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Baltimore is taking legal action against two of the biggest names in online sports betting. The city filed a lawsuit against DraftKings and FanDuel, accusing both of using unfair and deceptive tactics that target people vulnerable to gambling problems.
Filed in the Baltimore City Circuit Court, the complaint lists Mayor Brandon Scott and the City of Baltimore as plaintiffs. The city argues that both companies run marketing campaigns and promotions that mislead users and fuel addictive behavior.
“DraftKings and FanDuel have specifically targeted our most vulnerable residents—including those struggling with gambling disorders—and have caused significant harm as a result,” Mayor Scott said. “This lawsuit is a critical step to hold them accountable and protect all Baltimoreans.”
At the center of the case are promotions that advertise offers like “bet $5, get $200.” According to the lawsuit, these offers come with hidden conditions. For example, users must continue placing bets within short timeframes to qualify for the bonuses, a structure the city claims pushes users into compulsive betting.
The complaint also raises concerns over how the companies use behavioral data. It alleges that DraftKings and FanDuel collect hundreds of data points on bettors, using that information to spot signs of addiction and then send targeted offers to keep those users engaged.
“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 states.
The lawsuit includes evidence from the University of Maryland’s Center of Excellence on Problem Gambling. Their research shows that online sports bettors are nearly twice as likely to suffer from gambling issues compared to those who bet in person—20.8 percent versus 11.3 percent.
It also references media reports that describe how some high-spending bettors who tried to quit were contacted again with special bonus offers from VIP hosts, drawing them back into betting.
The city argues that the companies knowingly allow this kind of behavior to continue, despite signs that some users may already suffer from gambling disorders. “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 lawsuit claims.