U.S. Lawmakers Rep. Paul Tonko and Sen. Richard Blumenthal have officially announced the introduction of a bill that will look to set federal regulations for sports betting across the United States.
The Supporting Affordability & Fairness with Every Bet Act (SAFE Bet Act) aims to reduce gambling related harms, addiction, and sets out federal standards for all sports betting operations both online and in retail locations.
SAFE Bet Act Key Highlights
Regulation
- States must apply to the Department of Justice to offer sports betting
- Penalties for states that fail to apply
- States with legal sports betting must comply with new standards within one year
Advertising
- Sports betting ads banned from 8am to 10pm
- No ads during live sporting events
- No ads explaining how wagers work
- No ads encouraging the use of gambling products
- Celebrity and athlete endorsements restricted
Artificial Intelligence
- AI must not be used to monitor a customer’s playing habits
- AI cannot create personalized offers for customers
Bet Types
- Ban on proposition wagers for collegiate and amateur athletes
- Ban on microbets
Affordability
- Customers limited to 5 deposits in a 24 hour period
- Affordability checks required for large deposits
- Ban on the use of credit cards for sports betting
All US states with legal sports betting markets currently in operation will have one year to comply with federal standards once the legislation is enacted.
Speaking at a press conference announcing the legislation Senator Blumenthal said:
“This is not a ban on gambling, but to take back control over an industry that is out of bounds. Literally operating outside the bounds of decency and respectability.”
He added that AI is not being used for good:
“Right now, the gambling industry methodically and relentlessly targets losers, that’s where the money is. People who lose are losing to the benefit of the gambling industry.”
Tonko added:
“We need to address addictions of all kinds. If not, we’re failing in our responsibilities.”
Opposition
Immediately following the press conference the iDevelopment & Economic Association (iDEA), an group representing the interests of the regulated U.S. online gaming and sports betting industry, published a statement voicing its opposition to the SAFE Act.
“As a leading trade association representing the interests of the growing and highly regulated U.S. online gaming and sports betting industry, iDEA is deeply concerned by the introduction of the SAFE Bet Act. While we strongly support efforts to promote responsible gaming and player protections, this legislation represents an unnecessary and harmful federal overreach into an area that has been successfully regulated at the state level since the Supreme Court’s decision to overturn the federal sports betting ban in 2018.
The SAFE Bet Act’s blanket, one-size-fits-all requirements on advertising, affordability checks, and artificial intelligence stifle the autonomy of states and tribal governments, many of which have implemented their own robust regulatory frameworks tailored to the needs of their constituents. These measures not only infringe on states’ rights but also risk undermining the operational flexibility that has allowed the legal sports betting industry to thrive, create jobs, and generate critical tax revenue that supports education, infrastructure, and other vital services.”
It added that the federal government should instead look to take action against offshore sports betting operators:
“Instead of imposing unnecessary restrictions on legal, state-licensed sport betting operators, Congress should use its power to collaborate with states to shut down illegal offshore sportsbooks that brazenly defy federal law.”
The American Gaming Association (AGA) also released its own statement in opposition of the SAFE Bet Act:
“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.
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.”
Image credit: Paul Tonko
Olivia has worked as an editor and writer for major brands across multiple niches. She now focuses on the iGaming and sports betting industries.
In a recent development, US lawmakers have introduced a bill that aims to establish federal regulation of sports betting in the country. The bill, known as the Sports Betting Market Integrity Act of 2021, is a bipartisan effort led by Senators Chuck Schumer and Mitt Romney.
The introduction of this bill comes in response to the growing popularity of sports betting in the United States, particularly following the Supreme Court’s decision to overturn the Professional and Amateur Sports Protection Act (PASPA) in 2018. Since then, several states have legalized sports betting, leading to a patchwork of regulations across the country.
The Sports Betting Market Integrity Act seeks to create a uniform regulatory framework for sports betting at the federal level. The bill would establish minimum standards for sports betting operators, including measures to prevent underage gambling, protect the integrity of sporting events, and ensure consumer protection.
One of the key provisions of the bill is the creation of a national sports betting clearinghouse, which would be responsible for monitoring betting activity and sharing information with sports leagues and law enforcement agencies to detect and prevent match-fixing and other forms of corruption.
Additionally, the bill would require sports betting operators to use official league data for in-play wagers, in order to ensure the accuracy and integrity of betting markets. It would also prohibit certain types of bets that are deemed to be particularly susceptible to manipulation, such as bets on individual player performances.
Supporters of the bill argue that federal regulation is necessary to address the challenges posed by the current patchwork of state regulations and to protect consumers and the integrity of sports competitions. They also point to the potential economic benefits of a regulated sports betting market, including increased tax revenue and job creation.
However, opponents of the bill argue that it represents an unnecessary expansion of federal government power and infringes on states’ rights to regulate gambling within their borders. They also raise concerns about the potential impact on small businesses and competition in the sports betting industry.
The introduction of the Sports Betting Market Integrity Act is just the latest development in the ongoing debate over how best to regulate sports betting in the United States. As lawmakers continue to grapple with this issue, it remains to be seen whether a federal regulatory framework will ultimately be enacted or if states will continue to take the lead in regulating this rapidly growing industry.
