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State of Play
- Baltimore’s legal challenge against major sportsbooks FanDuel and DraftKings has been sent back to a Maryland state court.
- This decision underscores the complex regulatory environment governing online gambling and highlights the state’s role in resolving disputes involving local consumer protection laws and licensed operators.
A Maryland District Court judge recently ruled that the dispute between Baltimore and online sportsbooks and online casino operators FanDuel and DraftKings falls outside federal jurisdiction.
The lawsuit, initiated by Baltimore and Mayor Brandon Scott in April, alleges the operators use misleading promotions and VIP tactics that target at-risk gamblers. Although both companies comply with Maryland state regulations, Baltimore claims they violate updated city consumer protection ordinances.
Judge Stephanie Gallagher applied a Buford abstention, emphasizing that state courts should address the conflict between local ordinances and state gambling regulations to maintain a coherent legal framework.
Case could impact disputes in other states
The ruling affirms Maryland’s primacy in regulating online casino and sports betting, especially where local ordinances intersect with statewide licensing.
The remand means Maryland courts will interpret how city-specific consumer protections apply to companies operating lawfully under state licenses.
Operators like FanDuel and DraftKings must navigate both state mandates and local rules, potentially impacting the promotional strategies and compliance costs related to responsible gambling.
The case’s remand to the state court could signal forthcoming detailed judicial scrutiny of how local consumer protections coexist with state gambling laws. Observers should watch for outcomes that may influence similar disputes nationwide, particularly given recent trends in states refining online gambling regulation.
Given the complexity of state gambling laws, the local aspect introduces another layer of complexity to the issue as well. How this case is ultimately decided may influence how other cities and towns in Maryland and the US approach gambling in their communities, not just for current disputes.
Based on reporting by Jessica Welman for SBC Americas.
