SAFE Bet Act to get another day in the sun

Congress is poised to reexamine the federal landscape of sports wagering with renewed vigor, aiming to implement a comprehensive framework to address pivotal elements of the burgeoning sports betting sector.

On March 11, U.S. Congressman Paul Tonko and U.S. Senator Richard Blumenthal will host a press conference in Washington, D.C. to “reintroduce” the Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act). Initially presented in September, this federal framework for digital sports betting is one of two significant proposals currently under consideration on Capitol Hill.

Representatives from the Public Health Advocacy Institute at Northeastern University School of Law, along with families affected by gambling addiction, will be present at the press event. Together, they will discuss the implications of this legislation and its potential to address sports betting through a public health lens.

The SAFE Bet Act proposes a nationwide self-exclusion list and mandates a report from the Surgeon General scrutinizing the “public health challenges associated with sports betting.” Furthermore, it would empower the Substance Abuse and Mental Health Services Administration (SAMHSA) to collect data regarding the prevalence and effects of sports betting across the country.

Navigating the “Nationwide Prohibition” on Sports Betting

More than merely addressing gambling-related harms, the SAFE Bet Act seeks to establish a national framework governing advertising practices and responsible gambling guidelines. Despite its bold objectives, the Act notably advocates for a “nationwide prohibition” on sports betting, which raises complex issues of states’ rights following the overturning of the Professional and Amateur Sports Protection Act (PASPA) in May 2018.

Since PASPA’s repeal, 39 states have legalized some form of sports betting, with 38 states already offering live wagering options. Missouri is on track to launch its own market by December 1, further illustrating the rapid expansion of sports betting across the nation.

The Act was initially outlined in March 2024, stipulating that states aiming to offer legal sports betting must obtain federal approval. This mandate requires states to submit an application to the U.S. Attorney General, demonstrating compliance with a set of defined criteria. Each application would remain valid for three years, and notably, no application fee has been proposed.

However, questions surrounding the legality of this proposal remain prominent, given the significant changes ushered in by the overturning of PASPA.

Striking a Balance: Advertising Restrictions from 8 AM to 10 PM

The SAFE Bet Act meticulously outlines regulations concerning advertising, expenditure limits, and the use of artificial intelligence (AI). Specifically, it proposes to restrict certain terminology and prohibits betting advertisements during broadcast events between the hours of 8 AM and 10 PM. Additionally, the proposal includes provisions for conducting affordability checks in specified situations, and it seeks to restrict the use of AI for monitoring gambling behaviors.

This upcoming press conference marks the third occasion that Tonko and Blumenthal have advocated for the SAFE Bet Act. To date, no new bill has been filed. Simultaneously, discussions surrounding another legislative initiative, the Gambling Addiction Recovery, Investment, and Treatment Act (GRIT Act), are gaining traction in Washington.

The GRIT Act aims to allocate a portion of the federal excise tax on wagering towards initiatives targeting problem and responsible gambling. The National Council on Problem Gambling has shown support for this Act, while Nevada Representative Dina Titus has proposed legislation to eliminate the excise tax entirely.

As the landscape of sports betting continues to evolve, it is essential for industry stakeholders, policymakers, and the public to engage in constructive dialogue regarding responsible gambling practices. The SAFE Bet Act and GRIT Act represent critical steps towards fostering a more accountable and health-conscious framework in the rapidly expanding realm of sports wagering.