Betting News 
The latest federal sports betting legislation, known as the SAFE Bet Act, was introduced on Thursday by Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT), calling for significant changes to sports betting regulations in three key areas: advertising, affordability, and the use of artificial intelligence. The bill aims to address concerns about the impact of sports betting on consumers, but it was swiftly met with opposition from industry leaders and state representatives.
Key Provisions of the SAFE Bet Act
The SAFE Bet Act outlines regulations designed to limit harmful practices in the sports betting industry, including:
- Advertising restrictions: Limiting ads to times when children are less likely to be exposed and focusing on brand awareness instead of promoting gambling activities.
- Affordability checks: Establishing limits on customer deposits to prevent financial harm, including a ban on credit card deposits.
- Artificial intelligence regulation: Banning the use of AI for creating gambling products and targeting vulnerable customers.
Rep. Tonko emphasized that the bill is not intended to ban sports betting but to make it safer for the public.
“This bill is an effort designed to prevent harm before it occurs,” Tonko said. “The SAFE Bet Act will ensure that gambling on sports is safe for the public to enjoy.”
Industry Pushback Against Federal Legislation
Despite Tonko’s intentions, the proposal was met with strong opposition from both gaming industry representatives and lawmakers. Rep. Dina Titus (D-NV), who represents Las Vegas, criticized the bill for pre-empting state gaming regulations.
“The SAFE Bet Act is perhaps well-intentioned, but 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,” Titus said.
The American Gaming Association (AGA) also voiced concerns, calling the federal legislation a step back for states that have already implemented comprehensive regulations.
“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,” said Chris Cylke, senior vice president of government relations at the AGA.
Ban on College Prop Bets and Advertising Restrictions
A significant part of the SAFE Bet Act involves banning prop bets on college and amateur athletes. This provision, according to Rep. Tonko, was requested by athletes, coaches, universities, and leagues who were concerned about the pressure and abuse athletes face due to betting interests.
“NCAA President Charlie Baker has urged states to ban prop betting on individual athletes,” Tonko said, citing that one in three high-profile athletes receives abusive messages related to betting.
The bill also proposes restrictions on sports betting advertising, aiming to limit ads to times when children are not likely to be watching. Tonko previously introduced a similar effort last year with the Betting on Our Future Act.
Deposit Limits and Affordability Checks
The SAFE Bet Act calls for strict deposit limits to protect consumers from excessive gambling. These include:
- A maximum of five deposits within 24 hours.
- A cap of $1,000 deposited in a 24-hour period.
- A limit of $10,000 deposited over 30 days.
Additionally, the bill proposes a ban on credit card deposits to fund online sports betting accounts, an idea that some states have already explored.
Tonko likened this to existing laws regulating alcohol sales:
“We need to have the same standard for sportsbooks as we do for alcohol, where visibly intoxicated individuals cannot be served.”
AI Practices in Sports Betting Under Scrutiny
The bill also seeks to regulate the use of artificial intelligence in the sports betting industry, particularly targeting the use of AI for live betting pricing and analyzing customer behaviors to target losing bettors.
“Right now, the gambling industry methodically and relentlessly targets losers because that’s where the money is,” said Sen. Blumenthal.
Tonko described these practices as predatory, suggesting that minimum standards need to be established for how AI is used in sports betting products.
A Divisive Proposal
While the SAFE Bet Act aims to enhance consumer protection in the rapidly growing US sports betting market, the proposed federal regulations face significant pushback from both the gaming industry and state lawmakers. The debate will likely continue as industry leaders argue for state-level regulation, emphasizing that responsible gaming measures and customer choice are essential to competing with illegal markets.
