In a comprehensive hearing before the Senate Judiciary Committee on 17 December, lawmakers, sports officials, and public health advocates gathered to discuss the far-reaching effects of legalised sports betting in the US.
Chairman Dick Durbin opened the session by emphasising the industry’s exponential growth, noting that more than $30bn was wagered on sports in the third quarter of 2024, representing a 30% year-on-year increase.
He also revealed that advertising spending by the industry is projected to reach $1.3bn this year, sparking growing concerns about its influence on vulnerable populations.
The hearing addressed key challenges posed by legalised sports betting, including gambling addiction, athlete harassment, and sports integrity. One of the core points of discussion was the SAFE Bet Act, which would give increased control over sports betting regulations to the federal government.
Testimonies highlighted the alarming rise of betting-related threats and underscored the need for federal oversight, athlete protections, and targeted addiction prevention strategies.
NCAA President highlights problems and college sports risks
Charlie Baker, a former Massachusetts governor and the current President of the National Collegiate Athletic Association (NCAA), presented a stark picture of the risks student-athletes face in the current sports betting climate.
Baker reported that 10-15% of Division I athletes have experienced harassment from bettors, particularly after missed plays or perceived mistakes. He identified prop bets — wagers on specific player performances — as a major catalyst for this abuse.
Baker also argued that these bets disproportionately target young athletes and should be banned nationwide to protect their mental health and safety.
He further addressed the increasing monetisation of collegiate athletics and the challenges posed by unregulated black market betting sites, which operate outside of established state frameworks.
In addition, Baker called for federal action to combat unregulated operators, which he said not only undermine game integrity but also pose significant risks to consumers.
Among other initiatives, he also discussed ongoing partnerships between the NCAA and research institutions like Rutgers University, to develop evidence-based strategies for reducing gambling-related harms.
Athletes face growing harassment and mental health struggles
Drawing from his professional experience as a former football player in the NFL, Johnson Bademosi offered a powerful testimony on the toll that sports betting has taken on athletes’ mental health and safety.
He described the increasing harassment that players endure, particularly through social media platforms, where disgruntled bettors can directly target athletes.
Bademosi emphasised the psychological impact of constant scrutiny, stating that this harassment can negatively affect athletes’ performance and overall wellbeing.
To address these challenges, Bademosi proposed implementing prohibitions on negative bets, which allow fans to wager on players’ failures, as well as safeguarding athletes’ biometric data to ensure privacy and protection from misuse.
His recommendations highlighted the need for proactive measures to protect athletes at both the collegiate and professional levels.
Gambling addiction and public health crisis
The discussion then turned to the escalating issue of problem gambling in the US. Keith Whyte, executive director of the National Council on Problem Gambling (NCPG), underscored the urgent need for action, reporting that 9 million Americans suffer from gambling-related problems.
He said the rapid proliferation of sports betting, combined with aggressive advertising and technological innovations, has created a public health crisis.
Whyte advocated for the passage of the GRID Act, a proposed federal measure that would allocate funding for prevention, treatment, and education programs focused on gambling addiction. He also reiterated his support for the SAFE Bet Act.
He stressed the importance of viewing gambling addiction through a public health lens and called for a comprehensive approach to mitigate its long-term societal impact.
Whyte, who last year praised New Jersey’s betting model, also raised concerns about the normalisation of gambling among younger audiences, particularly through targeted marketing campaigns.
State-level regulation: New Jersey’s model and challenges
David Rebuck, former Director of New Jersey’s Division of Gaming Enforcement, provided insights into the successes and challenges of regulating sports betting at the state level.
New Jersey, the second state to legalise sports betting after PASPA’s repeal, has emerged as a model for state-led regulation. Rebuck emphasised the importance of robust consumer protection measures and close oversight of operators to ensure fair play and transparency.
Rebuck also cautioned against federal overreach and the SAFE Bet Act, arguing that states are best positioned to regulate sports betting based on their unique needs and circumstances.
He stressed that federal oversight should complement, rather than replace, existing state frameworks, which have proven effective in addressing issues such as game integrity and consumer safety.
Technology, AI, and the ‘non-stop slot machine’ effect
The hearing also delved into the role of technology and artificial intelligence (AI) in driving the sports betting boom. Witnesses highlighted how AI tools are used to create real-time, targeted betting opportunities, effectively turning live sports events into “non-stop slot machines.”
Dr. Harry Levant, a public health advocate who shared his personal struggles with gambling addiction, warned that these technological advancements exacerbate compulsive gambling behaviours by encouraging constant engagement.
Levant specifically cited DraftKings’ acquisition of Simplebet, a company specialising in AI-driven betting models, as an example of how the industry leverages technology to maximise profits.
He urged lawmakers to view gambling regulation as a public health issue and proposed collaborating with policymakers on solutions like the SAFE Bet Act.
Action items and recommendations
Throughout the hearing, witnesses and lawmakers identified key action items to address the challenges posed by legalised sports betting:
– Banning Prop Bets: Baker advocated for eliminating prop bets in college sports to protect student-athletes from harassment and undue pressure. This is something already being considered in a handful of states, with some already taking action.
– Federal Addiction Prevention Efforts: Whyte urged the passage of the GRID Act to provide funding for gambling addiction prevention and treatment programs.
– Player Protections: Bademosi recommended prohibiting negative bets and safeguarding biometric data to ensure athletes’ safety and privacy.
– Combating Black Market Betting: Baker emphasised the need for stronger federal efforts to eliminate illegal gambling platforms.
– Maintaining State-Led Regulation: Rebuck recommended preserving state-led regulatory frameworks, which have proven effective in markets like New Jersey.
Balancing growth with responsibility
The hearing painted a clear picture of the dual nature of legalised sports betting. While the industry has generated substantial economic benefits, its rapid growth has also brought about significant challenges, including gambling addiction, athlete harassment, and concerns about game integrity.
Chairman Durbin and other senators stressed the need for comprehensive federal oversight to complement state regulations, protect athletes, and address addiction as a public health crisis.
The hearing suggested stakeholders — including lawmakers, sports organisations, and public health advocates — will need to collaborate on implementing solutions that strike a balance between economic opportunity and social responsibility.
As the legal sports betting ecosystem continues to evolve and mature, the hearing underscored the division that exists in formulating consistent regulations.