Caesars CEO Concerned Federal Sports Betting Regulation Possible

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ATLANTIC CITY, NJ — Caesars CEO Tom Reeg said recently that he is worried the sports betting industry will face federal regulation if it does not alleviate responsible gaming concerns. 

“Responsible gaming is not just a PR problem that we throw some money at and hope it goes away. This is something that as gaming becomes more and more a part of daily life and people’s lives that don’t gamble. That’s a new development,” Reeg said in a speech at the East Coast Gaming Congress conference. 

Reeg said that he spent time recently responding to a letter from Sen. Richard Blumenthal about responsible gambling

Blumenthal wrote recently to eight major sports betting operators, including Caesars. He demanded that they stop using data to target problem gamblers. 

Sports betting ad frequency issue

Reeg delved into his sports betting concerns as part of a wider statement regarding the gambling industry’s overall marketing strategy of gambling. 

“I worry about it in digital, when I’m watching an NCAA Tournament game or an NFL game, that two out of every three ads seems to be a sports betting ad. That’s troubling to me. And I recognize that we were part of that when we launched in 2021,” Reeg said. “As we’ve pulled back from that, our share has not degraded even though others continue (to do so). 

“As Jim (Allen) stated, what DraftKings, FanDuel and others have built in the space is extraordinary. But I spent last week answering a letter from Senator Blumenthal about responsible gaming. As we continue down the road, we as an industry have to develop responsibly in a matter that doesn’t encourage federal intervention. These are the kind of things that keep me up at night. How do we stay in front of it?” 

Responsible gambling coalition formed

In late March, seven of the largest sports betting and internet gaming operators announced a coalition to promote responsible gaming. Caesars was not part of that group. 

US Rep. Paul Tonko authored a bill that would place significant restrictions on gaming ads. It would also limit how frequently Americans bet, and place guardrails on AI-power customer acquisition tools. 

The industry has been marred by multiple sports betting scandals in recent months. NBA Commissioner Adam Silver, who banned Jontay Porter for life for violating the league’s gambling policy, has called for federal regulation