Publication
Nationwide Gambling Legislation on the Horizon
U.S. Representative Paul Tonko and Senator Richard Blumenthal have renewed their push to bring nationwide regulation to sports betting through the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act. The proposed legislation aims to establish a federal standard for gaming operators, framing sports betting as a public health crisis and targeting three key areas of regulation: (1) advertising, (2) affordability, and (3) artificial intelligence.
Advertising Restrictions
The SAFE Bet Act would ban sportsbooks from advertising during live sporting events and place further restrictions on “risk-free” betting promotions, seeking to reduce the influence of aggressive marketing on vulnerable individuals.
Affordability Measures
The legislation would impose significant affordability checks on players, including limiting deposits to no more than five times within a 24-hour period. For larger bets, operators could be required to conduct due diligence to determine whether patrons can afford their wagers. Additionally, the Act would prohibit funding bets with credit cards, aiming to curb risky betting behaviors.
Regulation of Artificial Intelligence
The Act would also restrict the use of artificial intelligence by gaming operators, particularly when used for individualized promotions or to create or alter gambling products. This measure seems designed to prevent operators from exploiting patrons’ behavioral data.
Additional Safeguards
Partnering with the Substance Abuse and Mental Health Services Administration (SAMHSA), the SAFE Bet Act would mandate health warnings on sports betting platforms similar to those required for tobacco and alcohol products. The legislation also seeks to create a coordinated, nationwide self-exclusion list for problem gamblers, allowing individuals to ban themselves from betting across all 50 states, a significant shift from the current state-specific exclusion lists.
Constitutional Challenges Loom
The SAFE Bet Act faces a challenging path forward. Just six years ago, the Supreme Court struck down a nationwide prohibition on sports betting as unconstitutional. If enacted, the SAFE Bet Act is expected to encounter substantial legal hurdles, with questions likely to arise regarding its constitutionality.
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