Washington D.C. considering exemption of sports betting from ancient gambling legislation due to ongoing $300million legal dispute
In the heart of the nation's capital, a significant legal battle is unfolding. The District of Columbia (D.C.) is grappling with a centuries-old law, the Statute of Anne, and its potential impact on a $300 million lawsuit against prominent sports betting operators.
The lawsuit, initiated by D.C. Gambling Recovery LLC, is based on the Statute of Anne, a British gambling law enacted during Queen Anne's reign in the 18th century. The statute allows for the recovery of losses on bets exceeding $25, a provision that has been part of D.C.'s city laws for decades.
However, the plaintiffs' attorneys argue that the provision prioritizes the financial interests of gambling operators over the priorities of District residents. They contend that the statute is outdated and should be amended to reflect modern betting practices.
On the other side, Jeff Ifrah, a founder of a trade group representing the sportsbooks sued in D.C., states that the Statute of Anne is archaic and insensible for the modern era, a view shared by D.C.'s Attorney General Brian Schwalb. Schwalb has promised the court that the D.C. Council will soon clarify that the statute does not apply to legalized modern sports betting.
In response, the D.C. Council is planning to vote next week to exempt sports betting from the 300-year-old law. This move would effectively undermine the $300 million lawsuit, which seeks damages from sports betting companies for wagers placed since 2019. A win in the lawsuit would require the plaintiff to split the damages in half with Washington, potentially swelling the District's coffers by over $300 million.
The proposed change to the Statute of Anne in Washington D.C. has garnered support from the local government, with the D.C. Council's insertion of a provision in Mayor Muriel Bowser’s budget bill aiming to clarify that sports betting is exempt. This move signifies strong local government support for the amendment to prevent application of this outdated law.
However, the plaintiffs are not happy with the Council's move and have urged them to remove the retroactive provision from the budget. They argue that it is fundamentally unfair to pass such a law amid ongoing litigation, as it would eliminate the city’s ability to collect a large sum.
The proposed change to the Statute of Anne, if passed, could potentially impact the sports betting industry in the District of Columbia, including major players like BetMGM, Caesars, DraftKings, Fanatics, and FanDuel, who are named in the lawsuit.
In conclusion, the proposed change to the Statute of Anne in Washington D.C. would exempt sports betting from this centuries-old law, effectively undermining a $300 million lawsuit against sports betting operators brought under its provisions. The decision will likely have significant implications for both the sports betting industry and the District's fiscal future.
[1] Source: Washington Post [3] Source: Forbes
- The ongoing lawsuit between D.C. Gambling Recovery LLC and sports betting operators, based on a 300-year-old British gambling law, is located within the realm of policy-and-legislation and politics, as it involves the amendment of a centuries-old law to adapt to modern betting practices.
- The proposed change to the Statute of Anne in Washington D.C. not only impacts the sports betting industry, including companies like BetMGM, Caesars, DraftKings, Fanatics, and FanDuel, but also has far-reaching implications for the District's general-news, as it could significantly affect the District's fiscal future.
