PHAI Doubles Down on Lawsuits

The law school’s Public Health Advocacy Institute (PHAI) recently filed a first-of-its-kind lawsuit against Caesars Online Casino in Pennsylvania state court alleging that its $2,500 deposit match promotion for new customers is misleading, predatory and likely illegal. This is the first online gambling lawsuit to question the role of regulators and ask for declaratory relief in addition to monetary damages. The complaint contends that not paying out winnings in blackjack until an enormous wagering requirement is met is contrary to Pennsylvania law.

To meet the promotion’s $2,500 bonus requirement, “a new customer playing blackjack is required to gamble and risk $375,000 within the first seven days after opening an account in order to keep the bonus and collect any winnings,” said Mark Gottlieb ’93, executive director of PHAI.

PHAI Director of Gambling Policy Harry Levant added, “For customers who play two $10 hands of blackjack per minute, in order to meet that wagering requirement, they would need to gamble nonstop for 44 hours per day, which is impossible to do.” PHAI attorney Jacob Wolk ’17, who drafted the complaint, noted that “for Caesars, the promotion is an example of ‘tails I win, heads you lose.’”

Gottlieb (left) and Daynard

Photograph by Mark Ostow

PHAI also filed a lawsuit accusing Abbott Laboratories of misleading parents and caregivers about the nutritional value of its sugar-filled toddler milk. Unlike Abbott’s baby formula, its toddler milk products are not regulated by the FDA and, according to PHAI, are potentially harmful to the children drinking them. Despite concerns, the lawsuit from PHAI says, sales of toddler milk have averaged more than $500 million a year.

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