【Willbet Online Casino Games | Play Casino Online】DraftKings, FanDuel face legal challenge from City of Baltimore

The complaint, submitted by the Baltimore City Law Department on 3 April, accuses the companies of widespread violations of the city’s Consumer Protection Ordinance (CPO).

Among other complaints, it alleges deceptive and abusive tactics that exploit users — particularly those suffering from gambling disorders.

According to the 106-page complaint, DraftKings and FanDuel have used manipulative promotional strategies and sophisticated algorithms to maximise user engagement and profits at the expense of public health.

Baltimore argues that both companies’ business models are specifically engineered to target individuals vulnerable to gambling addiction.

The lawsuit accuses the firms of deploying aggressive inducements, such as “bonus bets” that must be used within narrow timeframes.

This is similar to arguments that have previously led to lawsuits in New Jersey and other states.

It also accuses the operators of leveraging push notifications, personalised promotions, and VIP programmes to retain users once they are signed up.

The lawsuit underscores that Maryland’s online sports betting industry, legalised in 2021, has rapidly grown into a multibillion-dollar sector.

In fiscal year 2024 alone, Marylanders wagered over $5bn, with $3.7bn already wagered in the first half of fiscal year 2025.

Baltimore, the state’s most populous city, accounts for a significant share of this activity. DraftKings and FanDuel dominate the market, collectively capturing over 90% of Maryland’s online betting volume in early 2025.

The city alleges that the companies do not merely offer betting services but actively design their platforms to cultivate compulsive gambling behaviours.

Promotional programmes called into question

According to the suit, DraftKings’ and FanDuel’s promotional strategies allegedly mislead users into underestimating the financial risks involved.

For instance, a common offer grants new users $150 in “bonus bets” after an initial $5 wager, but the fine print requires users to place six separate $25 bets within a week, a structure the city claims is meant to rapidly entrench betting behaviour.

Maryland has 11 licensed sportsbook operators that offer promos and bonuses, but only DraftKings and FanDuel are named in the suit.

Baltimore’s complaint also highlights the use of behavioural data and predictive modelling, which it claims are used to identify users likely to develop or already suffering from gambling addictions.

These users, according to the city, are targeted with personalised promotions and continual engagement tactics such as customised push notifications and loyalty programmes.

The platforms track metrics such as bet frequency, bet size, time spent on the app, and “loss-chasing” behaviour — factors known to correlate strongly with gambling harms.

The VIP programmes operated by both companies also come under particular scrutiny.

These programmes, including DraftKings’ “Dynasty Rewards” and FanDuel’s “Players Club,” offer escalating rewards and personalised attention from account managers, with incentives directly tied to betting volume.

The lawsuit describes cases in which VIP managers allegedly pushed users to continue gambling even after they expressed concern over their own behaviour.

This includes instances where users were offered cash bonuses after disclosing financial hardship or intentions to quit.

Baltimore contends that such practices are particularly harmful to young adults, citing data from local health institutions showing rising calls to problem gambling hotlines from college-age men.

Operators fail to target responsible gambling

The complaint draws attention to the city’s experience with gambling-related public health crises, referencing findings from the Maryland Center of Excellence on Problem Gambling.

The organisation’s data, according to the lawsuit, shows that over 20% of online sports bettors exhibit signs of disordered gambling — nearly double the rate of traditional bettors.

The lawsuit further accuses the companies of ignoring public health warnings and regulations in Maryland that prohibit sports betting practices deemed harmful to the public or the integrity of the industry.

Notably, it contrasts the companies’ operations in the US with their practices in the UK.

There, similar platforms — some operated by the same parent companies — have voluntarily implemented stricter responsible gambling safeguards, such as financial vulnerability checks and age-related protections.

In its request for relief, Baltimore seeks civil penalties for each instance of unfair or deceptive conduct under the city’s consumer protection laws.

It also demands injunctive relief to halt what it deems to be the targeting and exploitation of those with gambling disorders, and seeks reforms to the platforms’ promotional and user retention practices.

The lawsuit explicitly asks the court to impose restrictions akin to those already adopted in overseas jurisdictions, including the UK, where gambling operators have reduced VIP incentives and introduced mandatory safety checks.

The City of Baltimore is represented by its law department, led by City Solicitor Ebony Thompson, along with private counsel from DiCello Levitt LLP.

The filing includes a demand for a jury trial and outlines numerous examples and data points to support its allegations of systemic misconduct by DraftKings and FanDuel.