The history of sports betting includes well-known cases of fraud and bad actors meddling with winnings. Sports betting legislation though has not addressed “The Right to Recourse.” Lawmakers must ensure that every bet placed is protected in the event a transaction goes awry. The right requires systems and resources, such as internal complaint process information and access to the government regulators’ complaint system, to be conveniently accessible to all sports bettors.

The right is essential to establish credibility in the legalized sports betting market and to further maintain consumer trust. In the event, fraud occurs, or an operator tries to avoid or delay financial obligations, the bettors must be able to take legal action and receive compensation from the operator. Sports bettors should not have to give up their right to seek relief in court, and sports betting operators should have a clear, expeditious protocol to address concerns raised by bettors.

These protocols should not remove a bettors private right to action. In no way, shape or form, should forced arbitration be allowed. States must protect consumers to ensure they are receiving their earnings, a protection that the black market does not offer. The incentive for a sports bettor to leave the black market will only occur if these proper consumer protections are in place. “The Right to Recourse” is a protection legislators must enact.

Learn more by reading our white paper on sports betting.

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