Submission Type

Presentation

Submission Title

Consumer Protection in the New Era of Sports Betting

Session Title

Session 2-1-C: Gambling Innovation in Policy

Location

Caesars Palace, Las Vegas, Nevada

Start Date

29-5-2019 9:00 AM

End Date

29-5-2019 10:25 AM

Disciplines

Consumer Protection Law | Law

Abstract

When the U.S. Supreme Court held, in the case Murphy v. National Collegiate Athletic Association, that the Professional and Amateur Sports Protection Act violated the 10th Amendment of the U.S. Constitution, it freed all states to pass statutes legalizing sports gambling within their borders. Multiple states have already either legalized sports betting or passed legislation that would do so, with many other states considering it. Opening the flood gates to legalizing sports betting should require the states (or even the federal government) to analyze what consumer protection should be included in any sports betting legislation, especially as states move to Internet sports gambling. This presentation will discuss consumer protection in sports gambling, designed to protect recreational gamblers, and compare it to harm minimization, designed to aid problem gamblers.

Consumer protection in sports gambling is a complex topic, as it involves the integrity of the underlying sports, wager integrity ensuring that winnings are paid out appropriately, and transparency of the gambling opportunities offered and of the complaint process and adjudication of disputes. Sports gamblers should not be tricked by deceptive marketing techniques. And consumer protection should be designed in coordination with harm minimization techniques to reduce the effects of problem gambling. Unfortunately, gaming commissions at times seem more focused on protecting gaming businesses than consumers. Currently, some sports leagues are proposing that they be paid “integrity fees” or a royalty for the use of their games as the subject matter for legalized sports gambling. Doing so could actually threaten the integrity of the leagues, as they become directly entwined with the profits of betting on their own games. This presentation will discuss these issues and proposals for reform.

Keywords

Gambling, Sports Betting, Consumer Protection

Author Bio

Kurt Eggert is a Professor of Law at Chapman University Fowler School of Law, where he is the Director of the Alona Cortese Elder Law Center. His scholarship has focused on consumer protection, gambling law, predatory lending, and elder abuse. He has testified to Congress multiple times on gambling issues, including Internet gambling and Internet poker, on predatory lending issues, and on mortgage securitization. He was a member of the Federal Reserve Board's Consumer Advisory Council advising the Fed on consumer finance issues, where he chaired the subcommittee on Consumer Credit.

Funding Sources

No funding sources relevant to this presentation

Competing Interests

No financial or non-financial interests related to this presentation

Comments

I attempted to submit this yesterday, so please excuse this if it is a redundant submission. Thanks!

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May 29th, 9:00 AM May 29th, 10:25 AM

Consumer Protection in the New Era of Sports Betting

Caesars Palace, Las Vegas, Nevada

When the U.S. Supreme Court held, in the case Murphy v. National Collegiate Athletic Association, that the Professional and Amateur Sports Protection Act violated the 10th Amendment of the U.S. Constitution, it freed all states to pass statutes legalizing sports gambling within their borders. Multiple states have already either legalized sports betting or passed legislation that would do so, with many other states considering it. Opening the flood gates to legalizing sports betting should require the states (or even the federal government) to analyze what consumer protection should be included in any sports betting legislation, especially as states move to Internet sports gambling. This presentation will discuss consumer protection in sports gambling, designed to protect recreational gamblers, and compare it to harm minimization, designed to aid problem gamblers.

Consumer protection in sports gambling is a complex topic, as it involves the integrity of the underlying sports, wager integrity ensuring that winnings are paid out appropriately, and transparency of the gambling opportunities offered and of the complaint process and adjudication of disputes. Sports gamblers should not be tricked by deceptive marketing techniques. And consumer protection should be designed in coordination with harm minimization techniques to reduce the effects of problem gambling. Unfortunately, gaming commissions at times seem more focused on protecting gaming businesses than consumers. Currently, some sports leagues are proposing that they be paid “integrity fees” or a royalty for the use of their games as the subject matter for legalized sports gambling. Doing so could actually threaten the integrity of the leagues, as they become directly entwined with the profits of betting on their own games. This presentation will discuss these issues and proposals for reform.