Two of the more vocal critics of the sports betting industry on Capitol Hill outlined legislation Thursday, which if passed into law would put into place sweeping new federal regulations on gambling companies, including requiring them to set limits on what amount sports bettors wager and how often they can place bets.
The Supporting Affordability and Fairness with Every Bet Act -- or SAFE Bet Act -- proposed by Senator Richard Blumenthal (D-CT) and Representative Paul Tonko (D-NY) would establish a nationwide ban on sports betting, requiring the 38 states where sports wagering has already been legalized to go through a new application process with the U.S. Justice Department. The U.S. Attorney General would then approve or reject applications, with approvals only lasting for a three-year period.
"State regulation is faint-hearted and half-baked. That's why we need a national standard," Blumenthal said. "Not to ban gambling but simply to take back control over an industry that is out of bounds."
Tonko added: "We need to address addictions of all kinds. If not, we're failing in our responsibilities."
Lobbyists for the gambling industry were quick to point out Thursday that more than 5,000 state and tribal regulators have already come up with extensive industry controls.
"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," said Chris Cylke, the American Gaming Association's senior vice president of government relations.
The attempt to federalize laws that govern sports betting is focused on three areas: advertising, affordability and artificial intelligence.
If passed, the SAFE Bet act would prohibit gambling operators from running advertisements between the hours of 8 a.m. and 10 p.m. and during live sporting events. It would put an end to the practice of offering customers "bonus bets," "no sweat bets" and other similar incentives.
In terms of affordability, the proposed legislation would prevent operators from accepting more than five deposits from a single customer within a 24-hour period, prohibit operators from accepting credit card deposits and require gambling companies to conduct "affordability checks" on customers before they place wagers of more than $1,000 within a 24-hour period.
Prop betting on collegiate sports, recently prohibited in Louisiana, Ohio and Maryland, would be banned nationally. The legislation also calls for the formation of a nationwide "Self-Exclusion List," which gambling operators would have to check before accepting wagers from customers.
The use of artificial intelligence by gambling operators is also an area of concern for the backers of the proposed legislation. The SAFE Bet Act would prohibit the use of AI to track a bettor's individual gambling habits and prevent the use of AI by gambling companies to create so-called "microbets," tailor-made for individual customers.
A spokesman for the American Gaming Association said AI tools have already proven effective in limiting problem gambling by sending bettors computer-generated messages to take breaks and avoid prolonged losing streaks.
Blumenthal and Tonko have also already met opposition within their own political party. Representative Dina Titus (D-NV) released a statement Thursday calling the SAFE Bet Act "outdated" and "unwarranted."
"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," Titus said.
Tonko and Blumenthal were joined Thursday by representatives from Northeastern University's Public Health Advocacy Institute as well as Gordon Douglas, the father of a 28-year-old who is in recovery for a gambling addiction. The Public Health Advocacy Institute has successfully sued the tobacco industry in the past and is now involved in litigation with online sportsbook DraftKings.
"This bill is a matter of public health," Blumenthal said. "It is a matter of stopping addiction, saving lives and making sure that young people particularly are protected against this exploitation."