Since PASPA was overturned in 2018, the U.S. government has largely stayed out of sports betting legislation and regulation, allowing the 38 U.S. states that have legalized it to handle it as they see fit.
That could be changing soon.
U.S. Rep. Paul Tonko (D-New York) and Sen. Richard Blumenthal (D-Connecticut) introduced a bill on Thursday that aims to stop sports betting operators from using problem-gambler targeting practices.
“This relationship between the gambling industry and sports has reached intolerably dangerous levels and it’s well past time for Congress to step up and make a difference,” Tonko said during a press conference in Washington, D.C.
The Supporting Affordability and Fairness with Every Bet Act (SAFE) was first proposed in March and builds on Tonko’s Betting on Our Future Act from last year. Tonko, a long-time opponent of addictive disorders, says the Supreme Court’s ruling from six years ago supports Congressional action.
“(SAFE Bet Act) bill is the first comprehensive public health law that requires states that have legalized mobile sports betting to ensure operators are meeting minimal federal standards in … advertising, affordability, and artificial intelligence,” Tonko said.
The 3-step approach
The SAFE Bet Act calls for several federal initiatives that would put each U.S. betting market under the same umbrella.
Tonko said his legislation would keep sports betting operators from advertising during hours children could be watching. He wants to put an end to celebrities “teaching you their favorite parlays.”
The legislators had public health representatives speak at the press conference, and they compared sports betting ads to cigarette ads a few decades ago.
As for affordability, Tonko likened it to state laws that keep customers from being over-served alcohol.
The bill calls for sportsbooks to limit account deposits to five times in 24 hours, prohibit credit card deposits, and require operators to conduct affordability checks before accepting wagers of more than $1,000 in a 12-hour period and $10,000 in a 30-day window.
The final section of the SAFE Act, which Blumenthal called the most “appalling and frightening” takes aim at AI, which sportsbooks used to entice customers with promotions. The bill would authorize federal data collection and set a standard for what data sports betting operators can obtain on customers.
Tonko said that AI is fueling micro-betting, which he said studies have found is two-and-a-half times more likely to lead to problem gambling in younger bettors, especially men.
“These practices are predatory and need to stop,” Tonko said. “Our bill will accomplish that.”
Other goals
Blumenthal made it clear that the objective is not to prohibit legal sports betting in the U.S. or tell states what to do. They want the bill to make it better for people who do place wagers.
“We’re banning practices that exploit and abuse people who legitimately want to gamble,” Blumenthal said. "We’re not making gambling illegal. We’re stopping the promotions, enticements, bonuses, and credits that target losers. Right now, the gambling industry methodically and relentlessly targets losers because that’s where the money is.”
The SAFE Bet Act would also ban college player props nationally, which NCAA president Charlie Baker called for in March. Since then, only Maryland, Ohio, Vermont, and Louisiana have complied with Baker’s request.
The SAFE Bet Act would also require a Surgeon General report examining public health impacts. It would create a national self-exclusion list that the legislators feel is greatly needed.
“States have legalized gambling but they failed to protect citizens from those excesses, abuses, and exploitation,” Blumenthal said. “State regulation is faint-hearted and half-baked. That’s why we need a national standard … to take back an industry that is out of bounds.”
Immediate reaction
The American Gaming Association, a trade group representing the legal gaming industry, released a statement following the bill introduction in opposition to the federal legislation attempt.
“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,” Chris Cylke, AGA senior vice president of government relations, said.
“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.
