Friday, October 16, 2026

Baltimore Sues DraftKings, FanDuel Over ‘Exploiting’ Gambling Addicts

The city claims the sportsbooks create and encourage problem gamblers to maximize profits.

Mitch Stringer-Imagn Images

Want more from Front Office Sports
in your search results?

Add Front Office Sports on Google

The City of Baltimore sued DraftKings and FanDuel parent Flutter on Thursday, claiming the sportsbooks lure in customers with deals, entice them into becoming problem gamblers, and excessively target these users to exploit them for financial gain.

“The platforms are designed to create disordered gamblers and then exploit them,” reads the 51-page complaint filed in Baltimore City Circuit Court.

The complaint says DraftKings and FanDuel use “bonus bets” and other offers to bring in customers and “hook” them on betting. Then, the filing claims, the sportsbooks “relentlessly ping their users to bet and bet often,” and “purposefully tweak their algorithms to target those likely to have gambling disorders and extract what the companies euphemistically refer to as ‘maximum potential revenue’ or ‘lifetime total value’ from each user over time.” 

The companies have so much data on their users that they can target push notifications to their betting preferences, the suit says, and set up VIP programs that further personalize their experience with “hosts” who chat and give offers to frequent bettors. At least one local problem gambling organization has received an increased number of calls from young men as the sports betting industry grows, the suit claims.

The complaint references a widely-cited 2020 report from the U.K. parliament’s House of Lords that found just 5% of users produce 60% of the profits in online gaming.

The filing says many of the data-driven practices used to identify VIPs in the U.S. have been changed with government reforms to spot potential problem gamblers in the U.K. There, Flutter ended VIP programs and put in extra protections for users under 25 years old, the suit mentions.

Baltimore is the first U.S. city or state to take on sportsbooks in court for targeting problem gamblers. A woman in Pennsylvania sued DraftKings in February in federal court in New York, saying the company “intentionally targeted and preyed on” her even after she expressed financial struggles to her VIP “host.”

The city argues the companies violate Baltimore’s Consumer Protection Ordinance, and demand a jury trial.

“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.”

Fanduel said that it “does not comment on specific allegations in pending litigation” but that it was confident it hadn’t broken Maryland law. A representative for DraftKings did not immediately respond.

Download the FOS App

The business of sports, in your pocket.

QR code to download the app

Scan the QR code to get the app now.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

NBA Draws New Lines on What Fans Can Bet On

The league is restricting risky player props.
Kalshi logo appears in this illustration taken April 22, 2026.

Who’s in Charge of the Oklahoma Tribe Doing Business With Kalshi?

Two men separately claim to lead a tribe doing business with Kalshi.
Exclusive

SportsGrid Up for Sale Amid Revenue Slide

Bankers have been pitching suitors since this summer.
Oct 10, 2026; Lexington, Kentucky, USA; LSU Tigers tight end Zach Grace (44) celebrates after scoring a touchdown with offensive lineman Aliou Bah (55) and wide receiver Eugene Wilson III (3) during the first quarter against the Kentucky Wildcats at Kroger Field.

SEC Accuses LSU of ‘Stubborn Refusal’ to Follow Rules

The conference argued the lawsuit against LSU is still relevant.
podcast thumbnail mobile
Front Office Sports Today

10/16/26 – Aikman Eyes Free Agency, CFP Nears 24 Teams, Stoudemire Becomes Cop

0:00

Featured Today

College Flag Football Is Outgrowing Its DIY Era

Women have been building the college game themselves at the club level.
Oct 5, 2026; Pittsburgh, Pennsylvania, USA; Pittsburgh Penguins general manager Kyle Dubas arrives at the arena before the Penguins host the Winnipeg Jets at PPG Paints Arena
October 12, 2026

NHL’s New Wave of GMs Is Built Different

“I am in the prediction business,” Devils GM Sunny Mehta tells FOS.
Action Images/Peter Cziborra
October 9, 2026

Is Leicester City’s $264 Million Price Tag Too Rich for Hungry Investors?

After falling from grace, how much is a former top club worth?
Oct 3, 2026; Starkville, Mississippi, USA; Alabama Crimson Tide head coach Kalen DeBoer waits to run onto the field prior to the game against the Mississippi State Bulldogs at Davis Wade Stadium at Scott Field. Mandatory Credit: Petre Thomas-Imagn Images
October 7, 2026

Who Is Alabama Football in Year 3 Under Kalen DeBoer?

The No. 6 Crimson Tide host No. 2 Georgia on Saturday.
Cubs behind the scenes
October 6, 2026

Hollywood and TikTok: Sports Media’s New ‘Blueprint’

Teams and leagues are pouring money into the quest for fans.
Cincinnati Bengal T.J. Houshmandzadeh places a $20 bet on the Cincinnati Bengals winning the Super Bowl during the FanDuel Sportsbook at Belterra Park Cincinnati Grand Opening at Belterra Park in Cincinnati.

Senator Says Sportsbooks VIP Betting Inquiry Will Expand

Sen. Richard Blumenthal tells FOS he’ll look at prediction markets, too.
U.S. President Donald Trump speaks with Commodity Futures Trading Commission (CFTC) Chairman Michael Selig in the Roosevelt Room at the White House in Washington D.C., U.S., August 19, 2026.
Exclusive
September 29, 2026

Trump Admin Preparing Crackdown on Prediction-Market Promos

The CFTC is looking at incentives like “risk-free” bets.
Sep 17, 2026; New York City, New York, USA; Philadelphia Phillies shortstop Trea Turner (7) dives safely into third base after advancing on an errant New York Mets pickoff throw to first base during the seventh inning at Citi Field. novig
Exclusive
September 30, 2026

Novig to Quadruple Valuation With New Funding Round

The company is fundraising at a $2 billion valuation.
Sponsored

The State of AI in Sports 2026

Front Office Sports and Teamworks reveal how AI is reshaping sports in the first industry-wide report on adoption, investment, and impact.
Asset Class
September 22, 2026

The Firms That Power Prediction-Market Trades

“Essentially, our role is to help bridge demand across time and space.”
Apr 1, 2026; Salt Lake City, Utah, USA; Utah Jazz forward Cody Williams (5) brings the ball up the court against the Denver Nuggets during the first quarter at Delta Center.
September 22, 2026

Ryan Smith Doesn’t Want Betting to Take Over Sports

“I think we need a little more moderation in all of it.”
Jason Robins Front Office Sports
September 15, 2026

DraftKings CEO Fires Back at Headline Calling Company ‘Struggling’

“We’re doing great,” Jason Robins said in response to the article.
First at FOS
September 15, 2026

WNBA Union Rips NBA for Exclusion From Betting Letter

Five men’s sports leagues sent a memo to regulators about betting-related harassment.