US Lawmakers Propose New Federal Sports Betting Bill

US Lawmakers Tonko and Blumenthal to Unveil Federal Sports Betting Legislation

US lawmakers Paul Tonko and Richard Blumenthal are making waves in the sports betting world with a new federal bill aimed at reining in the rapidly expanding industry. Announced during a press conference set for September 12, this legislation seeks to impose stricter controls on sports wagering, reshaping the regulatory landscape. As the popularity of sports betting soars across the nation, these proposed changes could have far-reaching effects on operators, bettors, and state governments.

Introducing the SAFE Act: A New Era for US Sports Betting

Representatives Tonko and Blumenthal have previously shown commitment to tightening regulations around sports betting. The upcoming bill, expected to be similar to Tonko’s Supporting Affordability and Fairness with Every Bet (SAFE) Act, aims to create a federal framework that would place significant controls on an industry currently regulated on a state-by-state basis. This initiative marks a notable departure from the status quo established after the US Supreme Court’s 2018 decision to overturn PASPA (Professional and Amateur Sports Protection Act), which had federally banned sports betting.

Since PASPA’s repeal, legal sports betting has exploded, with states racing to launch their own regulated markets. New Jersey, which led the charge alongside then-Governor Chris Christie, was the first to offer digital betting, kickstarting a trend that has swept the nation. However, Tonko and Blumenthal argue that the lack of consistent regulation poses significant risks, including problem gambling, unregulated advertising, and insufficient consumer protections.

Key Provisions of the Proposed Legislation

The new federal legislation is set to address several critical issues in the sports betting landscape. Among the proposed measures are advertising guidelines, affordability checks, and a ban on the use of AI to monitor and exploit gamblers’ habits. These initiatives are designed to protect vulnerable populations and ensure that sports betting is conducted responsibly.

According to a fact sheet from the SAFE Act, specific words and phrases would be banned from advertising, with stringent limits on when and where sports betting companies can advertise, particularly on television. This would dramatically change the way sportsbooks currently market their services, which often targets audiences during live sports events.

Moreover, the legislation seeks to impose daily deposit limits, restrict certain bet types, and establish a national self-exclusion list, offering bettors a centralized way to self-regulate their gambling activities. Perhaps most controversially, the bill proposes a “general prohibition on sports betting,” requiring states to seek federal permission before offering legal sports betting. This move could fundamentally alter the dynamic between federal oversight and states’ rights, reigniting debates over gambling regulation.

Industry and Public Health Advocates Weigh In

The press conference will also feature representatives from the Public Health Advocacy Institute at Northeastern University School of Law, highlighting the public health concerns associated with unrestricted sports betting. As betting ads continue to saturate media channels, public health experts are increasingly vocal about the potential for these ads to contribute to problem gambling, particularly among young adults.

Tonko’s earlier version of the SAFE Act, released in the spring, specifically addressed these concerns by outlining the need for stricter ad regulations and enhanced consumer protections. By introducing these changes, Tonko and Blumenthal aim to balance the industry’s growth with the need for responsible gambling measures.

The introduction of this federal sports betting legislation could mark a pivotal moment in the US gambling industry. While the states have enjoyed relative freedom in shaping their sports betting markets post-PASPA, Tonko and Blumenthal’s proposed bill represents a significant push toward federal oversight. With measures designed to protect consumers, control advertising, and create a safer betting environment, the SAFE Act could redefine the rules of the game. As the debate unfolds, industry stakeholders, lawmakers, and bettors alike will be closely watching how this legislative effort progresses and the potential impact it may have on the future of sports betting in the United States.