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

Occurred
Apr 3, 2025
Published
Apr 7, 2025
Source
AI Incident Database

Summary

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.

Developers

  • Flutter Entertainment
  • DraftKings

Deployers

  • FanDuel
  • DraftKings

Harmed parties

  • People with gambling disorders
  • Baltimore residents

Classification

Category confidence: 85%
Severity confidence: 90%

Rationale: Lawsuit alleges ML systems exploited vulnerable populations causing financial and public health harm.

Classifier: Qwen/Qwen3.5-35B-A3B-FP8

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