The United States Court of Appeals for the Third Circuit confirmed an original decision to dismiss Antar’s lawsuit against BetMGM. Antar claimed that BetMGM encouraged his problem gambling with aggressive marketing and reward programs.
The judgment, however, dismissed his case, stating, “Antar was fully aware that the text messages from his VIP hosts offering bonuses, credits, and deposit matches were exactly as the hosts represented — enticements to continue to gamble.”
Antar, an heir to the “Crazy Eddie” consumer electronics company fortune, gambled over $24 million in more than 100,000 online bets between June 2019 to January 2020. His lawsuit focused on the casino’s VIP program, which his attorney said “preys on those addicted to gambling.”
Casinos not liable for problem gambling
The decision falls in line with other court verdicts that do not hold casinos responsible for protecting problem gamblers. The court stated that, “under the prevailing rules and house odds, ‘the house will win and the gamblers will lose'”.
On the matter of casinos owing a special duty of care to gambling addicts, the judgment stated, “courts across the country that have considered the issue have uniformly rejected imposing such a duty on casinos.”
VIP reward programs are frequently used by online casinos as a marketing strategy, but the court rejected claims this was misleading. The reward programs are clear in their aim of wanting players to play more, and the ruling puts the onus on Antar and other gamblers to be aware of this.
Continue the fight
Antar’s attorney, Matthew Litt, vowed to continue the fight, despite the ruling. He commented, “While I’m very disappointed for Mr. Antar, this does nothing to slow our fight to protect addicted gamblers and their families from the predatory practices of the casinos.”
Other operators have faced lawsuits for similar practices that Litt accused BetMGM of employing. The state of Baltimore recently filed a lawsuit against FanDuel and DraftKings over their casino bonus terms.
Additional lawsuits have been filed against crypto casino operators, accusing them of deceptive practices. Stake face lawsuits in California and Illinois, while High 5 Games had to pay $25 million in a lawsuit in Washington last year.
Washington has stricter rules about acceptable gambling practices than New Jersey, however. In this case, the court recognized that the New Jersey Legislature limited private claims by design. This is a tactic by the state’s regulators to balance “the protection of gambling patrons and the protection of the financial viability of the casino industry.”
In the end, the judgment confirms that problem gambling is an individual issue, and regulators are wary of stepping on casinos that generate huge revenue in taxes.
New Jersey collected $266 million in tax revenue from online casinos in 2023 and a further $358 million in 2024. The state will be wary of making any stricter rules that limit this substantial income.
Explore more articles like this
Subscribe to the Markets Outlook newsletter
Get critical insights to spot investment opportunities, mitigate risks, and refine your trading strategies. Delivered every Monday
Cointelegraph is a free to read website, by purchasing a product through affiliate links in our content, we may earn a commission at no extra cost for our readers. Which will allow us to finance our operations and continue with our research work for our readers. We ensure all recommendations go through in-depth editorial checks to maintain accuracy and quality. You can learn more about this on Content Guidelines and How We Rate pages.
