Gambling firms have fanned out across the US, lobbying an array of state capitals against consumer protections that experts say could help reduce addiction-related harms, according to a non-profit watchdog.
A new report by the Campaign for Accountability, shared with the Guardian, lists a string of proposed regulations – from restrictions on advertising and promotions to deposit limits – against which firms pushed back.
It follows a surge in online gambling since a 2018 ruling by the US supreme court that set the stage for the vast expansion of legalized sports betting, now available in 39 states and Washington DC. Americans placed around $150bn in wagers last year.
The Campaign for Accountability, an advocacy organization, has documented the gambling industry’s lobbying efforts at the state level over recent years against a number of proposed regulations that problem gambling advocates say are aimed at protecting consumers from gambling-related harms.
Some of the efforts have been successful.
In 2022, for example, according to the report, DraftKings pushed back against a proposed rule in Arizona that stated that promotions should only be labeled or described as “free” if they genuinely are. While problem gambling experts have warned such offers can distort the perception of risk for gamblers, the report notes, DraftKings argued that it was “industry standard to promote free play to accompany a player’s deposit” and noted gamblers were required to make a deposit in order to receive the “free” play.
The Arizona department of gaming decided to adopt DraftKings’ suggestion, according to the report. The state law now reads “promotions and/or bonuses described as free shall clearly disclose material facts, terms, and conditions”.
Some states have proposed banning types of wagers that the report claims are “strongly associated with gambling addiction”, such as “in-game bets” – which are odds offered after the event has started and is ongoing.
In Minnesota last year, the Sports Betting Alliance (SBA), an industry group, opposed an amendment to a state sports wagering legalization bill that banned in-game bets, the report states.
Supporters of restricting in-game bets, which are often rapid-fire in nature, say that this type of betting can contribute to problem gambling. The SBA opposed the amendment, arguing, according to CBS and the new report, that half of all bets in the US are in-game wagers and that enacting the bill would significantly reduce the revenues the state was set to collect from sports betting, and described the amendment as “nothing short of a gift to illegal operators”.
The report states that the Minnesota legislature had not passed any bill as of February 2025.
In Virginia, the report states that both Caesars and DraftKings lobbied against a proposed rule in 2021 requiring platforms to include “game designs that promote breaks in play and avoidance of excessive play”.
Caesars argued the language “should be replaced with language indicating that sports betting platforms must incorporate opportunities for players to choose ‘cooling off’”, while DraftKings wrote that the section be removed entirely. “Bettors make bets on different fixed odds wagering events, they do not play ‘games,’” the firm argued, adding that “requirements on designing and screening new games are not applicable.”
The Virginia lottery board dropped the proposed requirements from the final rules, according to the report.
In 2023, the report states that WynnBet, which has since shut down its online sports betting operations, opposed proposed language in Maine that stated that television advertising would not advertise promotions and or bonuses. The company argued that “it is common industry practice to engage with customers through promotional or bonus programs, which are frequently tied to sporting events”.
The National Council on Problem Gambling supported the rule, writing that the “use of promo deductions has often led those in recovery from gambling addiction to relapse”.
But ultimately, the report states, Maine decided to allow such promotions.
In a statement to the Guardian, Michelle Kuppersmith, the executive director at the Campaign for Accountability, argued that the gambling industry, “just like the tobacco industry before it”, must be carefully regulated. Companies’ profits and the addictiveness of their products are “so tightly linked”, she said.
It is “important for lawmakers to understand that implementing consumer protections around online sports betting isn’t just picking winners and losers on a balance sheet”, Kuppersmith added. “With gambling addiction so troublingly linked to suicidality, the lives of their constituents – especially young people – are on the line.”
Some attempts to change or strike proposed regulations have failed.
For example, the report notes that in 2023, several operators asked the Massachusetts gaming commission to amend a rule that included prohibiting them from using sensitive consumer information – such as an individual’s occupation, net worth, debt, income, credit history, status as a recipient of government benefits, medical status or conditions – to promote certain types of promotional offers or wagers, arguing that it would hamper the operator’s essential marketing practices.
The restrictions, DraftKings argued, “would single out sports wagering operators and substantially inhibit their ability to engage in basic analytics and marketing activities that other industries freely engage in”.
The commission, however, did not adopt the companies’ proposed changes, per the report.
That same year, the report states that FanDuel challenged a proposed rule in New York that held gambling operators responsible for misleading language used by their marketing affiliates, and also, as previously reported by the Guardian, opposed a rule aimed at restricting advertising in the areas surrounding college campuses, claiming it was “vague”. According to the report, the state’s gaming commission upheld both original proposals.
In Vermont, both Caesars and FanDuel opposed a rule that granted state regulators the ability to impose caps on promotions, bonuses, or other credits.
Caesars argued that caps were not “typically set by the regulatory body in the jurisdictions in which we currently operate” and FanDuel argued that this would result in state regulators “dictating marketing strategies to sportsbooks, likely resulting in a less attractive offering than can be found in either bordering states or the illegal market”.
Despite the objections, Vermont regulators set the caps, according to the report.
The report notes that DraftKings last year objected to a Maryland regulation prohibiting gambling ads from implying that certain outcomes were “without risk”, arguing that the term “risk” in this context was “overly broad and confusing”. Nevertheless, the Maryland Lottery and Gaming Control Agency upheld the language, the report states.
And similarly, in 2020, the report adds that Penn Entertainment lobbied against a rule in Virginia that stated that ads or promotional materials “may not imply that chances of winning increase the more one participates in, or the more one spends on, sports betting”.
Penn proposed changing “imply” to “guarantee”, but the Virginia lottery board did not adopt the suggestion.
Penn and Caesars did not respond to a request for comment from the Guardian on Monday. Wynn declined to respond, stating that they don’t have any comment on WynnBet’s past operations.
A spokesperson for FanDuel said in a statement: “FanDuel appreciates the invitation state regulators and legislators have provided our representatives to participate in important testimony related to online sports wagering.”
“As a licensed and regulated operator, we believe it’s critically important to support public discourse and the collective efforts to build sustainable long-term frameworks that prioritize customer protection and create equitable business environments that deliver millions of dollars in state tax revenue annually, the hallmark of the legal marketplace,” the spokesperson added.
DraftKings provides “feedback to a variety of stakeholders to help inform legal frameworks that we believe work in the best interest of consumers”, a spokesperson for the firm said. “Well-designed, state-specific sports betting structures offer responsible gaming tools and resources to help consumers play in an informed and responsible manner while providing critical tax revenue for states.”
A spokesperson for the Sports Betting Alliance told the Guardian: “Legal online sports betting is one of the most highly regulated industries in America.”
“The SBA always appreciates invitations and opportunities to share our members’ experience and expertise with elected officials and regulators,” the spokesperson said. “We see firsthand how regulated, law-abiding sports betting operators are put at a severe disadvantage when illegal offshore and unregulated providers are the only entities that are able to offer popular products such as prop bets.”
A spokesperson for the American Gaming Association, a lobby group whose members include most major casino companies, said the legal betting industry is “grounded in responsibility, transparency, and consumer protection”.
“Across the country, more than 5,000 state regulators and policymakers work with licensed operators each day to enforce strong regulatory frameworks and uphold a shared commitment to responsible gaming, as well as efforts to support those experiencing problem gambling,” the spokesperson said. “This includes a wide range of initiatives – from public education campaigns to state-run helplines and funding for research and treatment services for those seeking assistance.”
