Baltimore Takes on Betting Giants in Landmark Lawsuit

Baltimore is taking legal action against DraftKings and Flutter Entertainment, accusing the betting giants of targeting vulnerable residents with misleading practices.

Key Takeaways:

• Baltimore files lawsuit against DraftKings and FanDuel's parent company
• Complaint alleges misleading promotions and data exploitation
• City seeks penalties and platform reforms from betting companies

Baltimore's mayor and city council have launched a lawsuit against two of the biggest names in sports betting, DraftKings and Flutter Entertainment (FanDuel's parent company). The legal action, filed in Baltimore City Circuit Court on April 3rd, claims these betting operators use deceptive promotions to lure in customers and then leverage user data to keep problem gamblers betting.

The lawsuit alleges that these practices violate Baltimore's Consumer Protection Ordinance. It specifically targets the companies' use of bonus bets as sign-up incentives, often valid for only a week, which the city claims encourages frequent early betting. The complaint also accuses the operators of collecting extensive user data to identify and target those most likely to increase their betting activity.

According to the lawsuit, Flutter-owned companies have amassed at least 186 attributes for each bettor, including their gambling tendencies and marketing susceptibility. The city argues that some users are then funneled into VIP programs, where they receive exclusive offers and are encouraged to bet more frequently.

Baltimore Mayor Brandon Scott stated, 'These companies are engaging in shady practices, and the people of our city are literally paying the price.' The lawsuit seeks statutory penalties and injunctive relief to halt the alleged practices and reform the betting platforms.

FanDuel responded to the allegations, stating they operate in accordance with all laws, including those enforced by Maryland's Lottery and Gaming Control Commission. DraftKings has not yet commented on the lawsuit.

This case marks the first instance of an American public entity suing online sportsbooks since the 2018 Supreme Court decision that allowed states to legalize sports betting. The lawsuit comes as Maryland's sports betting market continues to grow, with DraftKings and FanDuel reportedly taking in over $457 million in wagers in January 2025 alone.

The outcome of this legal battle could have significant implications for the sports betting industry, potentially leading to stricter regulations and changes in how operators acquire and retain customers. As the case unfolds, it will be closely watched by both industry stakeholders and regulators across the United States.