Baltimore Lawsuit Alleged DraftKings and FanDuel Used Machine-Learning-Driven Targeting to Exploit Vulnerable Gamblers

The City of Baltimore filed a lawsuit in Baltimore City Circuit Court against sports betting operators FanDuel and DraftKings, alleging violations of the city's Consumer Protection Ordinance. The complaint accuses both companies of using deceptive and abusive practices that specifically target vulnerable users, particularly those suffering from gambling-related harms. The lawsuit alleges that both platforms use proprietary algorithms to identify users likely to suffer from gambling disorders and then target them with personalized push notifications and inducements to bet. The companies allegedly offer new user promotions of $150 in bonus bets that must be used within seven days, with DraftKings providing six separate $25 bets and FanDuel providing incremental amounts. The lawsuit claims these platforms are designed to create disordered gamblers and then exploit them, with VIP programs used to personalize inducements and algorithms helping identify the most effective push notifications. Professional gamblers reportedly program bots to mimic gambling disorder behavior to exploit the targeting systems. Baltimore's University of Maryland Center of Excellence noted an increase in calls from college-age males and their parents regarding gambling problems. The lawsuit seeks injunctive relief, civil penalties, and fundamental changes to how these companies operate in Baltimore.