| The Wisconsin Catholic Conference (WCC) encourages all citizens to contact their state senator to oppose SB 592 and AB 601, which begin the process of legalizing online sports gambling, and SB 737 and AB 742, which weaken consumer protections for rent-to-own transactions. Both bills have passed the Assembly and may come before the Senate in the next two weeks. Even as amended, both will ultimately hurt consumers and make Wisconsinites less prosperous.
Online sports gambling (OSG) is highly addictive and puts a sportsbook in every bar, bedroom, and boardroom across the state. This type of addictive gambling is distinct from that which happens in-person at a casino or even as part of a low-stakes fundraiser or game with friends.
OSG’s harms include:
- Over time, 96 percent of online sports gamblers lose money.
- Criminal assaults increase 93 percent after an unexpected home team outcome.
- One in 6 individuals with gambling disorder attempt suicide, the highest rate of any addiction disorder.
- OSG increases consumer debt, crime, and family disintegration. These ultimately burden already stretched public assistance, criminal justice, and educational systems.
Similarly, expanding rent-to-own (RTO) transactions, particularly virtual ones, will hurt Wisconsinites:
- The Wisconsin Department of Financial Institutions found that the average RTO transaction charges 2 to 5 times the sticker price on consumer goods.
- RTOs target the financially vulnerable: 80 percent of RTO customers make less than $40,000. And 7 out of 10 customers fail to secure ownership of their leased items. In short, people pay exorbitant costs for an item they ultimately do not obtain. This doesn’t help solve an affordability crisis, it only makes it worse.
- There are virtually no limits on the amount of fees and surcharges, interest rates, and total purchase price over sticker price that RTOs can charge.
- Virtual RTOs (ViRTOs) are nearly instantaneous online transactions, which makes it easier to “hide the ball” or confuse customers on fees, disclosures, and other fine print. Often there are no storefronts to which customers can return their rented goods or seek repairs for their broken items.
When beneficial Wisconsin businesses operate under the Wisconsin Consumer Act (WCA), predatory RTOs should not receive a special exemption from the WCA. Any RTO, including ViRTOs, can currently operate in Wisconsin if they abide by the WCA. ViRTOs choose not to until the laws are changed in their favor. Lawmakers should not indulge them.
For both the OSG and RTO industries to make money, the vast majority of their customers must fail.
Join the WCC in urging your state senator to vote NO on these bills: |
