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Incident 1427: Baltimore Lawsuit Alleged DraftKings and FanDuel Used Machine-Learning-Driven Targeting to Exploit Vulnerable Gamblers

Description: In Baltimore, the city sued DraftKings and FanDuel, alleging that the companies used predictive modeling with machine-learning algorithms, extensive user data, personalized promotions, push notifications, and VIP programs to identify and exploit vulnerable bettors, including people showing signs of gambling disorder. The complaint alleges these systems were designed to maximize user lifetime value and contributed to financial and public-health harms among Baltimore residents.
Editor Notes: For copies of the original 04/03/2025 lawsuit, see (1) https://dicellolevitt.com/wp-content/uploads/2025/04/Sports-Gambling-Complaint-City-of-Baltimore-Stamped-Copy.pdf and (2) https://www.classaction.org/media/baltimore-v-draftkings-fanduel.pdf. For a copy of City of Baltimore v. DraftKings Inc. et al, No. 1:2025cv01487 - Document 46 (D. Md. 2025), see https://law.justia.com/cases/federal/district-courts/maryland/mddce/1:2025cv01487/582069/46/ (11/10/2025). This incident ID was created 03/21/2026.

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Alleged: DraftKings and Flutter Entertainment developed an AI system deployed by FanDuel and DraftKings, which harmed People with gambling disorders and Baltimore residents.
Alleged implicated AI systems: Sports betting personalization algorithm , Machine-learning predictive targeting system , FanDuel betting platform and DraftKings betting platform

Incident Stats

Incident ID
1427
Report Count
1
Incident Date
2025-04-03
Editors
Daniel Atherton

Incident Reports

Reports Timeline

Incident OccurrenceBaltimore Lawsuit Claims FanDuel and DraftKings Algorithms Designed to Create Problem Gamblers
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Baltimore Lawsuit Claims FanDuel and DraftKings Algorithms Designed to Create Problem Gamblers

Baltimore Lawsuit Claims FanDuel and DraftKings Algorithms Designed to Create Problem Gamblers

casinobeats.com

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Baltimore Lawsuit Claims FanDuel and DraftKings Algorithms Designed to Create Problem Gamblers
casinobeats.com · 2025

Sports betting giants FanDuel and DraftKings are facing legal action from the City of Baltimore.

The complaint, filed in the Circuit Court for Baltimore City, alleges that the two operators have repeatedly violated the city’s Consumer Prote…

Variants

A "variant" is an AI incident similar to a known case—it has the same causes, harms, and AI system. Instead of listing it separately, we group it under the first reported incident. Unlike other incidents, variants do not need to have been reported outside the AIID. Learn more from the research paper.
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