Amid a torrent of revenue rolling in, there is a more sinister side to the online sports betting phenomenon, Business Report writes in its latest issue.
Some Baton Rouge attorneys are noticing a disturbing financial trend that can, at least in part, be attributed to online gaming’s growing popularity.
In reviewing his clients’ bank statements over the last two to three years, bankruptcy attorney Robert Hoke of Hoke Law Firm has noticed a significant uptick in the number of transactions involving online gaming apps.
“It’s on 60 to 70 percent of the bank statements of my clients who are filing for bankruptcy,” Hoke says. “And while gambling might not be the root cause of their problem, it’s not making things any better when they have the ability to make bets in the palm of their hands.”
Earlier this year, Hoke added a gambling affidavit to his standard bankruptcy forms to make his clients aware that if they continue to gamble, it could be detrimental to their case. Quite often, the courts will require that they not gamble while under bankruptcy protection, or if severe enough, have them barred from entering a casino (a process handled by the Louisiana State Police). Some take an additional step—three of Hoke’s clients voluntarily attend Gamblers Anonymous meetings.
There’s some uncertainty as to whether sports betting apps would be required to abide by similar exclusions. That’s mainly because it’s more difficult to track, as transactions can be easily masked through credit card purchases, Venmo and other money transfer platforms.
Attorney Morley Diment of Diment & Associates in Baton Rouge says online sports betting is undoubtedly a causal factor in today’s bankruptcy cases, but it’s difficult to say if it’s responsible for a recent surge in filings.
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