Gambling firms are banding together across the US to fight against proposed regulations following a surge in online betting.
The group of united companies are lobbying a variety of state capitals to ward against proposed consumer protections. These suggestions come out of a goal to reduce addiction-related gambling harm after a notable rise in online gambling since a 2018 ruling that started a wave of gambling legalizations.
The Guardian has seen a report from the Campaign for Accountability, detailing a number of regulations ranging from restrictions on advertising and promotions to deposit limits. However, gambling firms are pushing back on such suggestions.
What regulations are being opposed?
For example, the report details how DraftKings opposed a rule in Arizona back in 2022 that would mean that promotions should only be described as “free” if they actually are, rather than requiring any upfront payment. The gambling firm argued that it was “industry standard to promote free play to accompany a player’s deposit”, even when gamblers are required to make a deposit in order to receive the “free” bet.
Ultimately, the Arizona authorities adopted DraftKings’ suggestions, with state law now reading: “Promotions and/or bonuses described as free shall clearly disclose material facts, terms, and conditions.”
Another example across a few different states is proposing banning types of wagers that are often associated with driving gambling addictions, such as in-game bets, where odds are offered while an event has already started. In this case, the Sports Betting Alliance (SBA) came together as an industry group to oppose such a ban.
Speaking to the Guardian, a spokesperson for the American Gaming Association, a lobby group made up of representatives from most major casino companies, among others, maintained that the legal betting industry is “grounded in responsibility, transparency, and consumer protection”.
“Across the country, more than 5,000 state regulators and policymakers work with licensed operators each day to enforce strong regulatory frameworks and uphold a shared commitment to responsible gaming, as well as efforts to support those experiencing problem gambling,” the spokesperson said. “This includes a wide range of initiatives – from public education campaigns to state-run helplines and funding for research and treatment services for those seeking assistance.”
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