City of Baltimore Files Lawsuit against FanDuel, DraftKings for ‘Shady Practices’

Baltimore alleges that two prominent sports betting operators are exploiting gamblers by using deceptive and unfair practices.


The mayor and city council filed a lawsuit against DraftKings and Flutter-owned FanDuel on Thursday for violating Baltimore’s Consumer Protection Ordinance.


- Baltimore officials accuse DraftKings and FanDuel of using bonus bets to induce wagers and hook problem gamblers.
- The city is seeking civil penalties that would force the operators to stop what it believes is targeting and exploitation.
- The lawsuit calls for the sportsbooks to use their data collection to help identify customers with gambling issues.


"These companies are engaging in shady practices," Baltimore Mayor Brandon Scott said, according to WMAR2 News in Baltimore. "The people of our city are literally paying the price."


City officials believe, according to the complaint, the online sportsbooks used bonus bets to induce wagers and "hook those new users on gambling."


FanDuel and DraftKings are the two Maryland sports betting market leaders, combining to generate $346.2 million of the $463.2 million online bettors wagered in February.


Seeking penalties


Baltimore is "seeking civil penalties and injunctive relief to remedy defendants’ violations." The city wants a court to force statutory penalties and order the sportsbooks to stop targeting and exploiting "disordered gamblers."


Baltimore officials accused FanDuel’s and DraftKings’ "so-called" VIP programs of using those tactics.


"Defendants will relentlessly ping their users to bet and bet often, with compulsive gambling an inevitable result," the city stated in the court document.