Documents obtained through a freedom of information request have exposed attempts by one of the United States’ largest online gambling operators to weaken rules aimed at protecting young and vulnerable individuals and addressing problem gambling.

FanDuel, owned by the Dublin-based gambling giant Flutter Entertainment, allegedly lobbied against a proposed ban on specific words and phrases that could attract potential problem gamblers to their platforms.

Problem-Gambling Advocates Slam “Industry Hypocrisy”

New York, the nation’s largest gambling market with over $2.1 billion wagered last month, has become a battleground for operators seeking dominance in the lucrative industry since the legalization surge following the US Supreme Court’s 2018 decision.

The documents reveal FanDuel’s objections to proposed sports-betting advertising rules, particularly opposing restrictions on ads near college campuses where the legal age for gambling is 21. The company argued against a ban on using certain keywords to attract potential problem gamblers, claiming the rule was impractical and subjective, as reported by The Guardian.

Advocates for greater problem-gambling support expressed concern over the apparent hypocrisy of gambling companies that initially supported regulations before legalization but now seem intent on weakening them. 

Brianne Doura-Schawohl, a problem gambling lobbyist, stated that the industry is using responsible gambling practices to legalize markets but attempts to overturn regulations when influencing them.

FanDuel Calls Rules Subjective and Impractical in Real World Environment

FanDuel, which has not commented yet, has previously declared its commitment to player protection and promoting healthy gambling habits.

However, in a memo dated September 27, the New York State Gaming Commission’s general counsel, Edmund Burns, outlined FanDuel’s objections to rules prohibiting the use of keywords to attract potential problem gamblers. The company argued that the rule was subjective and impractical, likening it to a liquor store not being able to advertise to potential alcoholics.

Another contentious point was FanDuel’s objection to a ban on advertising near college campuses, arguing that the language was vague and could include unaffiliated residential and commercial areas nearby. The commission’s staff defended the ban, citing the need to prevent predatory marketing from reaching underage students.

The documents also revealed objections to rules for the fantasy sports market, with FanDuel opposing measures holding operators strictly liable for allowing prohibited individuals, such as minors, to use their platforms. The company also sought the removal of a rule requiring compulsive-gambling assistance messages in advertisements.

These revelations have sparked concerns among advocates and industry observers, highlighting the need for continued scrutiny and regulation to ensure the protection of consumers, particularly those vulnerable to problem gambling.

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CDC Gaming Reports correspondent Buck Wargo attended the event, which reunited 600 people from the industry, interested in improving security on-site casinos and protecting against scams and cyber fraud.

Conference Highlights Ongoing Challenge in Containing Casino Scams

The conference confirmed that casinos face new sets of challenges and that the pandemic had led to a decline in the number of cheating at casinos. However, as the industry emerges from the worst of the pandemic, dangers continue to mount.

Willy Allison, the founder of the World Game Protection Conference, noted that there had been a correlation between the increase in casino revenue and the level of cheating detected and conducted on casino floors. While the industry faces cyber threats as a whole, the conference itself focused on the cheating attempts carried out in person by people on casino floors.

One of the biggest scandals caught in 2022 was “dice sliding,” Allison said cited by Wargo who attended in person and did the full original report of the story. Sliding a dice is basically a practice where the person tries not to roll the dice and just leaves them with the face value pointing up so that they can get the desired outcome.

Casino security and staff have been on high alert and received training on how to spot such players. “Dice sliders are coming out of the woodwork, “Allison explained. A big part of the scams though involve people distracting the dealers who are by default capable of spotting such offenses but may be misled by players.

Some of the criminals are in fact, former casino workers. One prominent case involves an ex-casino dealer who used his skeleton key for electronic table games (EGTs) to bet and then reset any loss they might have incurred by using the key. EGTs are particularly vulnerable to manipulation as well.

Or, rather – once a scam is perpetrated it’s harder to spot it. This mostly stems from the fact that there are fewer eyeballs on EGTs as they should be sound and safe of design, notwithstanding manipulations done to their software or using skeleton keys as in the previous case.

Casinos Bleed Cash Due to Cheating and Scams

“Scammers who want to fiddle or put USB ports in and mess with the electronics are left to their own devices,” cautions Allison. While these scams continue to be perpetrated – despite the risks for those carrying them out – casinos are bleeding money that could have otherwise bolstered their bottom lines and gone into the staff and betterment of operations.

Industry insiders confirm that scams cost them a lot of money, as many scams certainly go undetected, many executives worry. Casinos have been readily employing experienced “cheats” themselves, such as card counters to help them counter many popular forms of cheating as well. The challenges piling on for the sector continue to abound, though, as footfall returns to casino floors.

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