U.S. Congress Looking to Regulate Online Sports Betting Industry

In May 2018, The United States Supreme Court lifted the country's ban on sports betting and certain forms of online gambling. The intention was to make such issues something the states would control. To date, that is exactly what has taken place. However, members of the U.S. Congress have recently announced their intention to get involved in the online sports betting industry at the federal level.

SAFE Bet Act Introduced

Sen. Richard Blumenthal of Connecticut and House Rep. Paul Tonko of New York have formally announced they will be proposing a revised version of the SAFE Bet Act. This legislation was originally presented by Rep. Tonko in March of 2024. The purpose of this legislation is to federal put regulations in place for the protection of U.S. Citizens. They are proposing this legislation under the guise that online sports betting is a public health issue, requiring the setting of minimum federal standards.

The Focus of the SAFE Bet Act

After reading through this legislation, it becomes clear that Sen. Blumenthal and Rep. Tonko are concerned about the use of deceptive advertising tactics by online sports betting operators. There are also concerns related to the future use of artificial intelligence (AI). Here's a look at some of the key points discussed in this proposal:

• Online sports betting operators would be restricted from advertising during live sporting events, including regular season games and special events like the Super Bowl


• Operators would be prohibited from promo programming, using phrases like “bonus,” “no sweat,” “bonus bets” or "odds boosts."


• Operators would be required to limit customers to no more than five (5) deposits in a single wagering day


• “Affordability checks” of customers would be required before the acceptance of large wagers (amount limit TBD)


• Deposits via credit cards (VISA, MasterCard, Amer Exp, etc..) would be prohibited


• Operators would be prohibited from using AI to track players’ gambling preferences and habits. This practice would likely be employed to help operators customize bonus promos and betting content for each customer


• The Substance Abuse and Mental Health Services Administration would be charged with collecting, analyzing, and reporting data related to online sports betting nationwide
  

Why Congress Feels Compelled to Get Involved

According to Sen. Blumenthal, several U.S. online sports betting operators might be complicit in their involvement in predatory advertising practices. He had specific concerns related to top operators like DraftKings, FanDuel, BetMGM, ESPN Bet, Fanatics, and Caesars SportsBook and Casino.

Giving fuel to Blumenthal's argument was a report recently released by the National Council on Problem Gambling. According to the report, more than 7 million Americans had expressed concerns about having a significant gambling problem. Additionally, the National Gambling Helpline reported receipt of 54k+ calls over the past 12 months. That represents an increase of 24% over the prior 12-month period.

It's worth noting that this is not the first time Sen. Blumenthal has gotten involved with presenting problem gambling-related legislation. In January of this year, he introduced the Gambling Addiction Recovery, Investment and Treatment Act. This legislation, which has yet to pass, would direct federal funds to problem gambling initiatives.