Rep. Paul Tonko (D-NY) introduced his SAFE Bet Act to curtail sports betting advertising, use of AI, and reduce gambling related harms.
- Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT) introduced a bill for federal sports betting regulations
- The Supporting Affordability & Fairness with Every Bet Act will establish national rules for sports betting advertising, affordability, and the use of artificial intelligence.
- Both stress that the act is not a ban on gambling
Two national U.S. lawmakers are hoping a newly introduced piece of gambling legislation will help reduce sports betting harms in this country.
Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT) today officially introduced the Supporting Affordability & Fairness with Every Bet Act (SAFE Bet Act), a piece of legislation to reduce gambling addiction, gambling related harms, and establish minimum federal standards for sports betting advertisements and use of artificial intelligence.
“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,” Blumenthal said.
Setting National Advertising, AI Standards for Sports Betting
A large part of the SAFE Bet Act will be to set national advertising standards for sports betting operators. Tonko noted restrictions will be placed on advertisements to limit them to times and spaces where children are not likely to be in the audience. Restrictions will also be set on celebrities endorsing particular sportsbooks or ad types, similar to Canadian restrictions that prohibit athletes and celebrities from endorsing sports betting companies.
Tonko’s SAFE Bet Act requires sports betting operators to comply with minimum federal standards in three categories: Advertising, affordability, and artificial intelligence.
If approved, users would not be able to deposit more than five times during a 24-hour period and would require operators to conduct “affordability checks” before accepting large wagers from customers. Additionally, it prohibits the use of credit cards to fund sports betting accounts.
Tonko likened the restrictions to state laws that prohibit the sale of alcohol to those who are visibly intoxicated. Sports betting should not be offered to those who are exhibiting signs of problem gaming and addiction, he said.
The bill would also prohibit the use of artificial intelligence to track player’s gambling habits, create customized promos, and new gambling products, such as microbets. The bill would not allow microbets to continue in the U.S.
Sportsbook companies use artificial intelligence to capture user data to create customized promotions and offers to keep customers playing on their platforms, chasing losses, and losing more money, Blumenthal said.
“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,” he said.
It would also institute a national ban on prop bets for collegiate and amateur athletes.
Bill Already Facing Opposition
As Tonko and Blumenthal presented the bill this afternoon, iDevelopment & Economic Association (iDEA), an association representing the interests of the regulated U.S. online gaming and sports betting industry, published a statement in opposition 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.”
According to the association, the bill’s prohibition on the use of AI technologies and certain promotions ignores the importance of innovation in creating “a secure and safe environment for sports bettors.”
The restriction of legitimate tools used by sports betting companies to ensure the safety of its players will drive customers to unregulated and illegal markets, the association noted in its release.
“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.”
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In recent years, the landscape of sports betting in the United States has undergone significant changes. With the legalization of sports betting in several states, there has been a growing concern among lawmakers about the need for federal regulations to ensure the integrity of the industry and protect consumers.
Several U.S. lawmakers have been advocating for federal regulations on sports betting to address issues such as problem gambling, match-fixing, and underage betting. These lawmakers argue that a uniform set of regulations at the federal level would provide consistency and clarity for both operators and consumers, while also helping to prevent issues that may arise from a patchwork of state laws.
One of the main concerns driving the push for federal regulations is the potential for corruption in sports betting. Without proper oversight, there is a risk that individuals or organizations could manipulate the outcomes of games for financial gain. By implementing federal regulations, lawmakers hope to establish safeguards to prevent such misconduct and protect the integrity of sports competitions.
Another key issue that federal regulations could address is problem gambling. With the expansion of sports betting across the country, there is a growing concern about the potential for an increase in gambling addiction and related problems. Federal regulations could include measures to promote responsible gambling practices, such as mandatory self-exclusion programs and limits on betting amounts.
Additionally, federal regulations could help to address concerns about underage betting. With online sports betting platforms becoming increasingly popular, there is a risk that minors could easily access and participate in gambling activities. By implementing age verification requirements and other safeguards, federal regulations could help to prevent underage individuals from engaging in sports betting.
Overall, U.S. lawmakers advocating for federal regulations on sports betting believe that such measures are necessary to ensure a safe and fair environment for all participants in the industry. By establishing a comprehensive set of rules and standards, federal regulations could help to protect consumers, preserve the integrity of sports competitions, and promote responsible gambling practices.
