U.S. betting operators push back as federal rules threaten free rein

Gambling firms across the United States are going all in to block consumer protections that could curb addiction. A new investigation from The Guardian, based on findings from the Campaign for Accountability, reveals a coordinated push by operators to derail regulations in multiple states. Behind the scenes, lobbyists have worked to water down rules on advertising, bonuses, in-game betting, and data usage.

With legal sports betting exploding in the wake of the 2018 Supreme Court ruling that struck down the 1992 Professional and Amateur Sports Protection Act (PASPA), the U.S. industry is now worth billions. However, critics argue that many operators are playing a dangerous game. As watchdogs raise the alarm on addiction and suicidality, lawmakers face a high-stakes standoff: rein in the industry or risk letting it spiral.

Regulation roulette begins

The Guardian’s 15 April report details several examples of gambling companies pressuring regulators to weaken or abandon proposed consumer protections.

In Arizona, DraftKings Inc. pushed back against a rule stating that bonuses labelled “free” must involve no player deposit. DraftKings argued it was “industry standard to promote free play to accompany a player’s deposit.” The Arizona Department of Gaming ultimately agreed. The final regulation requires disclosure of terms and conditions...[Read More]