Baltimore sues DraftKings alleging misleading tactics

LEGAL

The City Baltimore filed a lawsuit Thursday against DraftKings, accusing the leading sports betting sites of exploiting the vulnerabilities of people likely to have gambling disorders through the lure of lucrative bonuses and other means.

“First, Defendants get Baltimoreans in the door with the promise of ‘bonus bets,’ or other similarly named promotions, designed to induce Baltimoreans to bet,” said the suit filed in Baltimore City Circuit Court by the city solicitor on behalf of Mayor Brandon Scott and the City Council.

The bonuses are often loaded with fine print containing “complex terms and conditions,” the suit said.

The sportsbooks’ goal is to use inducements to drive people to the site. “Some get hooked, and that’s the point,” the suit said. FanDuel was also named in the suite.

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.”

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