A Florida bettor
who placed a highly publicized $3 million parlay wager is considering legal action against DraftKings after the company froze the customer’s New Jersey mobile sports betting account late last month, Sports Handle has learned. The patron dispute carries widespread ramifications for the emerging U.S. sports betting industry, while calling into question how often top sportsbooks engage in selective enforcement regarding the practice of messenger betting. The dispute could also shed light on whether major sportsbooks are operating in a gray area by condoning a practice that may run afoul of numerous federal and state laws. Messenger betting, while difficult to enforce, occurs when an out-of-state bettor transmits information through a proxy, instructing the proxy to place a wager in another jurisdiction, typically one with legalized gambling.
There is a distinction between regulations on messenger betting in Nevada and states such as New Jersey that did not offer legal sports wagering before the repeal of PASPA in May 2018. Nevada gaming regulations allow an out-of-state sports bettor to place a wager through a proxy, as long as the proxy is not being financially compensated for his services, a former Nevada regulator told Sports Handle.
Sportshandle