Proposed Federal "SAFE Bet Act" Aims to Reduce Gambling Harms
Author:
Zach
Published:
Sep 18, 2024
,
10:21 a.m.
ET
Updated:
Sep 18, 2024
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12:37 p.m.
ET
The U.S. sports betting landscape has rapidly evolved since the Supreme Court’s 2018 decision to overturn the Professional and Amateur Sports Protection Act (PASPA), allowing states to legalize and regulate sports betting. This has resulted in a wave of state-level legalization, leading to increased concerns about gambling addiction and responsible gaming practices.
In response, two U.S. lawmakers – Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT) – introduced a new piece of legislation, the Supporting Affordability & Fairness with Every Bet Act (SAFE Bet Act). This proposed federal law seeks to address the growing concerns of gambling-related harms, focusing on setting national standards for advertising, affordability and the use of artificial intelligence in the sports betting industry.
What is the SAFE Bet Act?
The SAFE Bet Act is designed to introduce federal regulations in a sector governed by individual states. The bill focuses on curbing the negative impacts of sports betting, particularly gambling addiction. One of the primary goals of the legislation is to set minimum federal standards for advertising, ensuring that promotions do not disproportionately target vulnerable populations, such as minors and individuals struggling with gambling addiction.
Under the proposed law, sports betting advertisements would be restricted from airing during live sporting events and between the hours of 8 a.m. and 10 p.m.
Celebrities, including athletes, would also be prohibited from endorsing sportsbooks, reflecting a model similar to Canadian restrictions. Furthermore, the SAFE Bet Act seeks to ban advertisements that instruct users on how to place wagers, which are seen as encouraging gambling rather than merely informing.
Another significant component of the legislation is its focus on affordability. The SAFE Bet Act would require operators to implement "affordability checks" before allowing users to place large wagers. Additionally, bettors would be limited to five deposits within a 24-hour period, and the use of credit cards for gambling would be banned entirely. These measures are aimed at preventing individuals from chasing losses and gambling beyond their financial means, likened by Tonko to state laws that prohibit the sale of alcohol to visibly intoxicated individuals.
One of the most debated aspects of the bill is its stance on artificial intelligence (AI). The SAFE Bet Act seeks to prohibit the use of AI in tracking players' gambling habits and generating personalized promotions. Additionally, the legislation would ban AI-driven microbets, a form of wagering that offers bets on small, rapid events during a game, which are often seen as more addictive due to their frequency and immediacy.
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Is the SAFE Bet Act likely to be passed, signed into law?
While the SAFE Bet Act is designed to address rising concerns over gambling addiction, it is already facing significant opposition. Industry organizations like the iDevelopment & Economic Association (iDEA) have voiced major concerns, arguing that the legislation represents an unnecessary federal overreach. The iDEA contends that sports betting has been successfully regulated at the state level since PASPA's repeal and that the proposed restrictions could push players toward unregulated offshore markets. The American Gaming Association (AGA) also criticized the bill, calling it a "slap in the face" to state legislators who have worked to create responsible gambling frameworks.
Several operator groups and consultancy experts told popular newsletter Compliance+More that the bill has “almost no chance” of passing in its current form.
Although the bill faces challenges, its proponents argue that federal standards are necessary to protect consumers, particularly as the industry continues to grow. The SAFE Bet Act may face a tough road in Congress, but it has sparked an important debate about the future of sports betting regulation in the U.S.
Sports Betting legalization background: State vs. Federal
The landscape of sports betting in the U.S. has been shaped by a long-running battle between state and federal control. PASPA, signed into law in 1992, effectively banned sports betting nationwide, with limited exceptions for states like Nevada. The law was intended to maintain the integrity of sports by curbing the spread of gambling. However, it was criticized for infringing on states' rights and failing to prevent illegal sports betting.
The Supreme Court’s 2018 decision to overturn PASPA was a landmark ruling that reinforced the principle of states' rights. The court argued that PASPA violated the Tenth Amendment by forcing states to enforce federal law. This ruling allowed states to legalize and regulate sports betting as they saw fit, resulting in a patchwork of regulations across the country. Today, 38 states and Washington, D.C. have legalized sports betting, with 30 allowing mobile wagering.
Despite the growth of the industry through state-level regulation, the SAFE Bet Act reflects ongoing efforts to introduce federal oversight. Proponents of the bill argue that federal standards are needed to address issues like gambling addiction, which do not respect state borders. Critics, on the other hand, argue that state regulators are better positioned to manage the unique needs of their jurisdictions.
Gambling Addiction in the U.S. - Stats and Trends
With the rapid expansion of legal sports betting, concerns about gambling addiction have grown. There was a 30% increase in the risk of gambling addiction from 2018 to 2021, per the NCPG. Calls to problem gambling helplines have surged in states that legalized sports betting, reflecting the growing number of individuals struggling with gambling-related harms.
Virginia: 973% increase in the number of helpline callers between 2019 and 2023
Florida: 138% increase in first 2 months of legal sports betting
Ohio: 227% increase from January 2022 to January 2023
Massachusetts: 121% increase from July 2022 to June 2023
Approximately 7-9 million Americans are estimated to have a gambling addiction, and around 20% of those display suicidality, the highest rate among all mental health disorders. The rise in mobile and online betting has made it easier than ever for individuals to gamble, contributing to the increase in problem gambling.
Gambling addiction treatment
For individuals struggling with gambling addiction, treatment options are available. Birches Health offers multiple resources for those looking to take the first step toward recovery. Individuals can book an appointment with a therapist, speak with a care specialist or refer someone else. Free self-assessments are also available, providing a valuable tool for those unsure about their relationship with gambling.
There are multiple options for taking the first step with Birches Health:
To learn more about treatment options or to get in touch with a Birches Health representative, individuals can call 833-483-3838 or email hello@bircheshealth.com. Support is available, and taking the first step can be a life-changing decision.
