Problems At Offshore Sportsbooks Underscore Need For MA Law

Users of Bovada, a prominent offshore sportsbook, are increasingly voicing concerns regarding stability. These complaints encompass a wide range of issues, including site crashes, freezes, and the unfortunate loss of bets and funds. The occurrence of such technical problems at offshore sportsbooks serves as a stark reminder of the necessity for legal sports betting in Massachusetts.

A sports betting bill in Massachusetts appears to be nearing approval by lawmakers, aiming to provide enhanced safeguards for gamblers within the state.

Instances of the website being down have also been observed on offshore platforms such as isitdownrightnow.com. These irregularities have primarily occurred during the final week of May.

Confusion hurts MA sports bettors

The main concern for Massachusetts bettors lies in the uncertain legal status of online sportsbooks. A study conducted by the American Gaming Association (AGA) between 2019 and 2020 revealed that 74% of bettors consider it crucial to utilize legal sportsbooks. Surprisingly, despite this belief, 55% of these bettors still opt for offshore books under the misconception that their actions are within legal boundaries.

Howard Stutz of the Nevada Independent stated that American consumers have been bewildered by websites that operate without supervision from any state gaming regulatory body and evade paying US taxes.

Offshore sportsbooks have minimal restrictions in place regarding their advertising practices and how they appeal to bettors. For instance, when visiting the main page of a site like Bovada, it may give the impression of being a legitimate platform. However, there is no mention anywhere on the site about the lack of protection for user accounts and funds. It is only when issues like site outages and technical difficulties occur that bettors realize their money is at risk.

The number of offshore sportsbooks continues to rise, adding to the existing confusion. Additionally, despite their seemingly legitimate appearance, these platforms provide minimal protection and benefits to bettors.

As an illustration, Bovada presents a self-exclusion option to its users. This serves as a fundamental measure for individuals seeking to control their betting habits. However, the assistance provided on the linked page of Bovada is limited, with only brief and concise information provided.

If you believe it is necessary to take a break, kindly reach out to us, and we will disable your account. In case you suspect having a gambling issue, please inform us during your contact, ensuring that we can permanently disable your account.

There is no provision of contact information or links to reach the relevant site coordinators. Consumers are left to navigate on their own after just one click away from the main page.

The argument for regulation

In 1992, the Professional and Amateur Sports Protection Act (PASPA) was enacted by Congress with the objective of restricting legal sports betting to only a few select states. The primary goal of this legislation was to safeguard consumers from the negative impacts associated with gambling.

In 2018, the Supreme Court struck down PASPA due to its support for an illegal sports gambling market, as highlighted by Eric Meer from the UNLV Gaming Law Journal. Nevertheless, the presence of offshore sportsbooks allowed the shadow economy to persist.

According to previous estimates by the AGA, the offshore industry was valued at $150 billion per year. Interestingly, if major gambling states like Massachusetts do not legalize gaming, this inadvertently leads to further growth in the offshore industry.

Illegal offshore sportsbooks are multiplying rapidly due to their exemption from taxes and regulatory requirements. To counteract this unfair advantage, the most effective solution lies in the establishment of competitive regulated sites.

What protections should bettors expect?

The persistent technical problems experienced by offshore sportsbooks underscore the necessity of implementing legal sports betting in Massachusetts.

In a recent correspondence, the AGA forwarded a letter to US Attorney General Merrick Garland, advocating for the prosecution of illegal offshore sportsbooks. The letter also emphasized essential safeguards that every gambler should anticipate in a legal market. These protections encompass:

• Ensuring fair play and accurate payouts through machine testing.
• Age verification regulations ensure that individuals prove their age in order to access certain services or products.
• The protection of personal and financial data
• The reliability of games using slots, wheels, and drums.
• Official data is used to determine fair odds.
• The incorporation of responsible gaming measures, such as self-exclusion programs and maximum betting limits.

52% of all bettors operate in the unstable offshore landscape, where some illegal offshore sites may provide responsible gambling services on occasion, but mostly to maintain a façade rather than genuinely promote responsible gambling.

Boston-based DraftKings throws weight behind AGA

Griffin Finan, vice president of governmental affairs at DraftKings, a sportsbook company headquartered in Boston, strongly advocates for the regulation of online sports betting. He emphasizes the importance of eliminating illegal gambling practices and transitioning customers to a secure and legally governed platform as a paramount objective for the industry.

Finan incurs twofold costs from states that neglect to regulate the legal gaming industry, which is valued at over $200 billion and has created almost two million jobs.

Significant tax dollars are being lost by states, while customers are left vulnerable and unprotected.

The need for education on offshore betting

The AGA conducted a study and found that 46% of bettors who utilize offshore books express a preference for legal alternatives. It was observed that a significant number of these individuals are uncertain about the legality of the books they currently use.

Massachusetts must prioritize enhancing consumer education regarding the risks associated with illegal sportsbooks, as demonstrated by the recent incidents involving Bovada and similar platforms. Finan aptly summarized the importance of this matter.

It is imperative to address the significant prevalence of illegal sports betting by legalizing, regulating, and imposing taxes on it for the benefit of all.