Delta’s new plan may be illegal and could cost flyers millions | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Airlines have experienced turbulent times recently, between Covid, inflation, threats of global war, and issues with air traffic control, including staffing shortages and questions about outdated technologies potentially impacting safety.

Delta Airlines is faring pretty well amid the chaos, even as other airlines struggle. In fact, the company reported “solid profitability that was flat to prior year and is expected to lead the industry,” according to its most recent earnings statement.

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Still, with the future uncertain as the potential threat of higher tariffs lingers and makes consumers reconsider their travel plans, it’s always worth looking for opportunities to juice profitability even further.

Delta appears to be doing just that with a surprising new partnership that could bring in big money for the airline, while potentially separating consumers from many millions of dollars.

The partnership was revealed with much fanfare earlier this year, but there are questions about exactly what Delta’s future plans are — and whether the actions they’re going to take could run afoul of the law.

Delta’s latest partnership has raised some eyebrows.

Image source&colon; Brandon Bell/Getty Images

Delta’s new partnership has the potential to bring in substantial revenue

In January, when giving his CES speech in Las Vegas, Delta Air Lines CEO Ed Bastian unveiled the airline’s new partnership with DraftKings.

Specifically, Bastian said, “From fantasy sports to online adventures, gaming has become part of the daily lives of millions of our customers. And you shouldn’t have to hit pause just because you’re in the sky.”

Although specific details on the partnership were not immediately revealed, Delta recently offered a clue as to its intentions.

The airline conducted a survey that asked customers if they would like “exclusive access to sports gambling (sportsbook) opportunities,” which could be something to “trial or explore on your personal device through Delta’s Wi-Fi portal.”

While the question may come as a surprise to consumers, it’s an understandable one, given the potential amount of profit Delta could earn. In fact, in 1996, the Department of Transportation estimated that airlines could earn approximately a million dollars per year if they were able to offer in-flight gambling. This translates to $1.6 million in 2020 dollars.

Since Delta has close to 1,000 aircraft, this could be a billion-dollar moneymaker for the airline — and separate consumers from a whole lot of cash as they pass the time on flights.

There’s just one problem — it’s illegal

While Delta’s plan may seem like a great way to bring in revenue — albeit at the potential cost of flyers’ financial security — the Gambling Devices Act of 1962 makes gambling illegal on all commercial aircraft in the United States.

This has led to big questions about Delta’s actual plan, since partnering with a gambling service doesn’t seem to be the smartest move if in-flight gambling is not allowed.

One theory is that the airline might offer gambling with no monetary bets to avoid running afoul of the law, but that seems like a strange move.

There’s also some speculation that Delta may try to skirt the law by promoting gaming through the company’s online content. But having a website they don’t host — namely DraftKings — provide the content would mean they could technically remain in compliance with the law.

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It remains to be seen exactly how this partnership will play out, but one thing is for sure — there’s a lot of potential money at stake, and consumers may soon be faced with the chance to gamble away their vacation funds before they even get to their final destination.