SAFE Bet Act gets another day in the sun ahead of March Madness
U.S. Congressional Leadership Moves to Reintroduce the SAFE Bet Act: A Call for Enhanced Safety in Digital Gambling
On March 11th, during a press conference at Capitol Hill, Representative Paul Tonko and Senator Richard Blumenthal united with advocates for responsible and problem gambling, as well as an addiction survivor, to spotlight the reintroduction of the Supporting Affordability & Fairness with Every Bet Act (SAFE Bet Act). This initiative reflects ongoing federal efforts to ensure the safety and integrity of digital gambling in the United States.
Representatives Tonko and Blumenthal announced that the SAFE Bet Act would incorporate updates from its previous iteration, which saw no legislative action in the prior session. The revised bill mandates enhanced collaboration between state governments and federal authorities aimed at dismantling illegal gambling markets.
Historically, states have spearheaded efforts to regulate illegal betting activities. Several states, including Arizona and Michigan, have proactively issued cease-and-desist orders to offshore sportsbooks, while others like Mississippi and Maryland are contemplating legislation to prohibit unregulated sweepstakes platforms. The collective aim of these initiatives is to curb illegal operations and protect consumers.
Addressing the Risks Associated with Sports Betting
With the NCAA men’s basketball tournament, March Madness, on the horizon, Tonko and Blumenthal aim to revitalize discussions surrounding gambling regulations and consumer protection. “In one week, Americans will engage in betting on their favorite teams, and many will undoubtedly experience losses,” Tonko remarked. “Our goal is not to stifle industry growth or prevent Americans from placing bets; rather, it is to address the gambling-related harms that have been overlooked by government at all levels.”
The legal sports betting industry made headlines by generating an unprecedented $14 billion (£10.9 billion/€12.9 billion) in revenue in 2024—a 25% increase from 2023. Nevertheless, Tonko emphasizes the troubling reality behind these figures: “That $14 billion reflects money taken from the pockets of everyday Americans, often from a small percentage of gamblers who experience significant losses.”
Senator Blumenthal denounced the expansion of legal sports betting as “the science of exploitation,” highlighting that the SAFE Bet Act seeks to limit market options for bettors. He explained that the core focus of the legislation is to introduce necessary pauses in the betting process, likely leading to restrictions on in-play betting and college proposition bets.
Reevaluating the Landscape of Interactive Betting
In-play betting, arguably the fastest-growing segment of online sports wagering, allows bettors to place wagers on specific events throughout the course of a game. This includes forecasting the next play in football or the outcome of the subsequent pitch in baseball. The industry’s continuous innovations are geared toward creating increasingly quick and seamless betting experiences for consumers.
However, during the press conference, there was a sense of nostalgia for the more traditional engagement with sports. “Sports used to be a shared experience for families, but the landscape has shifted dramatically,” lamented Harry Levant, a representative from the responsible gambling community. “Today, sports consumption feels akin to a non-stop slot machine, with financial considerations overshadowing the integrity of the games themselves.”
The SAFE Bet Act positions itself as a legislative safeguard for responsible gambling. Key components of the bill include:
- Establishing explicit advertising guidelines, detailing appropriate messaging and scheduling for gambling advertisements on broadcast media
- Creating a national self-exclusion registry empowering individuals to opt-out of gambling activities
- Implementing affordability checks to ensure responsible gambling practices
- Commissioning a report from the U.S. Surgeon General addressing the public health implications of sports betting
Proposed Changes to Incentives and Regulations
Additionally, the legislation intends to scrutinize the role of artificial intelligence in targeting consumers, potentially leading to the discontinuation of VIP programs designed to attract frequent bettors. Levant equated such promotions to tactics employed by drug dealers to retain their most loyal customers.
Mark Gottlieb, Executive Director of the Public Health Advocacy Institute at Northeastern University School of Law, emphasized, “The path to safer sports gambling runs through systematic moderation. Just as we enforce speed limits and guardrails for driving safety, we must similarly enforce guidelines in sports betting to prevent addiction and its accompanying societal fallout.”
Implications for State Autonomy in Gambling Regulation
Moreover, the SAFE Bet Act proposes significant shifts in gambling oversight, attempting to return sports betting regulation back to federal jurisdiction. Following the 2018 U.S. Supreme Court reversal of the Professional and Amateur Sports Protection Act (PASPA), the states gained autonomy to legalize sports wagering. Under the new proposal, states wishing to offer or expand sports betting would need to submit applications to the Attorney General, thereby reinforcing federal oversight.
The proposed legislation also includes a “national prohibition” on digital sports betting. To date, 39 states have legalized sports betting, with Missouri being the most recent addition slated to launch by December 1st, 2023. However, when the SAFE Bet Act was first introduced in September, it faced criticism from various industry stakeholders, including operators, consultants, and advocates alike, who expressed concerns about its broad scope and potential constitutional implications.
