Baltimore sues DraftKings and FanDuel over alleged predatory gambling practices

The City of Baltimore has filed a lawsuit in the Baltimore City Circuit Court against leading sportsbook operators DraftKings and FanDuel, accusing both companies of engaging in deceptive and abusive trade practices that target vulnerable residents, including those with gambling addictions.

Mayor Brandon Scott and the City of Baltimore are listed as plaintiffs in the suit, which claims the two operators used misleading promotions and exploitative VIP retention tactics to hook users and keep them wagering. 

“DraftKings and FanDuel have specifically targeted our most vulnerable residents—including those struggling with gambling disorders—and have caused significant harm as a result,” Scott said in a public statement. “This lawsuit is a critical step to hold them accountable and protect all Baltimoreans.”

Main part of the complaint are allegations that both companies advertise generous promotional offers—such as “bet $5, get $200”—without adequately disclosing the conditions attached, including the short windows within which users must continue to place bets to access those bonuses. The complaint argues these structures are intentionally designed to induce compulsive betting behavior.

The lawsuit also targets the operators’ use of behavioral data analytics, alleging they gather hundreds of data points on each bettor to identify signs of addiction and tailor marketing efforts accordingly. 

“DraftKings and FanDuel are not content merely to expand gameplay: they employ sophisticated data analytics to identify and then exploit players showing signs of problem gambling,” the filing reads.

The suit cites research from the University of Maryland’s Center of Excellence on Problem Gambling, which found online sports bettors have a problem gambling rate nearly twice that of retail bettors—20.8% versus 11.3%. 

Additional supporting material includes reports from national media highlighting cases in which VIP bettors who attempted to quit were allegedly lured back by targeted bonuses from hosts.

“Upon information and belief, DraftKings and FanDuel VIP hosts and managers continue to target Baltimore users whom they respectively know or should know have a gambling disorder,” the complaint alleges.

Baltimore is seeking the maximum penalties available under its Consumer Protection Ordinance and is requesting a court mandate for the companies to cease targeting and exploiting vulnerable gamblers. 

City Solicitor Ebony Thompson said the legal action is essential to protect the community. “Their predatory practices have caused significant harm to our community, and we are taking action to hold them accountable,” she said.

The lawsuit comes during one of the busiest periods for U.S. sports betting, coinciding with the NCAA Men’s Basketball Tournament. According to the Maryland Lottery and Gaming Commission, February 2025 saw over $475 million wagered on sports, with $6.3 million generated for the state that month alone. 

In the first eight months of the 2025 fiscal year, sports betting has contributed more than $61 million to state coffers, surpassing the total collected in the previous full fiscal year.

Sports betting has been legal in Maryland since June 2021, with mobile platforms launching in November 2022. State regulations direct revenue from gambling to the Blueprint for Maryland’s Future Fund, which supports public education.