US Appeals Court to Hear Case Alleging BetMGM Enabled Gambling Addict
The US Third Circuit Court of Appeals is preparing to hear a high-profile case that has drawn attention to the responsibilities of online gambling operators toward their patrons. BetMGM will have to once again show how its policies don't conflict with responsible gambling regulations.
The BetMGM sportsbook logo outside one of its venues. (Source: Getty Images)
The case involves Sam A. Antar, a self-proclaimed compulsive gambler who filed a lawsuit against BetMGM, alleging the online casino platform enabled and exploited his gambling addiction, leading to losses amounting to tens of millions of dollars. Oral arguments are scheduled for December 10 in the Albert Branson Maris Courtroom in Philadelphia, with each side allotted 15 minutes to present their positions.
Central to the court's review are specific legal questions, including the interpretation of the New Jersey Consumer Fraud Act. Attorneys are expected to address whether claims under this act require evidence of a misstatement or deceit and how the term "unconscionable" is defined within the statute.
Additional points of contention include whether Antar sufficiently demonstrated a measurable financial loss, such as out-of-pocket expenses or a deprivation of benefits from his transactions with BetMGM. The court has asked both parties to clarify whether Antar received the agreed-upon value from his gambling experience and, if not, to specify what evidence would be required to support his claims.
The case stems from a January ruling in which a US District Court judge dismissed Antar's lawsuit. Antar alleged that despite BetMGM's awareness of his severe gambling problem, the company enticed him with substantial casino bonuses to continue wagering on its online platform. He claimed to have risked nearly $30 million over a nine-month period between 2019 and 2020,.
However, the court determined that the Consumer Fraud Act was not applicable in this context, as it was superseded by New Jersey's Casino Control Act. The judge concluded that casinos are not legally obligated to prevent or deter compulsive gamblers from participating in their services unless expressly required by law.
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Casino Control Act Not a Factor
The Casino Control Act, according to the ruling, does not impose duties on gambling operators to intervene in cases of compulsive gambling behavior or restrict the use of targeted incentives. The court noted that if the legislature had intended to impose such obligations, it would have explicitly amended the law to reflect this.
Despite these findings, Antar's legal team argues that the Casino Control Act has not kept pace with the rise of online gambling and needs to be updated to address the unique challenges posed by digital platforms. Antar's attorney, Matthew Litt, contends that the current legal framework, designed for traditional brick-and-mortar casinos, is outdated and inadequate for regulating modern gambling operations.
Antar has publicly expressed his belief that his legal battle is already influencing how casinos and gambling platforms operate. He has criticized operators for exploiting advanced analytics to target individuals with gambling addictions, describing it as crossing an ethical boundary. While acknowledging that gambling businesses provide entertainment, he argued that their practices become predatory when they disproportionately focus on individuals struggling with compulsive behaviors.
The case also carries personal significance for Antar, whose family legacy includes the "Crazy Eddie" consumer electronics empire. Founded in 1971, the chain became a household name through aggressive marketing and rapid expansion. However, the company's success was overshadowed by federal investigations into its business practices, ultimately leading to fraud charges against its co-founders.
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