DraftKings and FanDuel sued by Baltimore officials for exploiting bettors
The City of Baltimore, in Maryland, has sued DraftKings and Flutter Entertainment, which owns FanDuel, for breaking Baltimore laws by exploiting vulnerable bettors.
The lawsuit, filed by the Baltimore City Department of Law and law firm DiCello Levitt, alleges that DraftKings and FanDuel used a ‘two-prong’ scheme that would mislead bettors to sign up under the guise of ‘bonus bets’ and would then harness data to send gambling promotions to gamblers suffering from addiction intentionally.
Baltimore Mayor Brandon Scott said, “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.”
Dicello Levitt claim that the exploitation of gamblers is so well-known inside the industry that even professional gamblers have started to mimic the behavior of bettors suffering from addiction to try and encourage DraftKings and FanDuel to provide them with targeted promotions, such as ‘bonus bets’.
“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 Baltimore City Department of Law Solicitor Ebony Thompson. “Their predatory practices have caused significant harm to our community, and we are taking action to hold them accountable and protect our citizens.”
A FanDuel spokesperson said: “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.”
COMPLETE iGAMING has also reached out to DraftKings for a statement.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
