We’re releasing our monthly problem gambling news update a little earlier than usual, because with just two days of the month in the books (at press) there is already a lot going on that could reverberate across the country. In fact, the final fiscal quarter of 2024 may be very telling in regards to the state of online sports betting in the USA for 2025 and beyond. Read ahead to learn more.
October 2024 News Regarding Problem Gambling and Sports Betting that America Needs to Know About
Former Jacksonville Jags Employee Sues DFS Operator
Less than a year ago in a feature on gambling theft at a corporate level, we reported on former Jacksonville Jaguars executive, Amit Patel, who admitted to (and was subsequently convicted of) embezzling an estimated $22 million from the Jaguars to fund his addiction to Daily Fantasy Sports (DFS). While it’s a contentious topic, many elements of DFS mirror sports betting which can be problematic for those who have a vulnerability to developing gambling disorder. Patel is making such as case, so earnestly in fact that he is taking one of the DFS platforms that collected a large portion of this $21,780,000 in wagers to court. Patel is suing the operator and claiming that they purposely ignored their own protocols for responsible gambling and anti-money laundering. He is asking for $250 million in compensatory and punitive damages which can go a long way in the prison commissary as he serves out his six-and-a-half year sentence.
Rest assured that every stakeholder in the industry will watch this case closely. If Patel wins, it could set a precedent to shake up the entire map of U.S. states offering legal sports betting.
Sports Betting Ads in NY to Require Warning About Gambling Addiction
On October 1 (2024) New York Governor Kathy Hochul signed into law a requirement that ads for mobile sports betting (and DFS) must now carry messaging about the potentially addictive effects of online gambling. Given that sports betting advertising regulation has failed to protect vulnerable Americans, namely our nation’s youth, NY’s move is a step in the right direction. Will other regulated U.S. states take note and follow suit?
Surplus Gambling Revenue Proposed to Conserve Water in Colorado?
In a previous article on how Colorado serves as a model of effective problem gambling support that other U.S. states could benefit from emulating, we addressed how a significant portion of gambling tax revenue would go towards addressing the impacts of gambling on residents. As it stands now, there is a 10 percent tax on casinos’ sports betting proceeds up to $29 million a year. A portion of these tax collections cover a cost to regulate sports gambling and provide for related mental/behavioral health programs. Any remaining balance (under the $29 million) is currently directed to the Colorado Water Conservation Board for various water projects.
The issue, as everyone but gambling operators likely see it, is that forecasted tax collections exceed $36 million, which is well beyond the $29 million cap. If the cap is not lifted, the state must return excess tax collections to sports betting operators. As of October 2 (2024) a proposal has been made to remove the cap. The proposition would allow all surplus sports betting tax revenue to pour right into water conservation projects. Perhaps state lawmakers could consider allocating some of this excess towards even greater problem gambling support? After all, the excess is the direct result of undervalued demand for sports betting, and so there may be a proportionate rise in problem gambling. The latter is evidenced in country-wide increases in helpline calls from those who are struggling with compulsive gambling behavior.
Stay tuned for more as stories develop.
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