American Gaming Association rejects new federal sports betting bill

A new federal bill introduced by Congressman Paul Tonko and US Senator Richard Blumenthal to improve consumer protections and standards across the sports betting industry has been described by the American Gaming Association as a “slap in the face to state legislatures and gaming regulators”.

The Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act was introduced last Thursday and would require US states to ensure that licensed operators comply with minimum federal standards in three categories - advertising, affordability, and Artificial Intelligence (AI).

The bill would establish a general nationwide prohibition on sports betting, creating exceptions for states that have been approved by the Department of Justice (DOJ) to operate a sports betting program. Applicants seeking DOJ approval must include detailed attestations to show how the state has met the minimum federal standards.

The legislation proposed by the septuagenarians would also prohibit sportsbook advertising between 8am and 10pm, and during live sporting events, with inducements such as bonuses also banned.

Operators will not be able to accept more than five deposits from a customer in a 24-hour period and will be required to conduct ‘affordability checks’ on customers before accepting wagers in excess of $1,000 in a 24-hour period, or $10,000 in a 30-day period. Deposits via credit card will also be prohibited.

The bill would also prohibit the use of AI to track individual player’s gambling habits, create individualized offers and promotions to customers, or create gambling products, such as microbets.

“Since their inception, sports and sporting events have been a chance for family, friends, and strangers to gather together in celebration of beloved teams and athletes in a great American pastime,” said Congressman Tonko. “But now, every single moment of every sporting event across the globe has become a betting opportunity.

“That’s resulted in a frightening rise in gambling disorder, which has in turn enacted a horrific toll on individuals, many of whom have lost their home, job, marriage, and their lives. We have a duty to protect people and their families from suffering the tremendous harm related to gambling addiction. Our SAFE Bet Act gets the job done and gives sports back to the American people.”

Senator Blumenthal added: “This bill is a matter of public health. It is a matter of stopping addiction, saving lives, and making sure that young people particularly are protected against exploitation.”

The bill would authorise the Substance Abuse and Mental Health Services Administration (SAMHSA) to conduct a National Sports Betting Survey to examine use rates and outcomes of sports betting nationwide, and to maintain and administer a national self-exclusion list.

If approved, the bill becomes effective one year after enactment, with states that have existing sports betting markets having one year to achieve compliance with the proposed rules.

American Gaming Association senior vice president of government relations Chris Cylke said the “heavy-handed” federal prohibitions were a “slap in the face” to state legislatures and gaming regulators.

“Today’s regulated sports wagering operators are contributing billions in state taxes across the US, protecting consumers from dangerous neighborhood bookies and illegal offshore websites, and working diligently with over 5,000 state and tribal regulators and other stakeholders to ensure a commitment to responsibility and positive play,” said Cylke.

“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.”