In recent developments, seven of the largest U.S. sportsbooks, including FanDuel and DraftKings, are forming a trade group called the Responsible Online Gaming Association with the goal of promoting responsible gambling. This new association will involve sharing best practices and information about customers who have been banned from their platforms due to problematic betting behaviors.
The rise of sports betting is also impacting fan engagement, with people watching games until the end to see if they win money or lose it. According to the American Gaming Association, Americans legally wagered nearly $120 billion on sports in 2023, a significant increase of 28% from the previous year.
Sports business expert Kenneth Shropshire at Wharton highlighted the importance of addressing perceptions surrounding irresponsible gambling and addiction, as well as athlete betting scandals that can tarnish the integrity of sports. The formation of the Responsible Online Gaming Association is an effort to enhance consumer confidence in the industry.
However, economist Victor Matheson from the College of the Holy Cross pointed out that while the sportsbooks participating in the trade alliance are 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.