#United States #N/A #Gambling Reform #Online Gambling #WHO

Projected Growth in US Online Gambling Losses

Recent estimates from the World Health Organization (WHO) indicate that the global market for legal online gambling is anticipated to reach an annual value of $700 billion by 2028. Alongside this growth, a report commissioned by the Campaign for Fairer Gambling (CFG) has revealed that the illegal online gambling market in the U.S. alone was already valued at over $40 billion in 2023. This troubling trend suggests that American consumers and the broader economy could face losses of at least $1 trillion due to online gambling activities by 2028.

Derek Webb, founder of CFG, expressed significant concerns regarding this projected loss trajectory. He emphasized that the WHO's findings strengthen the case for potential legal accountability, particularly relating to class action lawsuits based on jurisdictional duty of care liabilities against legalized online gambling operators. He noted that such litigation could intensify, especially for companies whose marketing practices might push consumers beyond their financial limits.

Historically, the concept of 'Duty of Care' in the context of gambling has not been effectively applied in litigation against operators. However, cases like DraftKings, which faces allegations of encouraging addictive gambling behaviors, underscore the pressing need for accountability in the sector. Operators frequently attract new users through sign-up bonuses and promotions that not only lure novices into gambling but also heighten the risk of addiction among casual participants.

Studies utilizing the Total Consumption Model have shown that as gambling consumption rises on a societal level, individual harm also increases. The intersection of legal and illegal gambling activities compounds this issue, resulting in higher overall consumption and subsequent harm.

To address these concerns, the WHO stresses the necessity of comprehensive public health policies focused on mitigating gambling-related harm. Among their recommendations is the cessation of gambling advertising and sponsorships related to sports and cultural events. Despite some efforts, such as cease and desist letters issued by state attorneys general to illegal online operators like Bovada, which is licensed in Curacao, enforcement remains inconsistent. If one illegal site exits a market, others are quick to fill the gaps left by insufficient federal oversight.

Webb further cautioned that states endorsing tax incentives for gambling operations need to carefully evaluate the potential risk of litigation they may be inviting. He asserted that a continued reliance on promoting responsible gambling policies merely shifts the responsibility of harm prevention onto individuals rather than addressing the root structural issues identified by health authorities. Misleading narratives that suggest legalization as a viable solution for reducing addiction or curtailing illegal operations could prove to be both ineffective and dangerous.

About the Campaign for Fairer Gambling (CFG)

The Campaign for Fairer Gambling operates as an independent organization advocating for gambling reform in both the U.K. and U.S. Their mission focuses on promoting fair gambling through evidence-based research and advocacy, aiming to furnish policymakers with accurate data and insights necessary for constructing informed debates around gambling policies. For additional information, visit their website at fairergambling.com or follow their updates on social media.