A new lawsuit could throw an interesting twist into the Maryland sports betting market as Baltimore officials look to take the lead in what they feel is a “national problem.”
Baltimore Mayor Brandon Scott and the City Council filed a lawsuit against FanDuel parent Flutter Entertainment and DraftKings this week, claiming “deceptive and unfair practices” in Maryland sports betting. The lawsuit alleges that the companies violated the city’s Consumer Protection Ordinance.
“These companies are engaging in shady practices, and the people of our city are literally paying the price,” Scott said in a 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.”
Sportsbooks confident in MLGCC regulatory compliance
In response to the allegations, a FanDuel spokesperson provided the following statement:
“FanDuel does not comment on specific allegations in pending litigation. We are confident the company operates in accordance with all laws, including those established and enforced by the State of Maryland’s Lottery and Gaming Control Commission.”
DraftKings declined to comment on the issue Thursday. The MLGCC did not respond to requests for comment.
MD sports betting lawsuit
The lawsuit alleges DraftKings and FanDuel are using a “two-pronged scheme to harm Baltimoreans.” It alleges the scheme begins with using “misleading promotions” like “bonus bets.”
The suit alleges the companies “leverage the vast array of data they have about their users … to identify those who suffer from gambling disorder, and then extract what they can from them.”
The Baltimore City Department of Law and DiCello Levitt are representing Scott and the City Council.
Alleged ‘Corporate Greed’
City Solicitor Ebony Thompson said the companies “put corporate greed ahead of the well-being of Baltimoreans.”
“Their predatory practices have caused significant harm to our community, and we are taking action to hold them accountable and protect our citizens,” Thompson said.
DiCello Levitt Founding Partner Adam Levitt added:
“Putting profits over people, these companies have engaged in unfair, abusive, and deceptive trade practices. We stand with the City of Baltimore in their efforts to safeguard Baltimoreans by holding DraftKings and FanDuel accountable and ensuring they implement responsible gambling measures to prevent further harm.
“The predatory practices of sports betting sites are a national problem, and the City of Baltimore is taking a lead role in efforts to curtail them. You can bet we will bring the fight.”
Why DraftKings And FanDuel?
There are 11 online sportsbooks in the Maryland market. The lawsuit notes that in January 2025, Maryland bettors placed $475 million in combined bets on DraftKings and FanDuel, which is 77% of the $618.8 million wagered that month.
For now, the lawsuit just includes DraftKings and FanDuel. That could expand in the future.
“They’re by far the biggest players in the market,” Levitt said in a statement provided to LSR. “We haven’t ruled out expanding the scope against other companies, however.”
MD Sports Betting Market
Maryland voters approved sports betting in 2020, and the legislature enacted its framework in 2021. Sports betting in the state launched in 2021, with online sportsbooks going live in November 2022.
Since launch, Maryland sportsbooks have handled $12.6 billion in wagers. The sportsbooks held 11.4% of that amount for $1.4 billion in sports betting revenue.
A Maryland lawmaker introduced a bill to repeal online sports betting this session.
Growing National Attention
Legislators at the federal level are beginning to file legislation that prohibits the use of promotional phrases like “bonus bet.”
Earlier this year, Rep. Paul Tonko and Sen. Richard Blumenthal reintroduced the SAFE Bet Act. Among a slew of industry safeguards, the legislation would create a national advertising framework.
That framework would include the prohibition of words like “bonus,” “risk-free,” and “no-sweat.”
