Baltimore sues DraftKings, FanDuel, alleging misleading tactics - ESPN

The city of Baltimore sued DraftKings and Flutter Entertainment, the parent company of FanDuel, on Thursday, accusing the sportsbooks of engaging in deceptive and unfair practices to target and exploit vulnerable gamblers.

The complaint, which was filed in Baltimore City Circuit Court, a state court, alleges that the companies use misleading promotions to attract bettors, then leverage data and analytics to keep problem gamblers betting, practices it says are in violation of the city's 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 news release. «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 declined to comment, while DraftKings did not provide a statement.

As the lawsuit outlines, the companies acquire new users by offering bonus bets — monetary credits that can only be used at the sportsbook — as a reward for signing up. These bonus bets are often only valid for seven days, which encourages frequent betting in the early stages, according to the complaint.

«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 complaint reads. «Some get hooked, and that's the point.»

Once users start betting, the companies collect data on them and use the data to identify those most likely to gamble more, according to the complaint.

One company owned by Flutter has collected «at least