Baltimore Lawsuit Accuses DraftKings and FanDuel of Exploiting Vulnerable Gamblers with AI

April 3, 2025

In Baltimore, a lawsuit was filed against DraftKings and FanDuel for employing predictive modeling using machine-learning algorithms. These systems allegedly analyzed extensive user data, tailored promotions, and notifications to target vulnerable gamblers, including those exhibiting signs of gambling disorder. The lawsuit claims these tactics were strategically designed to optimize user lifetime value, potentially causing financial and public health concerns for Baltimore residents.

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Alleged deployer

fanduel, draftkings

Alleged developer

flutter-entertainment, draftkings

Alleged harmed parties

people-with-gambling-disorders, baltimore-residents

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Data source

Incident data is from the AI Incident Database (AIID).

When citing the database as a whole, please use:

McGregor, S. (2021) Preventing Repeated Real World AI Failures by Cataloging Incidents: The AI Incident Database. In Proceedings of the Thirty-Third Annual Conference on Innovative Applications of Artificial Intelligence (IAAI-21). Virtual Conference.

Pre-print on arXiv · Database snapshots & citation guide

We use weekly snapshots of the AIID for stable reference. For the official suggested citation of a specific incident, use the “Cite this incident” link on each incident page.