Predatory Practices? NJ Sportsbooks has inspired gamers to cancel withdrawals and preserve enjoying
The New Jersey Division of Gaming Enforcement (DGE) has threatened fines and regulatory measures against sports betting providers that encourage players to reverse withdrawals.
In a letter released on Wednesday, the DGE said it was investigating the area after a variety of complaints from players.
It turned out that the operators often delayed withdrawals unnecessarily and offered bonuses to players to cancel withdrawals and continue playing.
Both practices violate state gambling laws.
As the DGE wrote: “Operators should clearly understand that the department will take regulatory action and impose civil sanctions if customers are wrongly encouraged or encouraged to withdraw their redemption requests to resume gaming.”
No individual operators were named in the report.
Reverse withdrawals could be an indication of problem gambling
Players are still allowed to cancel withdrawals as long as they do so without being asked.
But even this limitation is controversial in the eyes of responsible gambling experts. The UK Gambling Commission recently asked UK operators to do so no longer offer reverse withdrawals.
In a statement, the commission said reverse withdrawals were a flag of potential gambling damage. This view is backed by “academic research, real experience and expert advice,” added the commission.
Players who are immediately eligible for cash
The DGE also pointed out that the players were entitled to their money “without delay, which was longer than necessary to carry out a fraud prevention or a money laundering check”.
The regulator did not provide an acceptable schedule. However, the DGE investigation found that some customers waited two weeks for access to their money. The regulator said the operators made withdrawals on purpose in hopes that players would cancel and start wagering the funds.
“Such practices are contrary to the intent of the rules,” said the regulator.
Dark side of growth
The letter was released on the same day that New Jersey hit an all-time high for sports betting in December. However, the DGE results suggest that growth may not be entirely healthy if it is based on predatory practices.
Keith Whyte, the managing director of National Council on Problem Gambling asked the DGE to release the names of the operators concerned.
“There are some serious problems with responsible gambling here,” Whyte said. “Especially about promoting the game during arbitrarily extended withdrawal times.”
Whyte said the NCPG will update its internet gambling standards to reflect the risks here. One possible option, Whyte said, was a reverse-withdrawal self-exclusion button.
If a customer withdraws, they can tick a box that says “Don’t let me cancel this transaction” and that would be irrevocable.