The Public Health Advocacy Institute (PHAI), a non-profit group formed by professor Richard Daynard who won several important cases against ‘Big Tobacco’ in the 1990s, filed the lawsuit in Philadelphia, Pennsylvania, alleging that Caesars and its brick-and-mortar partner Harrah’s Philadelphia Casino are engaging in dangerous and illegal promotional practices that put customers at risk.
According to the legal filing, while Caesars advertises a “$2,500 deposit match” to new customers, the small print reveals that players must gamble $375,000 in their first week after opening an account before they can withdraw any money or winnings.
The suit emphasises that all losses during this seven-day period are retained by the casino operators.
Dr. Harry Levant, director of gambling policy at PHAI, said: “It is unconscionable for a gambling company to knowingly require people to gamble excessively and put their mental health at risk as a condition to cash out their winnings.
“More importantly, nothing in Pennsylvania’s gambling rules or laws permits a casino to refuse payment unless and until customers begin gambling to excess. This is dangerous to Caesars customers, immoral, and just plain wrong.”
The advocacy group’s analysis highlighted the difficulty of meeting the promotion’s requirements through normal play.
For example, it argued that a player wagering $10 per hand at blackjack, playing two hands per minute non-stop, would need to gamble for 312.5 hours to reach the $375,000 threshold.
With the promotion limited to seven days, this would require an impossible 44 hours of continuous gambling daily.
Pennsylvania’s state gaming regulator was also singled out for criticism in a press release announcing the lawsuit.
PHAI executive director Mark Gottlieb said: “The math alone demonstrates the predatory design of Caesars’ conduct and if the Pennsylvania Gaming Control Board (PGCB), which has allowed this to go on for years, is incapable of applying the law and protecting the public from Caesars, we at PHAI must turn to the courts to put a stop to this injurious malfeasance.”
Dr. Levant added: “The Pennsylvania Gambling Control Board is either complicit in this arrangement or completely unaware of what Caesars is doing to the people of Pennsylvania.”
A PGCB spokesperson told NEXT.io: “We are aware this lawsuit was filed and are reviewing it. As such we don’t have any comment.”
PHAI has previously challenged gambling operators in court, including a class action against DraftKings in Massachusetts and a lawsuit against the Massachusetts Gaming Commission over data collection requirements.
The case is listed as Brubaker vs Chester Downs and Marina, LLC et al. in the Court of Common Pleas, Philadelphia County.
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