“It is easier to stay out than to get out.”
— Attributed to Mark Twain
It is a brilliant flash of the obvious to suggest that gaming operators like to keep your money. Back in the day, when I ran casinos, there were several times when a player was getting quite lucky while working on becoming intoxicated (always accompanied by the statement “God loves drunks and fools”), and we would start “floating” the player.
Floating is a process where the player’s drink order is prepared, and a small amount of liquor is placed in a spoon and then gently floated on the top of the drink. This would cause the person to believe it was their regular order, whereas it contained just a small amount of alcohol.
We did this because we wanted the player to continue playing so that we could win our money back. If the player passed out on their chips or otherwise lost their ability to play from drinking too much, the game was over, and the pile of chips and the individual were escorted to their room. So, we floated them to keep them in action.
There is also a story told about the late Dennis Gomes, when he was running the Dunes in Las Vegas (since imploded to make way for the Bellagio). A high roller had won so much that it threatened the Dunes’ bankroll. They notified the player that his plane needed mechanical attention and his departure would be delayed. The player then began playing again and lost everything back to the Dunes. This story was the inspiration for a similar scene in the movie Casino.
The point is, operators want to keep a player in action, and they want to do so because they generally have the best of it.
Back in the day, we also had an expression that captured the notion that we did not want to make it any more difficult for a player to get the money out of the game than it was to get the money into the game. This was just one of those gambling honor things, and it may sound corny now, but it was important at the time. I still believe it is.
Give and take
In the modern world of betting on sports through internet applications, money needs to be deposited into the system, and if the player wants it back, it must be withdrawn from the system. Getting the money out can be a point of contention in modern digital sports betting.
With the advent of sports betting, I opted to test-drive several sites. Once I requested a withdrawal, and was informed that my account had been suspended. It took some time to get my account unsuspended. One delay occurred because the person handling my issue, who worked for the operator, took a few days off, and it was she who was responsible for resolving my issue. It was all slow going.
I finally called the regulator and asked for help. He asked why I might have been suspended, and I speculated that maybe I was better at math than they were, and that annoyed them, but who knows? Anyway, the regulator called me back and said that they would be returning my money. Nothing more was explained to me.
After my experience, I started hearing several other curious withdrawal stories. I also speculated that, from my understanding of the mindset of an operator, maybe, just maybe, they were intentionally slowing the withdrawal process down. The motivation for this would be that they wanted another bite at that bankroll apple.
“I finally called the regulator and asked for help. He asked why I might have been suspended, and I speculated that maybe I was better at math than they were, and that annoyed them, but who knows?”
Since operators do not appear to publicize the complaints they get for slow withdrawals, or anything else, I opted to undertake some research. I was surprised to find that folks like to complain to the Better Business Bureau (BBB) across the U.S. about betting operators.
If one examines DraftKings, FanDuel, and BetMGM, they will find thousands of complaints from around America with the BBB. Moreover, of these three firms, the highest rating earned is a 1.08 out of five stars from the BBB. And the most contentious issue? Withdrawals. See here, here, and here.
The point is that based on people who are annoyed enough to go to the Better Business Bureau with a complaint, a good percentage of them address withdrawals.
What’s taking so long?
It is also important to consider that the operator may have motivations to slow down the withdrawal process.
Many bettors lack the bankroll depth necessary to maintain funds with all operators in a market. They may want to move their money around because of bonuses or pricing advantages offered at a different book, but slowing down the withdrawal process artificially will prevent that ability. It may then be the case that to bet on a favorite team or best pick, the bettor has to bet at the book holding his bankroll hostage.
The operators could also impose unnecessary friction on the bettor’s withdrawal, allowing them to send additional incentives to the customer. The customer may need the money for something that is coming due, and this dance by the operator is just wasting time.
The operator could also benefit their cash management position by artificially imposing frictions within the process.
The point is that when a bettor wants their money, and if the store is holding it for no material reason other than hoping they will place another bet as a result of the delay, that is inappropriate. The bettor is entitled to their money without artificial barriers being placed in the way.
If this nonsense is taking place, and it certainly seems to be the case that it is, I would like to make the following suggestions to regulators:
- During the enrollment process, the operator should be required to collect all necessary information to facilitate a withdrawal. Don’t make it fast in and slow out. Minimize withdrawal friction as much as possible when the person opens the account.
- Have the operators maintain statistics as to the time it takes from a player requesting a withdrawal until the funds are transmitted to the individual. Moreover, this report should be filed monthly to the regulator. They could then see which operators are unnecessarily gumming up the works and which operators abuse the process.
Too often in today’s sports betting world, it seems that the last thing considered is what is best for the bettor. In my opinion, and I would guess that of the Better Business Bureau, they deserve more from the regulators.
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Richard Schuetz entered the gaming industry working nights as a blackjack and dice dealer while attending college and has since served in many capacities within the industry, including operations, finance, and marketing. He has held senior executive positions up to and including CEO in jurisdictions across the United States, including the gaming markets of Las Vegas, Atlantic City, Reno/Tahoe, Laughlin, Minnesota, Mississippi, and Louisiana. In addition, he has consulted and taught around the globe and served as a member of the California Gambling Control Commission and executive director of the Bermuda Casino Gaming Commission. He also publishes extensively on gaming, gaming regulation, diversity, and gaming history. Schuetz is the CEO of American Bettors’ Voice, a non-profit organization dedicated to giving sports bettors a seat at the table.
