Baltimore Sues DraftKings, FanDuel Over Alleged Misleading Promotions

The recent lawsuit filed by the city of Baltimore against prominent sportsbooks DraftKings and Flutter Entertainment, the parent company of FanDuel, has brought to light critical issues surrounding responsible gambling practices in the industry. This action, initiated in the Baltimore City Circuit Court, claims that these operators are employing “deceptive and unfair practices” aimed at targeting and exploiting vulnerable gamblers.

### Legal Context and Allegations Against DraftKings and FanDuel

The complaint, authored by City Solicitor Ebony Thompson on behalf of Mayor Brandon Scott and the Baltimore City Council, argues that DraftKings and FanDuel utilize “misleading promotions” to attract bettors, subsequently relying on sophisticated data analytics to ensure continued gambling among those with compulsive tendencies. Such practices are alleged to contravene the city’s Consumer Protection Ordinance.

Both sportsbooks are accused of executing a “two-pronged scheme” designed to exploit Baltimore residents, particularly those susceptible to gambling disorders. This includes promotions centered around “bonus bets” that significantly contribute to problematic gambling behavior.

Mayor Brandon Scott expressed deep concern over the these practices, stating, “These companies are engaging in shady practices, and the people of our city are literally paying the price.” He emphasized that the lawsuit is a vital step in holding these companies accountable and ensuring the protection of Baltimore’s citizens.

### Representation and Legal Proceedings

The Baltimore City Department of Law, in collaboration with legal firm DiCello Levitt, represents the city in this significant lawsuit. Founding Partner Adam Levitt articulated his support for the city’s campaign, asserting, “Putting profits over people, these companies have engaged in unfair, abusive, and deceptive trade practices.” He further underscored the necessity of responsible gambling measures to mitigate harm and protect the public.

Levitt highlighted the broader implications of this issue, noting, “The predatory practices of sports betting sites are a national problem, and the City of Baltimore is taking a lead role in efforts to curtail them. You can bet we will bring the fight.”

### Understanding Bonus Bets and Their Impact

The lawsuit details a concerning aspect of the promotions: bonus bets are often only valid for seven days. An extended promotion period, even that brief, can be dangerously enticing, particularly for younger and more vulnerable bettors. The complaint outlines that these promotional offers are strategically designed to encourage high-stakes repeated betting.

The legal action specifies that the defendants are less concerned with casual bettors and more focused on enticing individuals to gamble extensively and repeatedly until they face potential harm. Supporting this claim, the lawsuit reveals that one of Flutter’s companies collects “at least 186 attributes for each bettor,” including their betting behaviors and marketing responsiveness.

### The Broader Context of Problem Gambling

The lawsuit cites research from the University of Maryland’s Center of Excellence on Problem Gambling, which indicates a significant disparity in disordered gambling behaviors between online and in-person bettors: approximately 20.8% of online sports bettors display signs of problematic gambling compared to only 11.3% of their brick-and-mortar counterparts.

Highlighting the enormity of the issue, the city pointed out that bettors wagered substantial amounts—$278.5 million at FanDuel and $178.9 million at DraftKings—in January 2025 alone. This staggering figure illustrates the scale of influence these platforms wield over the betting behavior in Baltimore and underscores the pressing need for regulatory oversight and responsible gambling measures.

In conclusion, the lawsuit filed by Baltimore represents a pivotal moment in the ongoing conversation about the ethical responsibilities of gambling operators. By taking a stand against deceptive marketing practices, Baltimore aims to safeguard its residents and tackle the broader issue of problem gambling that is increasingly prevalent in the online betting landscape. It is essential for the gambling industry to adopt transparent and responsible practices that prioritize player welfare over profits.