City of Baltimore Files Lawsuit Against FanDuel and DraftKings
The City of Baltimore has filed a lawsuit in the Baltimore City Circuit Court accusing the sportsbook operators FanDuel and DraftKings of allegedly engaging in manipulative and harmful business practices within Maryland.
LISTEN TO THIS ARTICLE:Represented by Washington, D.C. firm DiCello Levitt LLP and the Baltimore City Department of Law, Mayor Brandon Scott (D) and the Baltimore City Council allege that both companies have violated the city’s recently expanded Consumer Protection Ordinance. The complaint claims the companies use a “two-pronged scheme” to exploit local residents.
Customers Targeted with Misleading Promotions
According to attorneys Adam Levitt, Dan Ferri, and Dan Schwartz, the companies first use misleading online casino promotions, such as “bonus bets”, designed to draw in users and encourage addictive gambling behavior. Then, using user data, advanced analytics, and personalized incentives, they allegedly target individuals with gambling disorders to maximize profits.
FanDuel operates a physical sportsbook at Live! Casino & Hotel Maryland in Hanover, while DraftKings offers only online betting in the state. Neither company has commented publicly on the legal action.
The lawsuit focuses on FanDuel and DraftKings, which together command nearly 75% of the legal U.S. sports betting market. Despite the presence of multiple sports betting operators in Maryland, city officials have directed their legal efforts solely at these two platforms.
The complaint outlines how both companies allegedly bombard at-risk users with rewards and incentives that encourage ongoing gambling.
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Maximum Statutory Penalties Sought
Baltimore’s Consumer Protection Ordinance, which was enacted in October 2023, expanded the city’s legal authority to pursue businesses accused of engaging in deceptive or abusive practices. Prior to this update, legal action was limited to instances of false advertising.
DraftKings and FanDuel put corporate greed ahead of the well-being of Baltimoreans, getting users hooked to their gambling platforms and then leveraging troves of data to identify, target, and exploit the most vulnerable among them. Their predatory practices have caused significant harm to our community, and we are taking action to hold them accountable and protect our citizens.
In the 51-page filing, the city is requesting a jury trial and seeks the maximum statutory penalties allowed for each violation of the city’s Consumer Protection Ordinance, court-ordered reforms of the companies’ platforms, and injunctive relief to halt the targeting of vulnerable users.
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