Baltimore vs. FanDuel and DraftKings: Lawsuit that Alleges Exploitative Practices Against People with Gambling Disorders

The city council and mayor of Baltimore are suing bookmaker giants DraftKings and Flutter Entertainment, the parent company of FanDuel, to obtain statutory penalties and injunctive relief. They are demanding the permanent abolition of “shady” practices that target “vulnerable residents” and are calling for platforms’ reformation.

In the complaint filed in a state court on April 3, 2025, the plaintiffs claim that the defendants intentionally offer misleading promotions to attract a larger audience. They then collect data and analytics to identify problematic gamblers and encourage them to spend, which violates Baltimore’s Consumer Protection Ordinance, the city’s mayor alleges.

Welcome promotions mentioned in the lawsuit are universally used by iGaming platforms to attract new customers. Baltimore believes that free bets offered within the bonus part of said promotions fuel gambling disorders, since free bets are usually only active throughout the first 7 days after the first deposit, encouraging people to overindulge.

According to the complaint, the bookmakers also collect and use data to identify those most susceptible to problematic gambling: “Defendants are not interested in people merely dipping their toes in the water. They want bettors to bet, in significant amounts, over and over.” Plaintiffs also claim that VIP programmes on both platforms deliberately encourage continuous play through personal hosts, exclusive offers, and other retention marketing strategies.

The lawsuit continues by noting that both FanDuel and DraftKings “could leverage their troves of user data for good if they wanted to,” indicating that the misuse is intentional. It is alleged that certain accessibility restrictions were placed on bettors under 25, specifically regarding the use of VIP programmes, for Flutter's UK brands, but not for its US ones. The following restrictions “could aid problem gamblers and forestall Baltimoreans from developing and becoming victims of gambling disorders,” says Baltimore’s mayor, Brandon Scott.

As of today, neither company has issued an official response to the lawsuit, except for a FanDuel spokesperson who stated that the company is confident it is operating in compliance with all applicable laws, including those under the State of Maryland’s Lottery and Gaming Control Commission.

DiCello Levitt, the firm that represents Baltimore, claims that the city receives no direct profits from sports betting. Maryland's sportsbooks generated approximately $5.4 billion in sports bets in 2024, following the legalization of sports betting in 2021. In January 2025, Maryland bettors placed wagers of over $457 million on DraftKings and FanDuel alone, according to the complaint.