Baltimore sues DraftKings, FanDuel for allegedly exploiting problem gamblers
Nearly seven years since the Supreme Court opened the floodgates for state-by-state legalized sports wagering, it's still the Wild West. And with the federal government doing little if anything to regulate the sports-betting industry, it's up to litigation to apply guardrails to our current BET! BET! BET! reality.
The latest lawsuit was filed not by an individual but a city full of them. Baltimore has sued Draftkings and FanDuel for allegedly exploiting problem gamblers.
'These companies are engaging in shady practices, and the people of our city are literally paying the price,' Baltimore mayor Brandon Scott said in a press release, via ESPN.com. 'DraftKings and FanDuel have specifically targeted our most vulnerable residents -- including those struggling with gambling disorders -- and have caused significant harm as a result. This lawsuit is a critical step to hold them accountable and protect all Baltimoreans.'
The lawsuit alleges that the companies hope to lure bettors to bet, until they're addicted to betting. Neither company provided comment to ESPN.com in response to the lawsuit.
'Defendants are not interested in people merely dipping their toes in the water,' the complaint alleges. 'They want bettors to bet, in significant amounts, over and over. Some get hooked, and that's the point.'
Attorney Adam Levitt, who represents Baltimore in the lawsuit, told ESPN.com that this is the first lawsuit brought by a public body against online sportsbooks since the Supreme Court allowed nationwide legalized sports betting in May 2018. And Levitt explained that, unlike individuals who agree to arbitration clauses that limit their legal options, public entities aren't bound by efforts to force lawsuits into forums that will be far more favorable to the companies involved.
Baltimore demands both statutory penalties and a court order forcing the sportsbooks to end practices that allegedly create and/or cater to problem gamblers.
The industry needs fair and proper protections for consumers, because the natural incentive to develop and maintain a robust array of gamblers who consistently lose is strong. (Obviously, if they consistently win, they're at risk of getting banned.)
Sports betting isn't the stock market. Investors can make a lot of money, over time. Bettors will lose, over time. That's why it's so attractive to be the house.
This doesn't mean people should never bet. But when they do, they should always bet responsibly. And they should only spend money they're prepared to lose. Because, over time, they will.
Treat the money like entertainment dollars. Expect to lose it. If you don't lose, treat the winnings like the found money it is.
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