U.S. Congressman Paul Tonko of New York and Senator Richard Blumenthal of Connecticut introduced the Supporting Affordability and Fairness with Every Bet, or the SAFE Bet Act, which would impose federal guidelines on top-rated sportsbooks.
Make Betting SAFE Again
Mobile and/or retail sports betting is now available in 38 states plus Washington DC and Puerto Rico. Betting on games has become commonplace and it is estimated that 50% of Americans have made a bet at some point in their lives. However, at least two lawmakers believe more needs to be done to police the blizzard of advertising that can exploit those most vulnerable and provide greater resources for problem gamblers.
“This relationship between the gambling industry and sports has reached intolerably dangerous levels, and it’s well past time for Congress to just step up and make a difference,” Representative Paul Tonko said in a press conference on Thursday.
Post-PASPA Sports Gambling
The sports betting industry has boomed since PASPA was overturned in 2018, permitting states to decide for themselves whether to legalize sports betting and create a substantial revenue stream by taxing sports betting operators’ profits.
However, some legislators are concerned that the industry advertises too much and that its promotions can be tailored to a person’s betting habits using artificial intelligence. “Now every single solitary moment of every sporting event across the globe has become a betting opportunity, whether you’re scrolling on social media, driving down the highway past billboards, or listening to your favorite podcast or radio station, sports betting ads are there to prompt you with an endless cascade of flashy promotions,” Tonko said.
U.S. Senator Richard Blumenthal is a co-sponsor of the SAFE Bet Act and stated, “Right now, states have legalized gambling, but they failed to protect citizens against those excesses, abuses, and exploitation. State regulation is faint-hearted and half-baked. That’s why we need a national standard — not to ban gambling — but simply to take back control over an industry that is out of bounds.”
Some of the criteria in the sweeping federal legislation would ban sports betting during live sports events. It would also prohibit more than five deposits in a 24-hour period while also banning the use of AI to track a player’s gambling habits, which would determine promotions that would more likely appeal to that player.
Industry Sports Bettors Clap Back
The proposed legislation was certain to merit a response from the industry heavyweights and it will likely rankle state regulators, many of whom already have advertising limits imposed as well as other guardrails and consumer protections.
Chris Cylke, the American Gaming Association’s senior vice president of government relations, said, “Today’s regulated sports wagering operators are contributing billions in state taxes across the U.S., protecting consumers from dangerous neighborhood bookies and illegal offshore websites, and working diligently with over 5,000 state and tribal regulators and other stakeholders to ensure a commitment to responsibility and positive play.”
Clyke also called the proposed sports betting legislation a “slap in the face” to state regulators and gaming operators that have spent considerable time investing in responsible gaming resources. Representative Dina Titus, D-Nev., called the SAFE Bet Act “outdated” and “unwarranted.”
It is unlikely this legislation will generate enough support to allow the federal government to supersede what state regulators have already done. However, it may provide ideas that those regulators could incorporate should they see fit to do so.
