• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Largest U.S. sportsbooks join forces to tackle problem gambling
Editor's Pick

Largest U.S. sportsbooks join forces to tackle problem gambling

by March 28, 2024
by March 28, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

Seven of the nation’s largest gaming companies are joining forces to create a trade group to promote responsible gaming, and for the first time ever, will share information about problem gamblers.

The seven operators — FanDuel, DraftKings, BetMGM, Penn Entertainment, Fanatics Betting & Gaming, Hard Rock Digital and bet365 — will form the Responsible Online Gaming Association, or ROGA, the group announced Wednesday.

The members account for more than 85% of the legal online betting market in the United States. Collectively they have pledged more than $20 million to fund ROGA.

“I’m incredibly excited to move this forward and to really do some impactful things and to really expand the knowledge through the research and to create these evidence-based best practices and to really empower players with information,” said Jennifer Shatley, executive director of ROGA.

ROGA members commit to work together on issues ranging from education, responsible gaming best practices, conscientious advertising and marketing across the industry.

The new group will also create an independent clearinghouse, or database, that will allow them to share key information related to protection of consumers, though the details on how it would work aren’t yet clear.

ROGA says it will create a certification program to assess members’ responsible gaming efforts and provide an incentive for operators to participate.

The new consortium comes as sports betting, both online and in retail outlets, has seen dramatic growth across the nation since 2018. Thirty-eight states and Washington, D.C., now offer legal sports wagering.

This year, a record number of Americans bet on the Super Bowl. Online transactions totaled nearly 15,000 per second, doubling last year’s peak, according to geolocating platform GeoComply.

But as gambling has become more mainstream — and as advertising for sportsbooks spans television, streaming and social feeds — so, too, have headlines involving betting scandals and sports.

In recent days, Los Angeles Dodgers superstar Shohei Ohtani has found himself at the center of a $4 million betting scandal involving his interpreter and an illegal bookie. Ohtani insists he’s never bet on sports. The NBA is investigating Toronto Raptors player Jontay Porter for irregularities around wagering. And U.S. Integrity, a tech firm working to combat illicit betting in college sports, flagged anomalies around the betting lines for Temple University men’s basketball games.

A result of those claims: The potential to provoke outrage and public criticism that could become an inflection point for the U.S. gambling industry. There’s also the potential for gambling’s explosive growth to undermine integrity in sports and entice bettors into addiction.

An estimated 2 million U.S. adults meet the criteria for a severe gambling problem, according to the National Council on Problem Gambling. Another 5 million to 8 million U.S. adults are considered to have a mild or moderate gambling problem.

Problem gambling prompted regulatory crackdowns in Europe and especially in the United Kingdom over the last couple years, impacting sportsbooks’ profitability and changing the way they conduct business.

There has been a concerted effort in the United States for the gambling industry to police itself and ward off harsher regulatory frameworks.

U.S. Rep. Paul Tonko of New York is introducing national legislation that would crack down on what he calls “a public health crisis.” Tonko’s “Supporting Affordability and Fairness with Every Bet Act,” which he introduced last week, would regulate gambling advertising, limit the number and size of deposits, and restrict how artificial intelligence is deployed to acquire customers.

“Your going to have a lot more people saturated with this opportunity, with all these clever concepts of bonus bets, free bets and celebrity spokespersons,” Tonko told CNBC.

An influx of gamblers will result in a dramatic increase in the number of people struggling with addiction, he said.

Some states have slapped operators with fines over gaming violations. In August, Maryland fined DraftKings $94,000 for marketing to underage players. PrizePicks reached a $15 million settlement in New York for operating illegally. In Indiana, the gaming commission fined FanDuel after eight people used illegally obtained debit cards to fund their betting accounts, causing “great harm” to partners on shared bank accounts, according to the Indiana Gaming Commission Chairman Milton Thompson.

Some gambling insiders are skeptical of ROGA, suspicious of what they consider a marketing stunt to address a public relations problem.

Caesars, which is noticeably absent from the group founding ROGA, told CNBC it’s learned best practices from 35 years grappling with responsible gaming.

“While we applaud all efforts to ensure online gaming is both operated and marketed in a responsible manner, we are confident in our [own] Responsible Gaming approach,” the company said in a statement.

Caesars said it’s solely focused on the 21-and-older crowd and does not permit anyone younger than that to sign up for a Caesars rewards account, even in states like Rhode Island or Kentucky where 18-year-olds are permitted to wager.

Many fantasy sports and social betting platforms that operate on a sweepstakes model permit players 18 and older, and many of Caesars’ competitors allow 18-and-up customers to play fantasy sports. Some, too, allow sports betting in that age group in the few states that permit it.

But the industry is working to better insulate its youngest and most vulnerable customers.

The American Gaming Association launched last March an agreement aimed at providing college-aged students protections against the marketing and advertising of sports betting.

Peter Jackson, CEO of Flutter, the parent company of FanDuel, said responsible gaming comes down to good business. Yet, he warns that as legal operators come together to improve responsible gambling, the illegal marketplace will always be willing to take wagers from problem gamblers.

“I urge the state regulators to help us by clamping down on some of those black market operators,” Jackson told CNBC.

This post appeared first on NBC NEWS
You Might Also Like
  • Disney raises streaming prices for Hulu, Disney+ and ESPN+
  • Inflation cooled to 5% in March, but consumer pain is set to linger
  • Cellular IoT Module Market Update
  • Job growth totals 253,000 in April, beating expectations even as the U.S. economy slows
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Sam Bankman-Fried to learn fate today for orchestrating historic FTX crypto fraud scheme
next post
Market Research and Analysis – Part 3: Market Trend Analysis

You may also like

MGM Resorts reaches labor deal with Las Vegas unions, averts...

November 10, 2023

Etsy CEO says company is escaping ‘race to the bottom’...

July 10, 2024

MrBeast sues his food delivery partner over ‘low quality’ food

August 1, 2023

The 30-year mortgage rate hits 7.48%, the highest level since...

August 22, 2023

Auto insurance rates are jumping the most since the 1970s,...

May 25, 2024

Boeing machinists reject new labor contract, extending strike

October 25, 2024

Antiwork trends like ‘lazy girl jobs’ show how young people...

August 3, 2023

What is Observability and Why is it Important?

December 28, 2022

CNN names former New York Times CEO Mark Thompson as...

August 31, 2023

Sequans and Thales Partner to Deliver the First Integrated SIM...

February 23, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,185 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    New Hampshire city gears up to...

    December 18, 2023

    Grubhub lays off 15% of corporate...

    June 14, 2023

    Wayfair to open its first large...

    May 18, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here