Regulators have accused leading U.S. sports betting firms of encouraging gamblers to chase losses. They claim the firms reward high spenders with betting credits, bonuses, gifts, and trips.
Gambling giants told a prominent U.S. senator last year that they did not design their VIP programs to encourage recurring bettors to wager more. The Guardian obtained letters supporting their claim. Nevertheless, problem gambling advocates are skeptical.
One operator published job advertisements stating that VIP hosts must encourage gamblers to spend on their platform. Two job postings The Guardian reviewed show that DraftKings expects hosts to exceed engagement and service level targets. Hosts are also expected to help reactivate inactive users.
DraftKings failed to comment on the adverts. Yet, the firm modified two ads to remove these expectations shortly after The Guardian reached out.
Cait Huble of the National Council on Problem Gambling said VIP hosts seem financially motivated to keep high-value players engaged. She added that this creates a conflict with identifying, addressing responsible gambling behaviors adn problem gambling.
Huble said the retention tactics they’re seeing may contradict operators’ claims. Operators insist they did not design their VIP programs to encourage frequent bettors to wager more. It definitely seems like there’s some encouragement around chasing losses, which is a huge factor of problematic play.
A lot of lawmakers on Capitol Hill have grown increasingly concerned by the methods of the industry. The Democratic senator of Connecticut, Richard Blumenthal said that sports betting companies make a paltry pretense of stopping gambling addiction. They’re failing to address the national gambling addiction crisis, because their profits take priority over people.
Blumenthal, who has proposed a federal crackdown, said current regulations are failing. He added that state-level rules are falling woefully short.
