Baltimore Sues Top Sportsbooks for Violating Consumer Protection

by Blake Roberts, April 09, 2025

The City of Baltimore filed a lawsuit against DraftKings and FanDuel, accusing them of engaging in misleading practices to target vulnerable gamblers.

Misleading Promotions Target Vulnerable Gamblers

The complaint, filed in the Baltimore City Circuit Court on April 3, alleges that DraftKings and FanDuel have used misleading promotions to attract new players. According to the lawsuit, they have leveraged data to keep problem gamblers betting, which violates the city’s Consumer Protection Ordinance.

Baltimore Mayor Brandon Scott criticized the sportsbook’s operations. He said that the two companies were engaging in shady practices, and the residents of Baltimore were paying the price.

“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.”

Brandon Scott, Mayor of Baltimore

The lawsuit describes how DraftKings and FanDuel have lured new customers with “bonus bets” – monetary credits valid only at their platforms, often expiring within a week upon registration.

The city claims that this practice hooks players into frequent betting or gambling large sums from the beginning. The legal complaint also notes that these practices violate responsible gambling practices and could trigger players struggling with addiction.

The City of Baltimore also accuses the two betting platforms of using advanced data analytics to target players likely to gamble more frequently. Such individuals are often invited to enroll in VIP programs, regularly providing exclusive offers and perks like personal managers, which encourage users to continue gambling.

Baltimore City’s Lawsuit Aims to Reform Sports Betting Practices

Despite the chance to use such insights to help problem gamblers, DraftKings and FanDuel have instead chosen to profit from it, the lawsuit states. Baltimore’s legal representatives claim that while responsible gambling practices are mandatory within the industry, the sportsbooks have failed to apply them. Financial vulnerability checks and stricter rules for younger players have been ignored.

Since the Supreme Court’s decision to allow states to legalize sports betting in 2018, Baltimore is the first US city to take legal action against online sportsbooks. The law firm representing the city, DiCello Levitt, highlighted that, unlike individual players, cities are not restricted by arbitration clauses that usually bar class-action lawsuits.

“Public entities can bring claims to protect their citizens for this type of wrongdoing.”

Adam Levitt, founding partner at DiCello Levitt

The lawsuit demands both civil penalties for each deceptive as well as injunctive relief to stop the alleged exploitative practices. The city is also considering reforms that would prevent sportsbooks from applying such misleading practices in the future.