Gamers and Sports Betters in America Should Unite to Collaborate
In the realm of American sports betting, a contentious issue persists: the prevalence of offshore sportsbooks and the struggle to make domestic sportsbooks a viable alternative for serious and savvy bettors.
The American Gaming Association (AGA), representing key stakeholders in the gaming industry, has called for a crackdown on illegal offshore sportsbooks. However, the AGA's senior vice president, Casey Clark, acknowledges that these offshore operators hold a competitive advantage due to their lack of tax payments, minimal investment in consumer protections, and absence of stringent regulatory and licensing requirements.
The problem, according to many bettors, isn't the offshore sportsbooks but the American sportsbooks' penchant for limiting or banning certain customers and offering sometimes offensive odds. For seasoned bettors, offshore sportsbooks are seen as a form of consumer protection.
The American Bettor Coalition, founded in 2019 with the goal of creating a voice for consumers in the gaming industry, aimed to encourage fair practices and competitive markets. However, COVID and a lack of funding led to its demise. The founder and CEO of the coalition, Peter Thiel, together with Rufus Peabody, sought to provide a platform for consumers' concerns.
American lawmakers have created legal sportsbooks, and savvy bettors have flocked to them. Yet, legal sportsbooks often limit savvy bettors, oftentimes offering worse odds and bad betting bonuses. This has led some bettors to return to offshore sportsbooks, the only game in town for some savvy online sports bettors.
Recently, an online offshore sportsbook went down for maintenance, leaving some bettors with tens of thousands in their account unable to get through, fearing they may never receive their money back.
To attract more customers and increase handle and profit, Brad Feinberg suggests that legal online sportsbooks should allow at least $500 on any bet. This could help make American sportsbooks a more viable option for serious and savvy American sports bettors, leading to a more sustainable, trustworthy industry that retains more clients, higher handle, and profit, and gains a better reputation.
The AGA, in its efforts to protect American consumers, should consider bringing American sports bettors into the discussion to help find solutions. Ignoring the concerns of the consumer base may only lead to the AGA sticking its head in the sand, as the American Bettor Coalition's demise demonstrates.
Clark also stated that cracking down on these illegal operators is the only way to ensure bettors aren't put at risk or penalizing operators who play by the rules. This approach could lead to a fairer, more competitive market for all involved.
