A report published by the Campaign For Accountability has criticized US gambling firms that oppose measures to reduce problem gambling.
The 23-page report is titled “The Online Gambling Industry’s Two-Faced Effort to Kill Consumer Protections”. It goes into detail about the different lobbying efforts the gambling industry has taken to stop states from putting protective measures in place against gambling addiction.
For example, the Sports Betting Alliance (SBA) opposed a bill in Minnesota to ban in-game bets. The lobby group made up of US gambling companies said the ban would greatly harm states’ tax revenues as in-game bets make up around half of all bets.
US gambling companies influence regulators
The report goes on to list many other occasions that sportsbooks have opposed state legislation looking to protect users.
Another cited example is when DraftKings opposed a bill in Arizona related to promotions. The bill stated the word “free” should not be used in promotions unless it is 100% free. DraftKings argued that it was “industry standard to promote free play to accompany a player’s deposit”.
Arizona took the leading sportsbook’s view on board and continues to allow companies to promote “free bets” that require making a deposit.
The sportsbooks argue that limiting their promotions will increase the number of players at unlicensed operators. Even with legalized sports betting, many players use alternative sites that offer more promotions and better odds.
Companies protecting profits, not players
The report also criticizes US gambling companies that have opposed introducing deposit limits. Companies argue that individual wager limits serve this purpose. Numerous examples of occasions when states have proposed introducing monthly or daily limits are cited.
There is a claim that the industry is hypocritical as while they oppose deposit limits, they have pay-out caps and also place limits on players.
The report states, “While gambling operators continue to fight against loss limits or mandatory deposit limits, they regularly impose win limits to cap payments to sports gamblers who prove too successful.
“This may involve capping the size of players’ individual bets or suspending their account outright.”
Massachusetts is investigating the practice of limiting players, but companies insist they do not place limits purely on winning customers. Alex Smith of Fanatics stated, “The notion that if you win, you’ll be banned is not statistically correct.”
More regulation needed
Campaign for Accountability executive director Michelle Kuppersmith compared the US gambling industry to big tobacco and advocates similar restrictions to the companies.
She stressed that it is “important for lawmakers to understand that implementing consumer protections around online sports betting isn’t just picking winners and losers on a balance sheet.
“With gambling addiction so troublingly linked to suicidality, the lives of their constituents – especially young people – are on the line.”
While lawmakers will continue to propose new rules to protect citizens, lobby groups and the SBA will continue to oppose them.
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