In response to the growing sports betting industry and its impact on fan engagement, seven of the largest U.S. sportsbooks have formed a trade group called the Responsible Online Gaming Association. The goal of this association is to promote responsible gambling by sharing best practices and information about customers who have been banned from their platforms due to problematic betting behaviors.
The American Gaming Association reports that Americans legally wagered nearly $120 billion on sports in 2023, a significant increase of 28% from the previous year. This rise in sports betting is also impacting fan engagement, with people watching games until the end to see if they win money or lose it. However, as Major League Baseball and the NBA investigate high-profile betting scandals involving athletes, there is increasing concern about the negative impact of irresponsible gambling and addiction on both athletes and consumers.
Kenneth Shropshire, a sports business expert at Wharton, emphasizes the importance of addressing these issues to enhance consumer confidence in the industry. He notes that while some sportsbooks participating in the trade alliance may be aiming to promote responsible gambling, their main goal is to maximize revenue. By implementing internal rules, they may be seeking to preempt stricter regulations from state governments. Through this partnership, these companies are walking a fine line between profitability and ethical responsibility.
Economist Victor Matheson from the College of the Holy Cross also highlights this dilemma faced by these companies. While they seek to promote responsible gambling through their trade alliance, their primary focus is on generating revenue for themselves. As such, their efforts may be seen as an attempt to avoid stricter regulations that could negatively impact their bottom line.
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