Baltimore sues DraftKings, FanDuel for consumer protection violations
In a groundbreaking move, the City of Baltimore has filed a lawsuit against two of the biggest names in sports betting, DraftKings and FanDuel. This case is significant since it marks the first time a US city has taken a direct legal stand against online sportsbooks since the Supreme Court’s 2018 decision to allow states to legalise sports betting.
Exploiting vulnerable gamblers: Lawsuit
The legal action, initiated on 3 April 2025, accuses the companies of exploiting vulnerable gamblers through deceptive tactics designed to fuel addiction and harm. The case, filed in the Baltimore City Circuit Court, centers around the claim that these sportsbooks are actively engaging in deceptive practices that violate the city’s Consumer Protection Ordinance. The city argues that DraftKings and FanDuel are using aggressive marketing strategies to lure in vulnerable individuals, including those who are already struggling with gambling addiction.
According to Mayor Brandon Scott said in a statement, “These companies are engaging in shady practices, and the people of our city are literally paying the price.” He said the operators “have specifically targeted our most vulnerable residents — including those struggling with gambling disorders — and have caused significant harm as a result. This lawsuit is a critical step to hold them accountable and protect all Baltimoreans.”
Bonus bets
The legal complaint details how one of the most aggressive tactics employed by DraftKings and FanDuel is the use of “bonus bets.” These are monetary credits that are offered to new users as an incentive to sign up and start betting. The lawsuit alleges that these practices are designed to hook bettors into frequent and substantial betting from the start. These bonuses come with significant strings attached and are often valid only for a short period. The lawsuit argues that the short expiration dates force users to place bets quickly, sometimes causing them to wager more than they intended in an effort to use the bonus before it expires. This can lead to impulsive betting behaviors and, in some cases, gambling addiction.
Moreover, the lawsuit also alleges that these sportsbooks exploit the personal data of their users to maximise profits rather than to help users who might be at risk of gambling addiction. It is argued that by analysing users’ betting patterns, DraftKings and FanDuel identify individuals who are more likely to continue gambling and encourage further betting. “DraftKings and FanDuel could leverage their troves of user data for good if they wanted to,” the lawsuit states.
The city’s legal representatives argue that despite these practices being well known in the industry, both FanDuel and DraftKings have failed to implement safeguards similar to those established in the United Kingdom (UK), including financial vulnerability checks and stricter regulations for younger bettors.
