New York Representative Paul Tonko and Connecticut Senator Richard Blumenthal have introduced the SAFE Bet Act, which seeks to create a federal framework for regulating U.S. sports betting and take back control.
Since the repeal of PASPA in 2018, 38 states have passed sports betting laws. Still, some lawmakers and public health officials now argue that this model is unsustainable and that minimum federal standards are necessary to unify standards and protect players from “predatory” practices.
In Tonko’s view, the betting industry “has hijacked Americans’ love of sports by recklessly peddling a known addictive product. Our bill puts an end to those dangerous practices.”
The SAFE Bet Act
The SAFE Bet Act, entitled Supporting Affordability and Fairness with Every Bet (SAFE), aims to regulate sports betting operators and ensure minimum standards across the industry.
The Act focuses on affordability, advertising, and artificial intelligence (AI). It details that states wishing to offer sports betting first must apply to the US attorney general, proving they meet the minimum federal protections detailed in the Act.
Advertising Under Fire
Most worldwide gambling jurisdictions have strong advertising controls because betting ads normalise and encourage the activity and are often seen by vulnerable audiences.
However, the U.S. sports industry operates with few advertising controls, spending over US$1.6 billion (£1.2bn) annually on betting advertising across all media. And that’s on top of the millions spent on the 383 sports sponsorship deals brokered this year by gambling brands headquartered in the Americas.
The SAFE Bet Act proposes banning TV advertising between 8 a.m. and 10 p.m. and during live sports events. It would also prohibit advertising that induces gambling with bonuses and advertisements that explain how to gamble.
While not included in the final text, Tonko also criticised U.S. influencer and ambassador deals, saying, “Celebrities should not be teaching you their favourite parlay.”
Affordability Checks
Likely to be controversial with both consumers and operators—as seen with the UK’s experience of introducing affordability checks—the Act proposes prohibiting operators from accepting more than five deposits from one customer in 24 hours, preventing credit card use, and requiring affordability checks on consumers who spend US$1,000 (£760) in 24 hours or US$10,000 (£7,600) in 30 days. It would also require operators to check if players are self-excluded before accepting their money.
AI and Player Tracking
This part of the Act focuses on how operators use AI to target players. It would prohibit the use of AI to track individual player habits and create personalised bonuses and product offers.
Public Health and Research
The bill would also authorise the Substance Abuse and Mental Health Services Administration (SAMHSA) to conduct a National Sports Betting Survey and create a nationwide self-exclusion system.
Lastly, it would also introduce an outright ban on all college prop betting, which the National Collegiate Athletic Association has spent the last year campaigning for in efforts to protect student-athletes from harassment.
Well-Intentioned, But Misguided?
The industry response to Tonko and Blumenthal’s bill has been swift. The AGA’s senior vice president of government relations, Chris Cylke, said:
“Six years into legal sports betting, introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks unique to their jurisdictions and have continued to iterate as their marketplaces evolve”.
Representative Dina Titus, who has been a long-time proponent of legal gambling and represents the Nevada district, which includes the Las Vegas Strip, has also spoken out:
“While the SAFE Bet Act is perhaps well-intentioned, pre-empting state gaming regulators by outlawing most forms of advertising and restricting the types and methods by which customers can place bets is a misguided approach.
“Offering customers a wide variety of choices, enhancing their gaming experience, and advertising legal operators are essential ways to compete with the illegal market.”
