Baltimore’s Lawsuit Against DraftKings, FanDuel Moves to Federal Court

A Legal Battle Heats Up

Baltimore’s bold fight against DraftKings and FanDuel took a big turn on May 7, when the companies moved the case from Baltimore’s Circuit Court to the U.S. District Court for Maryland.

“These companies are engaging in shady practices,” Mayor Brandon Scott said, accusing the betting giants of exploiting vulnerable residents.

Filed on April 3, the city’s first-of-its-kind lawsuit claims the firms’ algorithms and promotions target problem gamblers, sparking an industry debate.

With DraftKings and FanDuel eyeing a June 13 motion to dismiss, Baltimore’s pushing to reclaim its home court, setting up a high-stakes clash.

Why the Federal Court Move?

The companies filed a Notice of Removal, citing diversity jurisdiction: Baltimore is in Maryland, DraftKings is Boston-based, and FanDuel’s parent, Flutter Entertainment, is Irish.

“The predatory practices of sports betting sites are a national problem,” said Adam Levitt of DiCello Levitt, Baltimore’s counsel, noting damages exceed $75,000.

The city seeks up to $1,000 per violation of its Consumer Protection Ordinance, potentially racking up millions given widespread user contacts.

Moving to federal court could give DraftKings and FanDuel a broader jury pool, a strategic edge, but Baltimore’s filed to send it back to state court, craving that home-field vibe.

The Lawsuit’s Core Claims

Baltimore’s suit pulls no punches, alleging DraftKings and FanDuel use “unfair, abusive, and deceptive” tactics to hook problem gamblers.

“Their predatory practices have caused significant harm,” said City Solicitor Ebony Thompson, pointing to bonuses like $150 in bets that expire in seven days, creating a “false sense” of low risk.

The city claims the firms’ algorithms target users showing addiction signs, chasing losses, late-night logins, with personalized push notifications and VIP perks.

“They’re getting users hooked,” Thompson added. Data shows 8.6% of Maryland adults face gambling disorders, with 30-40% of online bettors at risk, hitting young men hardest.

Next Steps and Legal Timeline

The legal clock’s ticking. DraftKings and FanDuel must file a joint motion to dismiss by June 13, 2025, likely arguing compliance with state laws and improper targeting of their entities.

Baltimore’s response is due July 18, with the companies replying by August 8. “You can bet we will bring the fight,” Levitt said, but a ruling on the case’s merits won’t come before the NFL season kicks off. FanDuel, via Flutter, insists it “does not comment on pending litigation” but denies breaking Maryland law. DraftKings stayed mum.

This lawsuit’s a first, with Baltimore leading the charge against sports betting giants. “We’re starting to see more calls from college-age males,” said Mary Drexler of the University of Maryland’s Center of Excellence, noting a spike in help-line calls from young men and parents.