In an apparent legal first, the City of Baltimore is suing DraftKings and FanDuel over deceptive practices it says target and exploit at-risk residents.
While it’s not uncommon to see online operators fined by regulators, sued by customers, or, if unregulated, prosecuted by the state, this may be the first time we’ve seen a city take a swing using municipal laws.
The municipality’s groundbreaking action, filed on April 3 in the Circuit Court for Baltimore City on behalf of Mayor Brandon Scott and the Baltimore City Council, alleges the Defendants violated the city’s Consumer Protection Ordinance.
According to the filing, rather than enjoy their dominant status in Maryland’s sports betting ecosystem, FanDuel and DraftKings actively encourage compulsive gambling behavior.
While the Maryland online sports betting market is still developing, two sportsbooks, FanDuel and DraftKings, have consistently led the pack. In January 2025 alone, Maryland bettors placed more than $457 million in combined bets on the two platforms, with $278.5 million wagered on FanDuel and $178.9 million wagered on DraftKings. Their closest competitor, BetMGM, took in just $51 million in bets that month.
But rather than accept a robust and profitable market, DraftKings and FanDuel have sought to guarantee their profitability by cheating, hoping to hook, and then ultimately exploit, as many users as possible.
Specifically, the brief argues that companies employ misleading promotions to attract players and then use data to keep vulnerable gamblers hooked. With the lawsuit, the city seeks “civil penalties and injunctive relief” for the violations.
City argues the top sportsbooks target vulnerable players
According to the city’s arguments, the defendants first lure Baltimoreans through the door with the promise of “bonus bets,” or similarly titled promotions.
The brief alleges that the goal is twofold. First, the aim is to get as many people to join their platforms as possible. Second, using inducements and their platforms’ product design hooks those new users.
The plaintiffs argue that while misleadingly implying that gambling is not risky, these “bonus bets” help ensure new users bet heavily during those first days.
Defendants are not interested in people merely dipping their toes in the water: they want bettors to bet in significant amounts over and over.
Furthermore, the lawsuit alleges that the operators can use their customer data to identify and protect vulnerable players, as they do in the UK.
In Britain, where online gambling is more established than the United States, Flutter and other bookmakers have in recent years acknowledged some of their previous practices risked causing harm and ended those practices.
Instead, the plaintiffs argue DraftKings and FanDuel use that knowledge to enact harm.
What Defendants are doing in Baltimore City, however, is the opposite—they use creative, algorithmically-crafted, inducements to keep people in the game, even when it is clear the game is causing those users serious harm.
In a statement shared with the media, Mayor Scott said the lawsuit is a “critical step” in holding the companies accountable and protecting residents.
These companies are engaging in shady practices, and the people of our city are literally 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.
Legal operators bound to uphold state regulations
Baltimore law, the plaintiffs argue, is clear:
Pursuant to Baltimore City Code Art. 2, § 4, it is illegal for companies like Defendants to use unfair, abusive, or deceptive trade practices. FanDuel and DraftKings hook users and then use troves of user data to identify, target, and exploit the most vulnerable among them, specifically seeking those who appear to have gambling disorders. Defendants’ actions are unfair, deceptive, abusive, willful, against public policy, and prohibited by law.
The suit also argues the defendant’s actions “clearly contravene” Maryland public policy aiming to protect vulnerable gamblers from exploitation.
Maryland Sports Wagering Regulations, issued by the Maryland State Lottery and Gambling Control Agency, mandate that, “[a] sports wagering licensee, directly or through a contractor or vendor on behalf of the licensee, may not: . . . conduct sports wagering in a manner that may adversely impact the public or the integrity of sports Wagering.
However, both operators are legally licensed to operate in Maryland and seemingly follow all publicly available regulations.
Bonus contacted DraftKings and FanDuel for comment. While DraftKings did not offer an immediate response, a FanDuel spokesperson shared the following statement:
FanDuel does not comment on specific allegations in pending litigation. We are confident the company operates in accordance with all laws, including those established and enforced by the State of Maryland’s Lottery and Gaming Control Commission.
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