Two US lawmakers have taken a significant step toward reshaping the American sports betting industry by introducing a federal bill aimed at regulating digital sports wagering across the nation.
This legislation, known as the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, was proposed by Rep. Paul Tonko (D-New York) and Sen. Richard Blumenthal (D-Connecticut) in response to the exponential growth of the sports betting industry in the past few years.
With the Supreme Court’s 2018 decision to strike down the federal ban on sports betting (the Professional and Amateur Sports Protection Act), sports betting quickly became popular across the US, being legalized in 38 states. Despite this success, many lawmakers and public health advocates believe that federal oversight is required to address several issues relating to advertising, the use of artificial intelligence (AI), and affordability.
The SAFE Bet Act aims to standardize regulations across the country, providing a framework for all states where sports betting is legalized to follow.
Tonko and Blumenthal both emphasized the need for federal regulations to ensure that consumers are protected and that sports betting remains a recreational activity and not a source of financial hardship. According to Tonko, “The relationship between gambling and sports has reached intolerably dangerous levels,” mentioning the use of AI technology by operators to track betting habits for targeted promotions.
The lawmakers are also pushing back against what they consider exploitative advertising practices, which have inundated sports fans and casual bettors with promotions and enticements to get them on the sports betting websites.
There has been pushback from operators, though. Many sites listed as the best offshore casinos in 2024 state that they maintain a balanced approach to advertising. These casinos ensure their promotions don’t contribute to irresponsible gambling habits. However, as these sites are licenced by overseas bodies and not within the US, some US regulations do not apply to them.
A key focus of the bill for US-based sites the implementation of measures that ensure affordability. The bill recommends a limit to customer deposits - five deposits in 24 hours - and that operators must only allow wagers exceeding $1,000 if customers can afford it. At offshore sites, players often have the option to place high-stakes bets, with fewer checks about affordability made on players’ accounts.
The bill also addresses concerns around advertising, especially aggressive marketing tactics used by sportsbooks. Under the SAFE Bet Act, sportsbooks will not be allowed to run promotions during live sporting events to prevent targeting vulnerable gamblers and bettors.
These proposed restrictions align sports betting advertising with those of other regulated industries, like the tobacco industry, where public health concerns resulted in strict advertising guidelines.
Not everyone is in favor of the proposed SAFE Bet Act. The American Gaming Association (AGA) has strongly opposed it, with Senior Vice President of Government Relations Chris Cylke calling the bill a “slap in the face” to state regulators who have developed stringent state-level frameworks for sports betting regulation. Rep. Dina Titus from Nevada agrees with these sentiments, calling the bill “outdated and unwarranted”.
Despite this pushback from operators and those in favor of state regulation, lawmakers are sticking to their stance. They argue that the current state-by-state approach is insufficient to address public health concerns due to the exponential growth of sports betting.
The SAFE Bet Act demands federal oversight, aiming to set a national standard that will protect consumers while also allowing states to enforce stricter regulations if they choose.
