Baltimore is suing online betting giants DraftKings and FanDuel, accusing the companies of violating consumer protection rules by targeting and exploiting people with gambling problems.

In the lawsuit, filed Thursday in Baltimore City Circuit Court, the city alleges that DraftKings and FanDuel, owned by Flutter Entertainment, use “misleading promotions” that encourage compulsive gambling behavior. The online gambling sites also allegedly use “sophisticated analytics” to “identify those who suffer from a gambling disorder,” according to the lawsuit.

Mayor Brandon Scott said DraftKings and FanDuel are specifically targeting the city’s most vulnerable residents.

“These companies are engaging in shady practices, and the people of our city are literally paying the price,” Scott said in a press release. “This lawsuit is a critical step to hold them accountable and protect all Baltimoreans.”

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FanDuel said they don’t comment on pending litigation. DraftKings didn’t immediately respond to a request for comment.

The suit comes just days before the peak of March Madness, with the Final Four games in the NCAA Tournament being played Saturday. Americans are estimated to wager up to $3.1 billion in legal online and in-person bets during the tournament this year.

Since Maryland lawmakers passed a law legalizing online sports betting in 2021, the state has become “a sizable sports betting market that continues to grow,” according to the lawsuit, topping $475 million in February 2025.

According to Maryland Lottery and Gaming, there are 11 online sports wagering operators legally authorized to operate in the state, but DraftKings and FanDuel account for a large portion of the bettors. In January of this year alone, Marylanders placed more than $457 million in combined bets on the two platforms, while their closest competitor, BetMGM, took in $51 million, according to the lawsuit. Many of the bettors are in Baltimore, according to the lawsuit.

One of the companies’ practices is “bonus bets,” according to the lawsuit, which the city claims get new users hooked on gambling. DraftKings had a promotion of $150 in “bonus bets,” according to the lawsuit, which had to be used within seven days of signing up with the gambling site.

The city filed the lawsuit with DiCello Levitt, a law firm that is also representing the city against those responsible for the Francis Scott Key Bridge collapse.