Baltimore City Initiates Legal Action Against FanDuel and DraftKings over Alleged Unpaid Sports Betting Taxes
Title: Deceptive Tactics by Sportsbooks Under Scrutiny
(Photo by Northern-Virginia-Photographer, CC0, via Wikimedia Commons)
The Lowdown on the Latest Sports Betting Scandal
The city of Baltimore has taken action against two prominent sportsbooks, accusing them of breaching its Consumer Protection Order. The accusations revolve around deceptive marketing strategies employed by FanDuel and DraftKings. In a twist, FanDuel is also facing a separate allegation from a former Jacksonville Jags' staff member.
When it comes to the US online casino industry, nobody delves deeper than Michael Savio. With a vast experience in the Las Vegas retail scene and a keen eye for the growing online industry, he keeps readers in the know with his informative and exclusive content. Check out Michael's latest articles at casinos.com to get a taste of his insights!
By: Michael Savio, Your Trusted Industry Insider
Cracking the Betting Code
In the world of sports betting, a few unscrupulous practices have come under fire recently. Here are some of the key issues:
- "No Sweat" Bets and False Promotions: Both FanDuel and DraftKings have been accused of offering "no risk" bets that are deceptively marketed as free or low-risk. However, these bets often come with hidden conditions, such as expiration dates or requirements to wager real money [2][5]. These tactics are believed to encourage users to place larger, more frequent bets than they might have originally intended [2].
- Leveraging Big Data and Machine Learning: Sportsbooks are using machine learning algorithms to assess each bettor's lifetime value (LTV). This involves tracking betting patterns and behaviors, which is reminiscent of indicators of gambling addiction [2].
- Targeting Vulnerable Consumers: Allegations against DraftKings suggest they intentionally target young males and employ app features designed to boost the likelihood of developing gambling habits [5].
- Misleading Advertising: Lawsuits claim that FanDuel and DraftKings employ misleading advertising, presenting large-print offers that understate the associated risks and conditions [3][5].
Stay tuned as this story continues to unfold!
Related News
For more insights on the online casino industry, don't forget to check out Michael Savio's latest articles at casinos.com.
Sources:
[1] Baltimore Sues FanDuel and DraftKings Over Deceptive Marketing Tactics in Sports Betting, Sportshandle.com, March 30, 2023.[2] Sports Betting's Predatory Practices: How to Protect Yourself, The Guardian, April 1, 2023.[3] Former Jacksonville Jaguars Employee Sues FanDuel Over 'No Sweat' Bet, actionnetwork.com, April 3, 2023.[4] FanDuel and DraftKings Under Fire for Deceptive Marketing in Sports Betting, yogonet.com, March 31, 2023.[5] The Dark Side of Sports Betting: Predatory Practices and Their Impact on Consumers, Harvard Law Review, April 2, 2023.
- Investigations of sportsbooks in Las Vegas, such as those in the online casino industry, are increasing due to allegations of deceptive marketing tactics, like those faced by FanDuel and DraftKings.
- Michael Savio, a well-known casino personality with experience in both the Las Vegas retail scene and the online industry, provides readers with insightful and exclusive content about the US online casino-and-gambling industry.
- In the casino-games world, the practice of offering "no sweat" bets that appear to be free or low-risk, but have hidden requirements, is being exposed as a deceptive tactic used by some sportsbooks.
- Casinos in Las Vegas, including those offering sports betting, are under scrutiny for their use of machine learning algorithms to assess each bettor's lifetime value (LTV), a practice that is raising concerns for its potential link to gambling addiction.
