The Current: Hey, An Online Gambling Operator Won A Court Case, Too
BetMGM wins again in appeal from alleged gambling addict. Gambling news roundup: Texas Lottery votes to ban couriers; Penn talks ESPN Bet's poor performance; BetOnline gets a cease-and-desist
Every single misstep by a regulated online sportsbook or casino can turn into weeks or months of bad press. Legal sportsbooks and casinos in the US have gotten crushed mercilessly for some of their marketing and VIP tactics — sometimes deservedly so, sometimes not.
Which brings us to today’s topic: A court case where the casino won.
The Third Circuit Court of Appeals affirmed an earlier US district court ruling that dismissed a lawsuit in Antar v. BetMGM. In the case, the plaintiff is trying to recoup almost $25 million from MGM’s online platforms; he argues he is owed something because the operator was trying to keep him gambling through a VIP program.
A three-judge panel in the Third Circuit rejected the case after arguments were heard at the end of last year.
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A few key passages from the ruling:
“Antar asserts that the defendants engaged in unconscionable business practices but cannot show that the communications from his VIP hosts had ‘the capacity to mislead’ as required by the CFA (Consumer Fraud Act). In his supplemental brief, Antar argues that through “dozens of solicitations[,]” “the Defendants calculated to mislead and deceive him into continuing to deposit money and gamble on its platform.” He does not explain how any of the dozens of communications he lists in his complaint were misleading. Antar was fully aware that the text messages from his VIP hosts offering bonuses, credits, and deposit matches were exactly as the hosts represented — enticements to continue to gamble. Following New Jersey Supreme Court precedent, Antar fails to plead that the defendants engaged in unconscionable business conduct under the CFA.”
“Antar did not plead the amount of the loss, nor did he provide a means for calculating the alleged loss. Indeed, the only dollar figure Antar provides is that his total ‘gambling activity exceeded $24 million.’ In his supplemental brief, Antar argues that his losses ‘are precisely quantifiable and measurable[,]’ and comprise the “out-of-pocket amounts deposited and lost by Plaintiff as the result of Defendants’ enticements between 2019 and January 2020.” But as we recognized in Hakimoglu v. Trump Taj Mahal Assocs., gambling losses “present almost metaphysical problems of proximate causation ... and under the prevailing rules and house odds, ‘the house will win and the gamblers will lose’ anyway in the typical transaction.” Antar does not explain how the court would be able to differentiate the losses he suffered as a result of the defendants’ alleged conduct versus those losses he suffered as a natural result of playing a game where the odds are stacked against the player.”
A good writeup on the latest ruling from Casino Reports here, with more from Antar’s attorney. You can see the ruling here:
A few stray thoughts:
This case has gotten thrown around the US a lot as an example of ONLINE GAMBLING IS BAD, even though two courts have now said there’s not even a good legal case here.
Here, at least, nothing illegal or worthy of restitution was done. Does that mean any of this was great from a responsible gambling/problem gambling standpoint? Maybe he would have lost all his money without the inducements, maybe not. It’s not clear this is an iron-clad example of an online gambling platform being in the wrong. Even if MGM was not legally in the wrong here, there’s always more that can be done for problem gamblers: being able to identify them before harm, creating programs and generating funding to help them, etc.
It’s at least interesting to note that a lot of the same arguments are at play in a similar court case in Patel vs. FanDuel, the infamous case involving the former Jacksonville Jaguars employee. The same attorney is also involved.
Gambling news roundup
Texas lottery bans online sales through third-party couriers amid mounting criticism (Texas Tribune): “The Texas Lottery Commission unanimously voted Tuesday to ban lottery courier companies from selling tickets online amid lawmakers’ ongoing criticism of the practice. The vote was an about-face for the agency, whose officials previously claimed the commission could not regulate the services. Couriers are third-party services that sell lottery tickets through websites or apps, then print and scan the tickets at licensed lottery retailers that they usually also own. The businesses have operated in Texas for almost a decade, but have recently drawn legislators’ ire. Lawmakers fear such online sales enable illegal purchases by out-of-state or underage players. The ban allows the commission to immediately revoke the lottery license of any retailer that knowingly assists or works with couriers.”
While Lotto.com recently sued to try to stop this from happening, it’s not clear that couriers could operate in Texas in such a negative environment, even with a win in court. And that’s to say nothing about a potential ban being considered in the legislature.
Penn: Sports Betting ‘Has Not Met Our Expectations’ (Legal Sports Report): “Penn Entertainment told shareholders it is ready to improve its sports betting product, but made it clear it can pivot if necessary. Chairman David Handler and CEO Jay Snowden co-penned a letter to shareholders to open its proxy statement concerning its June 17 annual meeting, hitting on its ESPN Bet sports betting product as a main topic. ‘That said, our market share and financial performance in sports betting to date has not met our expectations,’ the letter reads. ‘Our Board and management team are moving swiftly and decisively to recalibrate execution and unlock the full value of this partnership. We have a committed partner and shared desire to compete and build share in a financially responsible way. While our initial integrations have expanded reach and driven customer acquisition, we recognize there’s more work to do to deliver on the full potential. As mentioned on our Q4 earnings call, we are optimistic that our joint efforts with ESPN will deliver improved results over the coming quarters, but we maintain optionality and control of our future in this vertical if this does not prove to be the case.’”
Penn has a little over a year to turn this around before a potential opt-out. If we don’t see a decent improvement in metrics during the upcoming football season, it would be hard to see how the relationship with ESPN can continue.
Kalshi’s New Jersey Win: Looking For Answers? Too Bad. (Event Horizon): “I’ll not mince words: I think the decision is poorly reasoned, and I don’t know if it’ll hold up on appeal. Here are four reasons why. First, the breezy 16-page opinion has four pages of analysis on the legal merits (the ‘likelihood of success’ analysis). Four. I don’t have to look very hard to know that the State’s arguments got short shrift. Second, the opinion borrows too much from the Nevada decision. Call me old fashioned, but I’m a firm believer that a judge should call balls and strikes based on the pitches he sees, and not rely on the calls that another ump made during yesterday’s game. To be sure, the Nevada case is relevant – but it shouldn’t be the starting point of the court’s analysis. But that’s what we saw in New Jersey: Judge Kiel’s ‘legal analysis’ begins with the Nevada decision. The State wasn’t arguing against just Kalshi; it was arguing against Kalshi and Judge Gordon in Nevada.”
Michigan Gaming Control Board issues cease-and-desist orders to SportsBetting.ag and BetOnline.ag for illegal operations (MGCB press release): “The Michigan Gaming Control Board (MGCB) has issued cease-and-desist orders to the Panama-based operators of SportsBetting.ag and BetOnline.ag for conducting illegal gambling activities in Michigan. These operators are in violation of Michigan’s Lawful Internet Gaming Act, Gaming Control and Revenue Act, and Michigan Penal Code. The MGCB’s actions follow investigations prompted by an anonymous tip. SportsBetting.ag has been illegally accepting wagers on sports, horse races, politics, table games, card games, and virtual casino games. This site has also been offering cash-back incentives for casino losses. BetOnline.ag has been facilitating a range of illegal betting options, including sports betting, live events, casino-style games (slots, table games, blackjack, poker), horse racing, esports, and various contest tournaments. These activities, which involve real-money wagers, can be funded via credit card, wire transfer, or cryptocurrency. Neither platform holds the necessary licenses to operate in Michigan. “The Michigan Gaming Control Board is committed to enforcing Michigan’s gaming laws and protecting consumers from illegal gambling,” MGCB Executive Director Henry Williams said. “We encourage residents to only engage with licensed and regulated online platforms for a safe and fair gaming experience.”
Michigan governor appoints new gaming regulator chair (SBC Americas): “Jim Ananich will be the new chair of the Michigan Gaming Control Board (MGCB), subject to approval from the state Senate.
MGCB Executive Director Henry Williams confirmed in a statement that Gov. Gretchen Whitmer appointed Ananich effective April 25, 2025. Ananich’s term is due to expire Dec. 31, 2028. He succeeds Linda Forte, whose term is up, and he will represent Democrats on the board.”
Kindbridge Research Institute Launches First National Initiative on Financial Stability and Responsible Gambling (press release): “Kindbridge Research Institute (KRI), a leading nonprofit organization dedicated to advancing research and solutions in behavioral addiction and mental health challenges, has launched the Financial Stability and Responsible Gambling Initiative—the first coordinated U.S. effort to confront gambling-related financial harm as a public health and financial stability issue. The multi-year national initiative brings together experts in finance, healthcare, and research to develop practical strategies for reducing the financial harm that can result from gambling, including mounting debt, missed payments, and money stress that affects a person’s stability or health. These financial problems are often the first sign of deeper struggles. In clinical settings, many of those who seek help for gambling later learn they’ve also been dealing with mental health challenges such as anxiety, depression, or trauma, making this a critical point for early intervention. ‘Financial stress connected to gambling is often one of the earliest signs that a person is under serious strain—whether it’s emotional, psychological, or financial,’ said Daniel Umfleet, Director of Kindbridge Research Institute’s Financial Stability and Responsible Gambling Initiative. ‘By bringing together sectors that haven’t traditionally worked in partnership, we have a real chance to step in earlier, coordinate care, and build practical responses that stabilize lives and strengthen systems of support.’”
Entain names David permanent CEO, looks to soup up BetMGM sportsbook (SBC Americas): “Entain has named interim CEO Stella David to the role on a permanent basis to replace Gavin Isaacs, who stepped down in February.
David was in her second spell as interim chief executive, having previously served in the role temporarily when Jette Nygaard-Andersen left in late 2023. Effective immediately, she is now the full-time CEO. David was also chairman of the group from April 2024 until February 2025. ‘Entain has a clear strategy and we are making great strides in strengthening our operational capabilities,’ David said. ‘Having taken the time to reflect, I am hugely excited to be leading the business going forward as Entain CEO as we accelerate our journey of improvement.’”
I think there’s a lot to unpack in this ranking. If you are an unregulated, quasi-regulated or lightly regulated* operator, you are more often than not getting celebrated as a “disruptor” (*federally regulated in one instance). Notice how none of these companies are involved in the state-regulated online casino or sports betting industries. That’s mostly because no one is being incentivized to try to disrupt the regulated space; it’s more compelling to do it another way. Policymakers should take notice of where the innovation is happening — either because you want to stop the unregulated behavior or because you want innovation coming to your regulated market. (It’s also a good illustration of the myth that online gambling is effectively banned in most places.)
Louisiana considers sports betting tax hike to benefit college athletics (SBC Americas): “Lawmakers in Louisiana are considering a piece of legislation that aims to double the state’s tax rate on sports betting after a bill in 2024 failed to leave a House committee. House Bill 639 was approved with a 20-1 vote on Monday by the House Appropriations Committee. The measure would amend Louisiana Revised Statutes to raise the state’s online sports wagering tax from 15% to 32.5%. The tax hike, proposed by Rep. Neil Riser, would give online sports betting and retail video draw poker devices the same rate.”
Evergreen addendum to tax-hike news: How much state tax does Louisiana think Kalshi is currently paying to offer sports betting in the state?
Missouri Gaming Regulators ‘Keenly Aware’ of Sports Betting Launch Interest (Sports Betting Dime): “Missouri gaming regulators know you want sports betting and they’re doing everything in their power to launch prior to the Dec. 1, 2025, deadline. Missouri Gaming Commission Chairman Jan M. Zimmerman told Sports Betting Dime the commission is expecting to receive its Missouri sports betting rules from the governor’s office on May 13 and open up its sports betting license application window on May 14 through Aug. 30. ‘The staff is keenly aware of how anxious people are to get sports wagering up and running in the state. They’re doing everything in their power to do so,’ Zimmerman told Sports Betting Dime.”
The New Normal: False Promises, Real Dangers - Exposing the New Wave of Gaming Scams (Webinar, Wednesday at 1 ET, 10 PT; register here): “Fake online casinos and fraudulent gaming offers are spreading fast - and tribal gaming operations are being directly targeted. WinnaVegas Casino Resort recently issued a warning about false online advertisements, and Casino Del Sol alerted customers about fake offers made through unauthorized social media pages. These scames not only deceive players - they undermine the integrity of tribal and regulated gaming nationwide. Join us for the next episode of The New Normal as we talk with Tyler Burtis, former Special Agent in Charge with the Bureau of Gambling Control, California Department of Justice, about the rise of these dangerous scams and the real threats they pose to players, tribal enterprises, and the broader gaming industry. We'll discuss how these false promises are luring players, the tactics used by fraudulent operators, and what tribes and regulators can do to fight back.”
Caesars Entertainment Adds Pari-Mutuel Horse Racing to Caesars Sportsbook App in Kentucky and Colorado Ahead of the Kentucky Derby (press release): Caesars Entertainment, Inc. (NASDAQ: CZR) today announced it has successfully integrated pari-mutuel horse race wagering into the Caesars Sportsbook app in two U.S. jurisdictions ahead of this year’s Kentucky Derby. Now, horse racing fans in Kentucky and Colorado can conveniently toggle between the elevated sports wagering experience on the Caesars Sportsbook app and the Caesars Racebook wagering interface, powered by NYRA Bets. The seamless shared wallet experience combines the best-in-class Caesars Sportsbook experience with pari-mutuel wagering on horse racing all in one place and tied to Caesars Rewards®, the gaming industry’s leading loyalty program. Customers earn Reward Credits and Tier Credits for every horse racing wager. ‘Integrating pari-mutuel horse racing into the Caesars Sportsbook app is a significant milestone for both our digital business and the sport of horse racing,’ said Dan Shapiro, Senior Vice President and Chief Development Officer at Caesars Digital. ‘Our customers will be able to bet on horse racing, whether it’s the sport’s biggest events or daily races from tracks around the world. Now, our product seamlessly puts the action directly in front of an expanded audience and reinforces Caesars’ commitment to horse racing. We look forward to continuing our work with the New York Racing Association and NYRA Bets to expand the availability across more states as we gain regulatory approvals.’
Vixio Launches Vixio Workspace: A Transformative Regulatory Management Tool (press release): “Vixio, a leading provider of regulatory intelligence solutions, is excited to announce the launch of Vixio Workspace, a new regulatory management tool designed by compliance professionals, for compliance professionals. Vixio Workspace introduces a new intuitive workflow capability into Vixio’s regulatory intelligence platform, helping to transform Vixio’s world-class regulatory intelligence into actionable steps. Mike Woolfrey, CEO of Vixio, said, ‘We’ve spent hours listening to our customers’ compliance challenges and designed Vixio Workspace so that users can see global regulatory updates, track their progress to implementation, and document everything for easier attestation, rather than using siloed systems that can slow that process down. With Vixio Workspace, complexity in compliance doesn’t have to mean complicated.’”
Do they ever lose court cases?
I should add, though, that I agree that there was nothing illegal in this case. Should airlines stop frequent flyer points?