Baltimore sues DraftKings, FanDuel over alleged "predatory" online sports betting

Baltimore City is suing sports betting giants DraftKings and FanDuel, owned by Flutter Entertainment, over "predatory" practices and for encouraging compulsive gambling behavior.

The city claims the sports betting sites use misleading promotions to attract new bettors and prey on people who have gambling addictions.

The lawsuit argues that DraftKings and FanDuel are engaging in "deceptive and unfair practices by targeting and exploiting vulnerable gamblers in violation of Baltimore's Consumer Protection Ordinance (CPO)."

"These companies are engaging in shady practices, and the people of our city are literally paying the price," Baltimore Mayor Brandon Scott said in a statement. "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."

Baltimore City argues in the complaint that DraftKings and FanDuel's persuasions are leading to addictions to their gambling platforms and then exploiting and targeting the most vulnerable.

"Their predatory practices have caused significant harm to our community, and we are taking action to hold them accountable," said Baltimore City Solicitor Ebony Thompson, with the Baltimore City Department of Law. 

WJZ reached out to both DraftKings and FanDuel, but they have yet to respond.

Sports gambling is "like a trap"

Brody Probst, a Maryland resident, says he enjoys making bets. He also said the betting giants are making people gamble.

"I'm an avid gambler, I like to throw a little home run parlay, but at the same time, I don't think it's making people choose to do it," Propst said.

Baltimore's complaint alleges that the companies use misleading bettors and then leverage data analytics to keep problem gamblers making wagers.

"Some people are not gamblers, and once they do it, it's like they're trapped," Maryland resident Anthony Jenson said. "It's like a trap, pretty much."

Some of those practices include offering bonus bets, or monetary credits that can only be used on the apps within seven days of signing up. Those promotions, people tell WJZ, are fueling gambling addictions 

"They have these offers, like bet $5 and we'll give you $200," Jenson said. "A lot of people fall for that, and they don't know what they're getting themselves into." 

Some residents argue that when it comes to online gambling, it's up to the person signing up to know when to quit.

"You have a choice, so sooner or later, we have to decide what's more important, individual choice or government regulation," Maryland resident Kenny Lloyd said.

Influence of sports betting

The lawsuit comes during the NCAA Men's Basketball Tournament, which is one of the biggest sports gambling events of the year. 

Sports betting contributed $6.3 million to Maryland in February, according to Maryland Lottery and Gaming.

Between July 2024 and February 2025, sports wagering contributed $61,171,291 to the state, compared to $37,051,266 for the same period in FY2024. The total of nearly $61.2 million in state contributions through eight months of FY2025 surpassed the FY2024 full-year total of $60.3 million.

Sports betters in Maryland wagered $475,708,504 during February 2025 and won back $415,733,938 in prizes.

When did sports betting become legal in Maryland?

Sports betting became legal in Maryland in June 2021, with contributions going to the Blueprint for Maryland's Future Fund, a program that supports public education programs.

In November 2022, mobile sports betting was launched in Maryland. That's when online sports betting with DraftKings and FanDuel became legal.

"This marks the culmination of literally years of effort to get online sports betting up and running in the state of Maryland," then Maryland Gov. Larry Hogan said at the time.

Hogan said the revenue projected by online sports betting in Maryland was expected to generate $30 million in 2023, and up to $100 million by 2026.