Tomorrow, Americans will celebrate their independence from Great Britain. However, in terms of protecting individuals who may be harmed by certain actions, the UK is ahead of the US. British regulators have shown a willingness and capability to hold sportsbooks accountable for failing to stop wagers made under suspicious circumstances.
In a recent case highlighted by Tom Bergin of Reuters, Flutter, the parent company of FanDuel, had to pay $2.8 million for allowing bets to continue from a director of an animal shelter who was embezzling money. This individual lost over $500,000 in bets over four years. Flutter CEO Peter Jackson issued an apology for not halting the bets and acknowledged the company’s duty to act when customers display signs of problem gambling.
In contrast, in the US, companies like FanDuel and DraftKings remained silent and continued to accept bets from individuals like former Jaguars executive Amit Patel, who stole and gambled away millions. One concerning area is the treatment of VIP customers, who are often high spenders but may also be at risk of developing gambling problems.
Former BetMGM VIP manager Josh Giaramita pointed out the fine line between VIPs and those with gambling issues. There is also a lack of measures in place to prevent individuals who are prohibited from betting, such as NFL players or officials, from placing bets. It is suggested that sportsbooks should have mechanisms to block such individuals from gambling on events they are involved in.
It is hoped that these issues will be addressed promptly, either by sportsbooks voluntarily implementing fair and responsible practices or by government regulations requiring them to do so. The focus should be on protecting problem gamblers, preventing theft, and ensuring that those who should not be gambling are not given the opportunity to do so.