, arguing that increasingly more aggressive and deceptive marketing campaigns by gambling operators were causing significant societal harm.

These companies are engaging in shady practices, and the people of our city are literally paying the price.

Brandon Scott, Baltimore mayor

At the heart of the complaint is the argument that the companies’ so-called “bonus bets,” which are heavily advertised incentives for new customers, are misleading and designed to encourage compulsive gambling. The lawsuit alleges that these credits usually expire within a week,  effectively compelling users to gamble repeatedly in a short time frame.

The legal complaint further contends that after onboarding users, FanDuel and DraftKings use aggressive data profiling to identify high-risk users likely to keep gambling. According to the lawsuit, a Flutter-owned platform collects as many as 186 individual data points on each bettor. It also alleges that some users get included in VIP programs where they receive special offers and personal attention designed to maximize spending.

Baltimore Urged for Enhanced Consumer Protections

According to the suit, such high-profile operators have proven that they can conduct their business more ethically and sustainably. It drew attention to FanDuel parent company Flutter Entertainment’s UK operations, where it implemented financial vulnerability checks, curtailed VIP programs, and restricted gambling for users under 25. The complaint argues that the operator can adopt similar measures in the USA and use its customer data to identify and assist users at risk of gambling harm.

While the number of class-action lawsuits and individual complaints against US operators has steadily increased, Baltimore’s suit could mark the first time a United States public entity brings a large sportsbook to court on such grounds. The city is seeking injunctive relief, financial penalties, and potentially new regulatory measures to rein in the gambling market and promote a fairer and more equitable industry.

This lawsuit is a critical step to hold (FanDuel and DraftKings) accountable and protect all Baltimoreans.

Brandon Scott, Baltimore mayor

While FanDuel has not yet commented on this newest legal action, the company released a statement affirming its compliance with all laws and oversight by Maryland’s Lottery and Gaming Control Commission. DraftKings has yet to provide a public response. This lawsuit coincides with heightened nationwide scrutiny of the sports betting industry as more parties seek to hold operators accountable for the sector’s social burdens, especially on vulnerable populations.