Lawsuit Alleges DraftKings, FanDuel Exploited Vulnerable Gamblers, Violated Consumer Protection Ordinance
BALTIMORE – April 3, 2025 – The Mayor and City Council of Baltimore, represented by the Baltimore City Department of Law and DiCello Levitt, have filed a lawsuit against DraftKings Inc. and Flutter Entertainment plc, doing business as FanDuel Inc., for engaging in deceptive and unfair practices by targeting and exploiting vulnerable gamblers in violation of Baltimore’s Consumer Protection Ordinance (CPO).
The lawsuit alleges that DraftKings and FanDuel use a two-pronged scheme to harm Baltimoreans. First, they use misleading promotions such as so-called “bonus bets” and other tricks to attract new users, designing those promotions to encourage compulsive gambling behavior. Second, they leverage the vast array of data they have about their users, along with sophisticated analytics and personalized inducements, to identify those who suffer from a gambling disorder, and then extract what they can from them. Far from being responsible companies, the lawsuit details how DraftKings and FanDuel routinely identify those who exhibit disordered gambling and work their hardest to keep the users who are suffering in the game.
“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.”
The Complaint explains that DraftKings’ and FanDuel’s targeting of the vulnerable is so widely known that professional gamblers have taken to purposefully mimicking the behavior of those with gambling disorders—such as by programming their devices to “check scores” at odd hours—in order to encourage DraftKings and FanDuel to provide rewards like “bonus bets” meant to induce continued gambling.
“DraftKings and FanDuel put corporate greed ahead of the well-being of Baltimoreans, getting users hooked to their gambling platforms and then leveraging troves of data to identify, target, and exploit the most vulnerable among them,” said City Solicitor Ebony Thompson with the Baltimore City Department of Law. “Their predatory practices have caused significant harm to our community, and we are taking action to hold them accountable and protect our citizens.”
“DiCello Levitt is proud to partner with the City of Baltimore in its efforts to protect its citizens from the harmful and exploitative practices of these online sportsbooks,” said DiCello Levitt Founding Partner Adam Levitt. “Putting profits over people, these companies have engaged in unfair, abusive, and deceptive trade practices. We stand with the City of Baltimore in their efforts to safeguard Baltimoreans by holding DraftKings and FanDuel accountable and ensuring they implement responsible gambling measures to prevent further harm.”
“The predatory practices of sports betting sites are a national problem, and the City of Baltimore is taking a lead role in efforts to curtail them,” Levitt added. “You can bet we will bring the fight.”
Read more about how DraftKings and FanDuel allegedly exploit vulnerable gamblers. A copy of the complaint is available online here.
The legal team in this matter is led by the Baltimore City Department of Law’s Sara Gross, Thomas P.G. Webb, and Ebony Thompson and DiCello Levitt’s Adam Levitt, Dan Ferri, and Dan Schwartz.
About DiCello Levitt
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