Paul Tonko has followed through on his promise to introduced legislation that would implement federal regulations on legal sports betting in the United States.
The New York congressman proposed the Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act) this week, which would essentially override individual state regulations, including those that helped the NY sports betting industry become the No. 1 market in the US.
Alongside US Sen. Richard Blumenthal of Connecticut, Tonko introduced the SAFE Bet Act, which they called “landmark legislation that would create nationwide consumer protections and standards for the mobile sports gambling industry.”
“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,” Tonko said in a statement. “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 of whom 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.”
SAFE Bet Act addresses ‘public health implications’
According to a release about the long-awaited proposal, the SAFE Bet Act aims to “address the public health implications resulting from the widespread legalization of sports betting in the United States.” The proposal would require states to “meet minimum federal standards” of offering legal sports betting, including advertising, affordability, and artificial intelligence.
All of this, per the announcement, would “create a safer, less addictive product.”
“This bill is a matter of public health,” Blumenthal said in a statement. “It is a matter of stopping addiction, saving lives, and making sure that young people particularly are protected against exploitation.”
Dr. Harry Levant, the director of gambling policy at the Public Health Advocacy Institute at Northeastern University School of Law, noted that the “gambling industry business model is designed to deliver constant and non-stop gambling action on every phone, tablet, and computer.” Because technology and operators can turn every moment of a sporting event into a gambling action, sports “have become the equivalent of a non-stop slot machine.”
Under the SAFE Bet Act, if passed, sportsbooks would limit bettors to no more than five deposits every 24 hours while implementing “affordability checks” on users looking to place larger bets. In addition, the bill would prohibit sportsbooks from accepting deposits via credit cards.
As for marketing, the SAFE Bet Act would restrict operators from advertising between the hours of 8 a.m. and 10 p.m. as well as during any live sporting event. It also bars the use of phrases such as “risk-free bets,” deposit bonuses, and the like.
If all that weren’t enough, the proposal also prohibits the use of artificial intelligence to cater promotions and bonuses to players based on their betting history.
Sports betting has ‘hijacked’ America’s love of sports
In a post on X, formerly Twitter, Tonko noted that the SAFE Bet Act “creates nationwide consumer protections for the mobile sports gambling industry.
“This industry has hijacked Americans’ love of sports by recklessly peddling a known addictive product. Our bill puts an end to those dangerous practices.
It isn’t Tonko’s first attempt to introduce federal legislation on legal sports betting in the US.
As recently as last year, he was part of a proposal to curb sports betting advertising in the country, at the very least.
At the time, Tonko emphasized that “[w]e’re not looking to outlaw gambling.
“I think this unrestricted, Wild West environment is not helpful to anybody, and we think it’s necessary to have some restrictions so there are not these targeted audiences that are preyed upon (by advertising).”
Pushback already evident to SAFE Bet Act
In a statement, Rep. Dina Titus (Nev.) said the SAFE Bet Act “reinforces the outdated and unwarranted prejudice against gaming, a legal industry which provides good-paying jobs and tax dollars to communities across the United States.”
“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 is a misguided approach.”
The online NY sports betting industry has certainly been beneficial to the Empire State since it launched in early 2022.
In a little more than two-and-a-half years, online sportsbooks in New York have accepted nearly $50 billion in bets, translating to over $4.3 billion in gross revenue for operators and more than $2.2 billion in tax revenue for public education in New York.
