Baltimore Lawsuit Against Sportsbooks Must Be Decided by the City

FanDuel and DraftKings picked up a loss in Maryland this week. 

A Maryland District Court rejected a request from FanDuel and DraftKings to move a lawsuit filed by the City of Baltimore to the federal level. The lawsuit alleges that the sportsbooks violated the city’s marketing regulations and created a scheme to lure users. The judge ruled that, because the rules violate city laws, the federal government should not have a role.

DraftKings and FanDuel had hoped to move the case, citing the city's advantage in its own courts. While a move to state court is still possible, it would still present an uphill battle.

The court ruling recognized the authority of cities and states to enforce their own regulations on sports betting. It stated that the federal government stepping in would violate the city’s rights, as well as the state that regulates the market. 

With the lawsuit remaining in a city court, a jury will hear the case. It can be challenging for major corporations to sway the public, especially in industries like sports betting. If the city provides testimony from alleged victims, it will be hard to sway jurors to rule against them.

Maryland Sends Warning Over Predictions

The state of Maryland also made some news this week. The Lottery and Gaming Control Commission sent out an official warning to the 12 online sportsbooks operating in the state, warning them against offering sports prediction markets. They deemed the industry an illegal form of gambling and would consider rescinding sportsbook licenses of any operators that join it.

Several other states have issued similar warnings, but before FanDuel and DraftKings announced they would soon offer sports prediction markets. The operators have publicly stated that they don’t believe those threats will be enforced, but that wasn’t enough to stop Maryland from joining the fight.

While the regulator could be bluffing, it would be an odd tactic after the two industry leaders already shared their plans. That means they may have a bigger plan, which could change the dynamic between the two rival industries.