Marketing Tactics Include Promos and Ads
One of the first tactics Baltimore pointed to is the number of promos advertised to the public. They claim these ads contain misleading information that makes promos, resulting in some claiming them without realizing the costs associated or even the prizes. Most promos and bonuses force new users to create an account and make a deposit, often leading them to wager more than they should.
Industry regulators have cracked down on the language sportsbooks can use when marketing, but operators continue to find ways around them. That has made it hard to regulate, but Blatimore hopes its lawsuit will change that.
Are Sportsbooks Targeting Users?
Another part of the 100+ page lawsuit accuses FanDuel and DraftKings of using an algorithm to target specific bettors and ensure their continued gambling. Why trying to maximize user engagement isn’t new, it has a different impact on regulated sports betting.
The biggest concern is that this algorithm is targeting those suffering from gambling addiction. A barrage of offers, promos, and ads makes it hard for them to resist the temptation. Other factors contribute to the rise in problem gambling, but many responsible gaming advocates believe it is the most significant.
FanDuel Facing Familiar Accusations
The accusations coming from Baltimore echo those from another court case involving FanDuel. A former Jacksonville Jaguars employee is suing the sportsbook for targeting him despite knowing he was betting beyond his means.
The lawsuit claims that FanDuel and one of its VIP hosts flooded the plaintiff with phone calls, emails, and messages offering free bets and other bonuses to push him to keep gambling. One of the claims states that the plaintiff would receive phone calls from the VIP host to check in when they noticed he had stopped betting.
While the accusations from this case are severe, they will hold less water than those from Baltimore. That's because the ex-Jags employee stole money from the team to bet on sports. A sophisticated ruse allowed him to escape it for a long time until law enforcement finally got to him. That makes him hard to trust, but the Baltimore lawsuit could help us see how much of his story is true.
