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.
Entities
View all entitiesAlleged: 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
Risk Subdomain
A further 23 subdomains create an accessible and understandable classification of hazards and harms associated with AI
4.3. Fraud, scams, and targeted manipulation
Risk Domain
The Domain Taxonomy of AI Risks classifies risks into seven AI risk domains: (1) Discrimination & toxicity, (2) Privacy & security, (3) Misinformation, (4) Malicious actors & misuse, (5) Human-computer interaction, (6) Socioeconomic & environmental harms, and (7) AI system safety, failures & limitations.
- Malicious Actors & Misuse
Entity
Which, if any, entity is presented as the main cause of the risk
AI
Timing
The stage in the AI lifecycle at which the risk is presented as occurring
Post-deployment
Intent
Whether the risk is presented as occurring as an expected or unexpected outcome from pursuing a goal
Intentional
Incident Reports
Reports Timeline
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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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