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- First case brought by an American public entity against online sportsbooks since Supreme Court decision allowing states to legalise sports betting
- Complaint says practices, including encouraging frequent betting, are in violation of the city’s Consumer Protection Ordinance
- FanDuel “confident” it operates in accordance with laws
Baltimore is suing DraftKings and Flutter Entertainment, with the US city’s mayor accusing the betting giants of engaging in “shady practices” that target “vulnerable residents”.
The complaint, which was filed in Baltimore City Circuit Court, a state court, on 3rd April alleges that DraftKings and Flutter, the parent company of FanDuel, use misleading promotions to attract consumers and then leverage data and analytics to keep problem gamblers betting.
The complaint says these practices are in violation of the city’s Consumer Protection Ordinance.
FanDuel and DraftKings have emerged as the biggest players in the US sports betting market since the Professional and Amateur Sports Protection Act (PASPA), the law which effectively outlawed placing wagers on sports nationwide except for in a few states, was cast aside in 2018.
One of the main ways betting brands attract customers is through betting promotions, a practice the Baltimore lawsuit believes fuels problem gambling.
According to the lawsuit, FanDuel and DraftKings acquire new users by offering bonus bets as a reward for signing up. These are often only valid for seven days, which the complaint states encourages frequent betting in the early stages.
Once users start betting, the companies collect data on them and use the data to identify those most likely to bet more, the lawsuit alleges.
‘Defendants are not interested in people merely dipping their toes in the water: They want bettors to bet, in significant amounts, over and over,’ the complaint reads. ‘Some get hooked, and that’s the point.’
The complaint adds that one company owned by Flutter has collected ‘at least 186 attributes for each bettor, including their propensity to gamble and susceptibility to marketing’. It also alleges that some of these users are set up in the sportsbooks’ VIP programmes, where they are paired with hosts who provide them with exclusive offers and check in with them ‘to keep these players betting as much as possible’.
‘DraftKings and FanDuel could leverage their troves of user data for good if they wanted to,’ the lawsuit continues.
The complaint also notes that Flutter implemented certain protections in the UK, where Flutter-owned brands such as Paddy Power operate, that it has not in the US. These include financial vulnerability checks, the curtailing of VIP programmes and restrictions for bettors under 25 years old.
‘These changes and others could aid problem gamblers and forestall Baltimoreans from developing and becoming victim to gambling disorders,’ the complaint reads.
“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.”
“FanDuel does not comment on specific allegations in pending litigation,” a FanDuel spokesperson said in a statement.
“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.”
Individuals have made similar allegations in lawsuits against sports betting companies in the US. However, Adam Levitt, founding partner at DiCello Levitt, the law firm representing the mayor and city council of Baltimore, told ESPN this is the first case brought by an American public entity against online sportsbooks since the Supreme Court decision allowing states to begin legalising sports betting.
The city of Baltimore receives no direct revenue from sports betting, according to DiCello Levitt. The city is seeking statutory penalties as well as injunctive relief requiring DraftKings and Flutter to stop the alleged practices and reform their platforms. The two companies have about 30 days to respond.
Having legalised sports betting in 2021, Maryland’s sportsbooks took nearly US$5.4 billion in sports bets in 2024. According to the complaint, Maryland bettors wagered more than US$457 million on DraftKings and FanDuel in January 2025. In contrast, the pair’s closest competitor, BetMGM, reportedly took US$51 million.
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