Sports gambling has exploded across the United States in the past six years, and in response, two lawmakers have introduced legislation that would implement federal regulations on the practice.
Rep. Paul Tonko DN.Y. and Sen. Richard Blumenthal, D-Conn., on Thursday introduced the Support affordability and fairness with every bet or the SAFE bet lawwhich seeks to ensure that sports betting operators comply with minimum federal standards and attempts to address the public health impacts of legalizing sports betting.
“This relationship between the gaming industry and sports has reached unacceptably dangerous levels and it is now time for Congress to step up and make a difference,” Tonko said in a press conference on Thursday.
The Supreme Court struck down the federal ban on sports betting in 2018. Six years later, sports betting has exploded across the United States as 38 states have legalized it. The industry published a a record $11 billion in 2023, marking a 44% increase over the previous year, according to the American Gaming Association.
It also brought billions in new revenue to the states, as they get a cut of the pie through taxes.
Rapid growth has led operators to seek large sums of money to acquire customers through advertising, promotions and enticements.
“Now every single moment of every sporting event around the world has become a betting opportunity, whether you’re scrolling through social media, driving down the freeway past billboards or listening to your favorite podcast or radio station, there are sports betting ads to entice you with an endless cascade of fancy promotions,” Tonko said.
Gordon Douglas joined lawmakers at the press conference and said he has seen firsthand the challenges of gambling addiction with his son, 28-year-old Andrew Douglas. Gordon Douglas says his son, an athlete and coach, signed up with one gambling company and was then inundated with offers and advertisements from at least six others.
“He became a different person who would say anything to get money to play,” he said. “He got to the point where he wanted to end his life because he didn’t see a way out.”
The Douglas family is not alone – an estimated 7 million people in the US have a gambling problem, with one in five problem gamblers having attempted suicide, according to National Institutes of Health and National Council on Problem Gambling.
A July report found that the odds of filing for bankruptcy in states with legal gambling increased from 25% to 30%.
Lawmakers say they’re not trying to ban sports gambling — they’re just trying to make it safe for the public to enjoy as a recreational activity, pushing for a national standard.
“State regulations are tight-lipped and half-baked. That’s why we need a national standard — not to ban gambling — but just to regain control of an industry that’s out of bounds,” Blumenthal said Thursday.
The bill addresses three key areas linked to sports betting: advertising, affordability and artificial intelligence.
“This industry is exploiting the most advanced technology to make the most money,” Blumenthal said of artificial intelligence.
He said he wants to ban the use of artificial intelligence to track players’ gambling habits and individual promotions.
The bill also pushes for changes to advertising, including a ban on sports betting advertising during live sporting events intended to induce gambling with “no sweat” or “bonus” type bets.
Finally, the legislation would limit customer deposits to five in a 24-hour period. It would require gaming operators to ensure that customers betting more than $1,000 can afford to do so.
“The gaming industry is following a playbook developed by the tobacco industry, and that poses a direct threat to public health,” said Richard Daynard, law professor and president of the Public Health Advocacy Group at Northwestern.
Sports betting operators, meanwhile, are fighting back and say the industry has brought benefits.
Chris Cylke, senior vice president of government relations for the American Gaming Association, said the bill is “a slap in the face” to state regulators and gaming operators who have devoted significant time and resources to developing the framework as the market evolves.
“Today’s regulated sports betting operators contribute billions in state taxes across the US, protecting consumers from dangerous neighborhood bookmakers and illegal offshore sites, and work diligently with more than 5,000 regulators and other stakeholders to ensure a commitment to accountability and positive game. said Klaik.
The bill also drew public opposition from Rep. Dina Titus, D-Nev., who called the SAFE Bet Act “outdated” and “unwarranted.”
Douglas said his family was able to get help for his son, but he wants to make sure others don’t go down a similar path.
“We as a country must not allow him and others like him to be exploited,” he said. “We should do what is right to limit access to this type of gambling.”
If you are having suicidal thoughts or are in distress, please contact Lifesaver of suicide and crisis on 988 for support and assistance from a trained advisor.
— CNBC’s Contessa Brewer contributed to this report.
