New Bill Proposes Strict Federal Regulations on Sports Betting

Lawmakers Propose Tough Federal Regulations on Sports Betting with SAFE Bet Act

The rapidly expanding sports betting industry in the United States faces a potential overhaul as lawmakers introduce sweeping new federal regulations. The proposed SAFE Bet Act aims to establish a uniform federal standard for sports betting, emphasizing consumer protection and tighter controls on advertising and AI use in gambling. With public health concerns at the forefront, the bill seeks to address the rising tide of gambling addiction and ensure a safer betting environment. Discover the key aspects of the SAFE Bet Act and how it could reshape the future of sports betting in the U.S.

Federal Legislation Seeks to Rein in Sports Betting with Nationwide Standards

Lawmakers on Capitol Hill have unveiled the Supporting Affordability and Fairness with Every Bet Act, or SAFE Bet Act, a bill aimed at imposing strict federal oversight on the booming sports betting industry. Introduced by Senator Richard Blumenthal (D-CT) and Representative Paul Tonko (D-NY), the proposed legislation seeks to create a national framework for sports betting regulation, impacting the 38 states where it is currently legal.

The SAFE Bet Act would require states to reapply for permission to offer sports betting under new federal standards enforced by the U.S. Department of Justice. Approval from the Attorney General would be mandatory, and states would need to renew their permission every three years.

“State regulation is faint-hearted and half-baked,” Senator Blumenthal said during the bill’s announcement. “We need a national standard to regain control over an industry that is out of bounds, not to ban gambling but to regulate it effectively.”

Representative Tonko echoed Blumenthal’s concerns, highlighting the urgent need to tackle gambling addiction. “We need to address addictions of all kinds. If not, we’re failing in our responsibilities,” he added, emphasizing the public health implications of unchecked gambling growth.

Opposition Mounts Against Federal Oversight

The proposal has already sparked backlash from the gambling industry, which argues that federal intervention undermines the regulatory authority of individual states. Chris Cylke, Senior Vice President of Government Relations for the American Gaming Association, criticized the SAFE Bet Act, stating that it disregards the comprehensive regulatory frameworks that states have carefully developed over years.

“Introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have invested years in crafting thoughtful, effective regulations,” Cylke said. “Federal oversight would disrupt successful state-level models and introduce unnecessary complications.”

Key Provisions: Advertising Limits, Affordability Checks, and AI Restrictions

The SAFE Bet Act targets three critical areas of concern: advertising, affordability, and the use of artificial intelligence (AI) in gambling. Under the proposed regulations, sports betting advertisements would be restricted between 8 a.m. and 10 p.m. and banned during live sporting events. Common industry promotions, such as “bonus bets” and “no sweat bets,” would also be prohibited.

The bill introduces strict affordability checks, mandating that operators evaluate bettors who wager more than $1,000 in a single day. Players whose gambling exceeds 30% of their income would be barred from placing further bets. Additionally, the use of credit cards for gambling transactions would be banned, and bettors would be limited to five deposits within a 24-hour period.

The legislation also calls for the creation of a national self-exclusion list, a tool already in use in markets like the UK and Australia, requiring operators to screen customers against a centralized database before accepting wagers.

A significant focus of the bill is the restriction of AI tools used by gambling companies to track individual betting habits and tailor personalized offers. Highlighting microbetting as a particularly dangerous form of gambling, Blumenthal called the use of AI in promoting these bets “appalling and frightening.”

Industry Pushback and Public Health Advocacy

The introduction of the SAFE Bet Act has ignited strong opposition from industry stakeholders, who view the proposed regulations as overreaching. Representative Dina Titus (D-NV), a long-time advocate for gaming, argued that the bill’s broad restrictions would stifle innovation and harm existing state frameworks. “The SAFE Bet Act’s preemption of state regulators is outdated and unwarranted,” Titus said, adding that its advertising and betting limitations would do more harm than good.

Despite the industry pushback, Blumenthal and Tonko were supported at their press conference by representatives from the Northeastern University Public Health Advocacy Institute and families affected by gambling addiction. The coalition stressed the urgency of federal action, framing the bill as essential for protecting vulnerable populations.

“This bill is not just about regulation; it’s about saving lives,” Blumenthal said. “We must stop the exploitation of young people and curb the harmful impacts of unregulated advertising and unchecked gambling.”

The SAFE Bet Act represents a bold attempt to impose federal oversight on the sprawling U.S. sports betting market. While proponents argue it is a necessary step to protect consumers and combat gambling addiction, opponents believe it undermines the progress made by state regulators. As debate heats up, the future of U.S. sports betting hangs in the balance, with potential changes that could redefine the landscape of gambling regulation nationwide.