Problem gambling in focus, DraftKings in the headlines

After an eventful 2024, the last week of the year has mostly focused on a few important developments missed in previous reporting. A huge focus was placed on responsible gambling, as well as several regulatory developments around the world.

For starters, DraftKings has had several recent legal developments to report. One has to do with the company finally reaching a settlement in the case of former executive Michael Hermalyn who was barred from serving in full capacity at rival company Fanatics Betting & Gaming.

A court filing on Monday indicated that the case has now been resolved and that Hermalyn will have to wait until February 1, 2025, to assume his full responsibilities at Fanatics, with the case seemingly going in favor of DraftKings instead.

Elsewhere, DraftKings has been hit with a class-action lawsuit at the US District Court for the District of Massachusetts filed by a Texas resident. The plaintiff, one Eric Avila, has accused the company of wrongfully terminating user accounts without showing any credible evidence as to why this was necessary.

Furthermore, the lawsuit stipulates that DraftKings has been withholding player account balances of shuttered accounts, unlawfully obtaining millions of funds.

In the meantime, Evolution’s gambling license has come under review in the United Kingdom. The country’s regulator, the UK Gambling Commission, has commenced a review of the company’s license under Section 116 of the Gambling Act 2005, alleging that Evolution’s games have been accessible from the UK through non-licensed operators.

Business & finance

Crypto.com has launched its first sports trading product, throwing its hat in the sports betting ring – in a sense.

The product is short of an actual sports betting market, with players offering and trading their predictions on certain sports outcomes, including for major events such as the Super Bowl.

Crypto.com is confident that its product will be a success, owing not least to the fact that the platform is regulated by major financial watchdogs.

Crypto casino Winna.com has raised $15m in a funding round that the company will use to push further out into the world of online gaming. The platform says to have 10,000 active players as of right now and is planning to significantly grow its reach.

Betfred has confirmed that it is leaving Washington due to unexpected circumstances. The company is also moving to cease its operations in Iowa, which means that the sportsbook will only be left operational in two states come 2025.

In the meantime, the New Jersey Division of Gaming Enforcement has handed down several penalties to two sportsbooks and a technological supplier. DraftKings was hit the bulk of the total penalty, $20,000 whereas Rush Street Interactive and Kambi Group received $10,000 each.

A former New Jersey lawmaker, and one of the driving forces behind the Smoke-Free Air Act, has said that the time has come to close the loophole that allows casinos to continue benefiting from an exemption of their in-door smoking policy.

Loretta Weinberg, a former Senator, admitted that when she acquiesced to push the law 20 years ago, she only consented to the casino exemption because she never believed the loophole would last more than two decades.

LiveScore Group has submitted its voluntary withdraw of licensure to the Dutch Gambling Authority, which has granted the request. LiveScore Group previously suggested that it may be leaving the market because of the planned tax increase.

The German gambling regulator has published its review of the year. The regulator said that a lot has been achieved throughout the past 12 months, but indicated that some ongoing challenges remained, and specifically – the reach of the black-market and an ongoing dispute over the black market’s actual share of the gambling industry.

Responsible gambling

This week we saw several interesting pieces dedicated to responsible gambling and problem gambling. The National Health Service in the United Kingdom cautioned against over-spending on Boxing Day, the day after Christmas.

Christmas has been a particularly dangerous time for vulnerable customers who may cave in more easily into excessive spending, the NHS argued.

This claim was borne out by both GamCare and Nationwide which cautioned the public against overspending and pointed out to spending patterns during the Christmas holidays that often saw people spend money that they needed for other purposes.

GamCare also wrapped up the year by reporting an increase in the calls it has received during the 2023-24 reporting period, up 25%.

The voice of the industry

This week we had the pleasure of catching up with James Bennett, Group Head of Communications at EveryMatrix and an expert judge in The Most Ethical Marketing Approach category for the upcoming Casino Guru Awards.

In his interview, Bennett shares insights into his company’s recent successes while exploring the shifting landscape of ethical marketing in gambling.

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