The American Gaming Association (AGA) is describing a new federal sports betting bill introduced by Congressman Paul Tonko and U.S. Senator Richard Blumenthal as a “slap in the face to state legislatures and gaming regulators.”
Chris Cylke, SVP for AGA, said the “heavy-handed” federal prohibitions were a “slap in the face” to state legislatures and gaming regulators. Oppositionists argue that states with regulated sports wagering are already doing enough to protect bettors from gambling addiction.
“Today’s regulated sports wagering operators are contributing billions in state taxes across the U.S., 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.”
Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act would require licensed operators to comply with federal standards
The Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act was introduced last Thursday and would require U.S. states to ensure that licensed operators comply with minimum federal standards in three categories: advertising, affordability, and Artificial Intelligence (AI).
The SAFE Bet Act 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 proposed legislation would also prohibit sportsbook advertising between 8 a.m. and 10 p.m., and during live sporting events. Bonuses would be banned as well.
Additionally, operators would not be able to accept more than five deposits from a customer in a 24-hour period. They must conduct “affordability checks” on customers before accepting wagers in excess of $1,000 in a 24-hour period. This also means $10,000 in a 30-day period.
American Gaming Association says SAFE Bet Act would prohibit deposits via credit card
Furthermore, deposits via credit card will also be prohibited. In fact, the bill would prohibit the use of AI to track individual player’s gambling habits. It would create individualized offers and promotions to customers. Another possibility is the creation of 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 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.”
Substance Abuse and Mental Health Services Administration (SAMHSA) would conduct a National Sports Betting Survey
Furthermore, 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 authorize the Substance Abuse and Mental Health Services Administration (SAMHSA) to conduct a National Sports Betting Survey.
The survey would be used to examine use rates and outcomes of sports betting nationwide. It would also help to maintain and administer a national self-exclusion list.
If approved, the bill becomes effective one year after enactment. States that have existing sports betting markets have one year to achieve compliance with the proposed rules.