City Of Baltimore Files Lawsuit Against DraftKings, FanDuel, Claiming Unfair Practices
Suit claims companies are actively encouraging people to become problem gamblers
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The mayor and city council of Baltimore have filed a lawsuit against DraftKings and Flutter, parent company of FanDuel, for engaging in deceptive and unfair practices and exploiting gamblers, allegedly in violation of the city’s Consumer Protection Ordinance.
Filed Thursday morning, the suit alleges the companies abused Baltimoreans by using “misleading promotions” and bonus bets to entice first-time users. The suit claims the companies did this to encourage compulsive gambling behavior.
Secondly, and according to a press release from the city’s law firm in this matter, DiCello Levitt, the companies “leverage the vast array of data they have about their users, along with sophisticated analytics and personalized inducements, to identify those who suffer from a gambling disorder, and then extract what they can from them.” The suit claims the companies seek to keep problem gamblers on their respective sites.
“These companies are engaging in shady practices, and the people of our city are literally paying the price,” said Baltimore Mayor Brandon Scott. “DraftKings and FanDuel 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.”
The lawsuit alleges the companies track up to 186 different user attributes to analyze betting patterns. According to the complaint, DraftKings and FanDuel use this information to create targeted notifications and promotions specifically designed to exploit problem gamblers.
The city’s lawsuit also points to data alleging that 20.8% of Maryland online sports bettors exhibit signs of disordered gambling — nearly double the rate seen in brick-and-mortar sports betting. Staff at the University of Maryland’s Center of Excellence on Problem Gambling have reported increased calls from college-age males and their parents since mobile sports betting launched in the state, according to the suit.
VIPs and RG
The complaint also notes that Flutter and other operators implement stricter responsible gambling measures in the United Kingdom, including financial vulnerability checks, restrictions on VIP programs, and enhanced protections for gamblers under 25 years old.
Additionally, the complaint discusses VIP programs and how job listings — as of last year — said one of the goals of working for the department would be to “increase player activity and drive revenue.”
“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,” said City Solicitor Ebony Thompson with the Baltimore City Department of Law. “Their predatory practices have caused significant harm to our community, and we are taking action to hold them accountable and protect our citizens.”
Calls to DraftKings were unreturned as of press time, and a FanDuel representative stated the company does not comment on pending lawsuits.
