U.S. Senator Richard Blumenthal of Connecticut recently wrote to eight major sports betting companies demanding they help customers who may have problem gambling issues instead of urging them to continue to place wagers.
Targeting FanDuel, DraftKings, MGMBet, ESPNBet, Fanatics, Caesars, BetFred and Bet365, Blumenthal stated, “Rather than leveraging data collected on users to identify those who may be gambling beyond their means, and then intervening to help, gambling companies instead use this data to entice frequent gamblers, including problem gamblers, to continue placing bets.”
Blumenthal noted these major sports betting websites assign VIP Hosts to frequent bettors, providing them with promotions and credits to urge them to continue gambling, “often at their own financial peril.”
Citing a Wall Street Journal investigation, Blumenthal wrote, “Betting is known to be a highly addictive activity, and cognitive distortion can often take place within people who have lost large amounts of money due to gambling. This leads to a dangerous habit of ‘chasing losses,’ or trying to recoup money lost by placing more bets.”
The WSJ report featured a psychiatrist with problem gambling issues who was frequently encouraged by operators’ VIP reps to spend more. Blumenthal called such practices “abusive.”
In January, Blumenthal also sponsored the Gambling Addiction Recovery, Investment and Treatment Act, which would direct half of gaming tax revenue to addiction research and treatment. He noted the National Council on Problem Gambling estimated about 9 million American adults suffer from gambling addiction, costing society $14 billion annually. But unlike alcohol, tobacco and drug addiction, currently no federal funds support problem gambling services in the U.S.
In response, recently FanDuel, DraftKings, BetMGM, Penn Entertainment, Fanatics Betting and Gaming, Hard Rock Digital and Bet365 pledged more than $20 million to the Responsible Online Gaming Association (ROGA), a new trade association designed to promote responsible gaming practices.
ROGA will be overseen by Dr. Jennifer Shatley, president of the Nevada Council on Problem Gambling. Similarly, last year Better Collective, Catena Media, Gambling.com Group, Oddschecker Global Media, Spotlight Sports Group and XLMedia formed the Responsible Gambling Affiliate Association.
