Seven of the largest sportsbook in United States are launching trade group to promote responsible gambling. This includes FanDuel and DraftKings. Members of the Responsible Online Gaming Association will share best practices and the names of customers who have been banned from their platforms for problematic online sports betting.
All this comes as Major League Baseball and NBA each investigate high-profile betting scandals involving athletes.
In the past year, Americans legally wagered nearly $120 billion on sports. This is according to the American Gaming Association. That is up 28% from the year before.
As per Kenneth Shrosphire, the rise of online sports betting is also driving fan engagement. Shrosphire studies the business of sports at Wharton.
He said that people are watching games to the finish to make sure they win their money or to see their money fly away. However, he also stated that leagues and sportsbooks have to manage perceptions around irresponsible gambling and addiction. This also includes athlete betting scandals that can cheapen sports.
Shropshire said that here they have the enterprises themselves coming together and saying ‘How can we provide consumer confidence?'”
Victor Matheson is an economist at the College of the Holy Cross. He said that the companies participating in this trade alliance are walking a tricky line.
Matheson also said that they are trying to get as much revenue as possible, and the way this can be done is by getting people to gamble a lot.
It was also noted by him that the sportsbooks could be making internal rules to head off stricter regulations from state governments.