Online Gambling Falls on the U.S. Senate's Radar

As the U.S. online sports betting and casino gambling industries continue to grow, concerns have grown as well that maybe things have gone too far too fast. Most of these concerns are centered on the possible increase in underage gambling and the exacerbation of problem gambling issues.

It's important to note that decision-making related to online gambling was put in the hands of the states when the SCOTUS overturned the nation's ban on sports betting in 2018. As of today, the state legislatures in 39 states have gone forward and legalized retail and or online sports betting. Not only has sports betting become a thing in 39 states, it has become a big thing. This might well be the reason that the U.S. Senate has started scrutinizing the sports betting industry.

US Senate Judiciary Committee Holds Hearing

On December 17, 2024, the US Senate Judiciary Committee convened a hearing they called "America’s High-Stakes Bet on Legalized Sports Gambling.” It turned out to be an investigation of sorts into the minefield that was supposedly developing due to the proliferation of sports betting in America. Witnesses were called to testify regarding the darker side of sports betting.

This hearing comes on the heels of the Safe Bet Act, which was presented in the Senate in September. While the law never got traction, it did seek to address things like disallowing the use of credit cards to fund online gambling accounts, the involvement of AI by operators, setting betting limits, and the need for federal problem gambling initiatives.

While the Safe Bet Act appeared to be a knee-jerk reaction to current issues within the sports betting industry, it did bring up issues that warrant further consideration. Does that consideration belong at the federal or state levels?

About the Witness Testimony

Five witnesses were called during the hearing. What was notable about the witness list is there was no one there to testify on behalf of the actual sports betting industry. That was problematic to American Gaming Association SVP of Strategic Communications Joe Maloney, who told the press:

"This unfortunate exclusion leaves the Committee and the overall proceeding bereft of testimony on how legal gaming protects consumers from the predatory illegal market and its leadership in promoting responsible gaming and safeguarding integrity. We remain committed to robust state regulatory frameworks that protect consumers, promote responsibility, and preserve the integrity of athletic competition.”

None of the witnesses who did testify seemed to support a reinstated full ban on sports betting. It was NCAA President Charlie Baker, who told the committee that he would be satisfied if the Senate would merely place some type of restrictions on prop betting on individual player performance. Also, Johnson Bademosi, representing the National Football League Players Association, stated that he would like to see some kind of ban on bets that involved "negative" results.

If the federal government starts delving further into the sports betting industry, there is going to be some kickback from the states. New Jersey is already preparing to defend its right to legislate all online gambling in the Garden State.