Congressional Democrats eyeing guardrails on sports betting

Sports betting has spread nationwide since the Supreme Court struck down a federal prohibition on it in 2018. But now, two congressional Democrats are seeking to add guardrails to how sportsbooks may advertise and operate.

Sports betting is legal in 38 states, including the District of Columbia, as of September 2024, but little has been done at the federal level to regulate the industry since 2018. Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT) are unveiling legislation that would combat sports betting addiction as a public health problem, taking aim at restricting advertising and the use of artificial intelligence, among other provisions.

An outline of the proposed legislation, the Supporting Affordability and Fairness with Every Bet Act, was released earlier this year, establishing federal standards in three main categories.

For advertising restrictions, the law would ban advertisements for sports betting during live sporting events and prohibit programming that uses bonuses or odds boosts to encourage placing wagers. Under the affordability part of the outline, provisions include banning sportsbooks from accepting more than five deposits from someone in a 24-hour period and not allowing them to accept deposits made with a credit card. The bill would also prevent sportsbooks from using AI to track customers' habits and offer individualized promotions or create products based on the use of the technology.

The legislation would also require a surgeon general's report on sports betting and allow the Substance Abuse and Mental Health Services Administration to collect data on sports betting. The legislation centers on addiction, as sports betting reaches new heights as it becomes legal across the country.

"Problem gambling in America has grown into a public health crisis — one that requires a public health approach and solution. My legislation offers that solution,” Tonko said in a statement earlier this year.

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Sports betting advocates, including the American Gambling Association, are pushing responsible gambling as a priority. The group is urging customers who are placing bets to have a "game plan" and set limits before wagering on events.

“That means educating customers, empowering them with tools to bet responsibly. And so anybody who’s getting in the action this year should have a game plan to bet responsibly. That means setting a budget, playing legally, keeping it social, and knowing the odds,” Cait DeBaun, vice president of strategic communications and responsibility at the American Gaming Association, told the Washington Examiner earlier this year.