An ambitious piece of legislation that aims to insert the federal government into oversight of legal sports betting is already under fire from its detractors and may face an uphill climb in an already divided Congress.
New York Rep. Paul Tonko and Connecticut Sen. Richard Blumenthal formally introduced the SAFE Bet Act last week, a bill that would put a blanket ban on sports betting across the U.S. unless authorized by the Department of Justice.
The proposed legislation quickly drew pushback from the gaming industry and one influential lawmaker, Nevada Rep. Dina Titus, who said it was a “misguided approach” to try to pre-empt state regulators.
Not so fast, my friend
Titus’ district includes part of Las Vegas, and she co-chairs the Congressional Gaming Caucus in Washington, D.C.
Moreover, despite sharing Democratic Party membership with Tonko and Blumenthal, and despite seeing their effort as well-intentioned, Titus is bearish about the SAFE Bet Act’s prospects in the legislature, especially now, in the midst of the campaign season.
“It’s partly a messaging bill,” Titus said Thursday during a gaming-focused event hosted by news outlet Semafor. “I don't see it passing, certainly not this session. Probably nothing's going to pass this session, but we don't want it to get a head of steam going forward.”
Asked about the SAFE Bet Act sponsored by Rep. Paul Tonko, @repdinatitus tells @eschor:
— Semafor (@semafor) September 19, 2024
"I think that's better to have self-regulation or state regulation, not to have the federal government get involved at this level." pic.twitter.com/3xvmgKxewp
Titus sees a “stigma” attached to the gambling industry — even though it provides jobs and generates tax revenue — that makes it a target for lawmakers. Her preference is to keep the states in control of legal sports betting in the U.S. and to keep federal meddling to a minimum.
The Tonko-Blumenthal legislation also goes beyond just limits on advertising. Among other things, it would set federal standards for different parts of the business, such as how often a player could deposit with an online sportsbook.
“I don't think that's the way to approach it,” Titus said of the restrictions. “I certainly support responsible gaming. The industry does. They've taken bold steps, going back to the 90s, to regulate themselves, and I think that's better, to have self-regulation or state regulation, not have the federal government get involved at this level.”
The comments from Titus suggest the SAFE Bet Act will have its fair share of opponents in Congress. While passage was never a certainty, what does seem certain is that there will be political pushback in some form.
"What the Supreme Court did explicitly lay out in their decision … was that Congress retains the right to regulate sports gambling," Tonko said last week. "So that's what we're all gathered here today to announce, as an effort that we're going to embrace."
"It's mind-boggling to me in the arrogance of (the feds) saying ‘we know more than you do’ without working on things together that we have already reached out to work on to make things better for our citizens in all the states that legalize sports wagering,” - Dave Rebuck 9/19
— Ryan Butler (@ButlerBets) September 19, 2024
Titus has fought against federal intervention in the gaming industry before, such as by proposing legislation that would repeal Washington's 0.25% tax on sportsbook handle. She has also butted heads in the past with Blumenthal over a bill proposing to devote handle tax revenue to problem gambling programs.
Titus is not alone in her reservations about the SAFE Bet Act either. In addition to state lawmakers and regulators who may not want the federal government peering over their shoulders, the industry was quick to pan the legislation.
“Six years into legal sports betting, introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks unique to their jurisdictions, and have continued to iterate as their marketplaces evolve,” said Chris Cylke, the American Gaming Association’s senior vice president of government relations.
