A newly proposed legislation in the State House aims to restrict Mainers from utilizing credit cards for online sports betting.
Presented by Rep. Marc Malon (D-Biddeford), LD 2080 was introduced last week to the Legislature’s Veterans and Legal Affairs Committee. The intent of this legislation is to safeguard Mainers from accumulating gambling-related debts and to mitigate the risks of compulsive gambling, according to Malon.
This bill emerges amidst the rising trend of online sports betting within the state. Presently, DraftKings and Caesars Palace are the two companies facilitating online sports betting in Maine. While Caesars has already prohibited credit card usage, DraftKings permits users to place bets with “reward points” and even markets its own branded credit card.
“Legal, regulated gaming generates employment and provides considerable revenue for our state,” Malon remarked. “However, as sports wagering continues to gain traction and iGaming is introduced, it’s imperative for the Legislature to implement measures that balance the economic advantages of sports betting with essential precautions to protect Mainers from gambling addiction and financial distress. This bill achieves that balance.”
Malon referenced data from GREO, commissioned by the UK Gambling Commission, indicating that allowing credit card transactions for online gambling correlates with increased betting amounts, heightened rates of compulsive gambling, and more severe financial repercussions, as it enables individuals to accrue debt more readily.
In a report from FOX23, Malon asserted that while traditional gambling at a casino necessitates physical attendance, online gambling can pose a significantly greater risk of addiction.
He emphasized that physical casinos already incorporate natural limits and safeguards, while placing bets via a mobile application, even with a debit card linked to a bank account, still entails considerable risks. “Once you’ve exhausted your funds, you’re finished. However, using a credit card may lead to substantial debt,” Malon elaborated.
Seven states, including Maine’s neighboring New Hampshire and Massachusetts, have already implemented similar restrictions.
The Veterans and Legal Affairs Committee plans to conduct a work session on the proposed bill in the upcoming weeks. An amendment is anticipated to guarantee that the newly established iGaming platforms in Maine fall under the proposed guidelines.
Serving his second term in the Maine House, Malon represents a portion of Biddeford and is a member of both the Housing and Economic Development and Veterans and Legal Affairs committees.