Lawmakers Reintroduce SAFE Bet Act to Regulate U.S. Sports Betting Industry

A Renewed Push for Federal Oversight Amid March Madness

As the NCAA’s March Madness tournament approaches, Congressman Paul D. Tonko and Senator Richard Blumenthal have renewed efforts to introduce federal consumer protection standards in the mobile sports betting industry. The legislators have reintroduced the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, aiming to implement stricter regulations on gambling operators.

A Second Attempt at Reform

The SAFE Bet Act was initially introduced in September last year but failed to gain traction in the previous congressional session. The proposal faced criticism from various stakeholders, including industry operators, consultants, and responsible gambling advocates, who raised concerns about its scope and potential constitutional challenges. Despite these setbacks, Tonko and Blumenthal remain steadfast in their efforts to pass the bill.

At a press conference on March 11, the lawmakers were joined by gambling addiction survivors and advocacy groups, including the Public Health Advocacy Institute (PHAI) at Northeastern University School of Law. They emphasized that the legislation is not designed to ban digital gambling but rather to establish safeguards against predatory practices within the industry.

Addressing Industry Exploitation

Tonko highlighted the rapid expansion of sports betting and the necessity for federal oversight. “In just a few years, the sports gambling industry has become entrenched in every aspect of sports, with every play, pass, pitch, and punt marketed as a moment to bet,” he stated. Comparing the initiative to past regulatory measures on tobacco and alcohol, he stressed, “We must take action to limit the harm of this addictive product.”

Blumenthal took aim at gambling operators’ use of artificial intelligence to target vulnerable consumers. “Sports betting has become a science for gambling entities. It is the science of exploitation and targeting individuals prone to addiction,” he said.

Key Provisions of the SAFE Bet Act

The SAFE Bet Act proposes several significant changes to the sports betting landscape, including:

• Establishing federal standards for marketing, affordability, and AI use in gambling platforms.
• Introducing restrictions on in-play betting and college proposition wagers—two rapidly growing segments of online gambling.
• Curbing VIP programs and loyalty incentives that encourage excessive betting.
• Requiring operators to eliminate AI targeting of high-risk bettors.
• Creating a national self-exclusion list for problem gamblers.
• Mandating a study by the U.S. Surgeon General on gambling-related harm and enabling the Substance Abuse and Mental Health Services Administration to collect relevant data.

Additionally, the proposal includes a federal licensing requirement, compelling states to seek approval from the U.S. Attorney General to operate legal sports betting markets. This marks a shift from the current state-led regulatory approach, a structure established after the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018.

Shaping the Future of U.S. Sports Betting

A notable revision in the bill requires state cooperation with the federal government to combat illegal offshore gambling, addressing concerns that states like Arizona and Michigan have independently attempted to tackle in recent years.

Mark Gottlieb, Executive Director of PHAI, underscored the need for federal intervention. “Where there is a public health problem, there needs to be a public health solution,” he said. “The SAFE Bet Act is that solution.”

With March Madness set to generate billions in wagers, the debate over federal oversight is intensifying. The reintroduction of the SAFE Bet Act signals a determined push by lawmakers to impose stricter regulations on the rapidly evolving sports betting industry. Whether the bill gains momentum in Congress remains to be seen, but it has once again placed the issue of gambling regulation at the forefront of national discussion.