The city of Baltimore is going after DraftKings and FanDuel for allegedly exploiting vulnerable gamblers.
The city of Baltimore, Maryland, filed a lawsuit against DraftKings and FanDuel April 4, accusing the two sportsbooks of exploiting “disordered gamblers.”
The complaint, filed in Baltimore City Circuit Court on behalf of Mayor Brandon Scott and the Baltimore City Council, accuses the companies of using misleading promotions to lure vulnerable bettors, ESPN reports. The lawsuit states that FanDuel and DraftKings exploit data and analytics to keep problem gamblers wagering—actions the city claims violate its Consumer Protection Ordinance.
“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.”
According to the complaint, the companies attract new users by offering bonus bets—credits that can only be used on their platforms within seven days—as sign-up incentives. These bonuses push users to place frequent bets early on.
“First, Defendants get Baltimoreans in the door with the promise of ‘bonus bets,’ or other similarly named promotions, designed to induce Baltimoreans to bet,” the lawsuit states.
The bonuses are often loaded with fine print containing “complex terms and conditions,” the suit said.
“Defendants are not interested in people merely dipping their toes in the water: They want bettors to bet, in significant amounts, over and over,” the lawsuit reads. “Some get hooked, and that’s the point.”
The lawsuit seeks unspecified statutory penalties and an injunction requiring the defendants to stop targeting and exploiting problem gamblers and overhaul their platforms’ “exploitative” features.
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Source: Black Enterprise
