Lawmakers Introduce SAFE Bet Act to Bring Federal Oversight to Sports Betting

Sen. Richard Blumenthal is making the case that sports betting has gotten "out of bounds" and needs federal regulation. The bill opens up a new path for campaign donations from well-monied sports betting interests. (Image: Sipa US)

Senator Richard Blumenthal (D-Connecticut) and Representative Paul Tonko (D-New York) announced new legislation on Thursday that would give the federal government broad oversight over state-level sports betting regulations, including the implementation of minimum standards each state and operator would have to meet.

Known as the Supporting Affordability and Fairness with Every Bet Act – or the SAFE Bet Act for short – the bill would require every state that has legalized sports betting to go through a new application process with the US Justice Department, after which the US Attorney General could approve or reject those proposals, with approvals granted for three-year periods. 

Bill Includes Advertising Restrictions, Prop Bet Bans

If passed into law, the SAFE Bet Act would implement controls far stronger than what is currently seen in most states that have regulated sports betting. 

First, advertising and marketing would be heavily restricted. Gambling operators would be prohibited from running ads between 8 am and 10 pm, or during live sporting events. Bonus bets, “no sweat bets,” and similar promotions would also be outlawed. 

Prop betting on college sports would be outlawed nationally, a step that has already been taken in states like Ohio, Maryland, and Louisiana. The bill would also create a national self-exclusion list, allowing users to ban themselves from sports betting across the country.

Operators would also be restricted from accepting more than five deposits from any customer in a 24-hour period. Credit card deposits would be banned, and gambling firms would be required to make “affordability checks” on customers before they could place bets of more than $1,000 during a 24-hour period. 

The bill would also outlaw using AI to take gambling habits of individuals or craft individualized microbets for customers.

“State regulation is faint-hearted and half-baked,” Blumenthal said at a press conference announcing the SAFE Bet Act. “Not to ban gambling, but simply to take back control over an industry that is out of bounds.”

AGA: Bill is ‘Slap in the Face’ to Regulators

The gaming industry quickly came out against the bill.

“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,” Chris Cylke, senior vice president of government relations for the American Gaming Association, said in a statement. “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.”

The Professional and Amateur Sports Protection Act, which had prevented new states from regulating sports betting, was struck down by the Supreme Court in 2018. Since then, 38 states have legalized and regulated sports betting. Several attempts at writing federal regulation for the industry have been introduced, but none have gained traction with lawmakers.

That may well be the case with the SAFE Bet Act, too. On Thursday, at least one congressional Democrat blasted the bill.

“While the SAFE Bet Act is perhaps well-intentioned, pre-empting state gaming regulators by outlawing most forms of advertising and restricting the types and methods by which customers can place bets in a misguided approach,” Representative Dina Titus (D-Nevada) said in a press statement.