Rep. Paul Tonko (D-NY) introduced his SAFE Bet Act to curtail sports betting advertising, use of AI, and reduce gambling related harms.

• Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT) introduced a bill for federal sports betting regulations
• The Supporting Affordability & Fairness with Every Bet Act will establish national rules for sports betting advertising, affordability, and the use of artificial intelligence.
• Both stress that the act is not a ban on gambling

Two national U.S. lawmakers are hoping a newly introduced piece of gambling legislation will help reduce sports betting harms in this country.

Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT) today officially introduced the Supporting Affordability & Fairness with Every Bet Act (SAFE Bet Act), a piece of legislation to reduce gambling addiction, gambling related harms, and establish minimum federal standards for sports betting advertisements and use of artificial intelligence.

“This is not a ban on gambling, but to take back control over an industry that is out of bounds. Literally operating outside the bounds of decency and respectability,” Blumenthal said.

Setting National Advertising, AI Standards for Sports Betting

A large part of the SAFE Bet Act will be to set national advertising standards for sports betting operators. Tonko noted restrictions will be placed on advertisements to limit them to times and spaces where children are not likely to be in the audience. Restrictions will also be set on celebrities endorsing particular sportsbooks or ad types, similar to Canadian restrictions that prohibit athletes and celebrities from endorsing sports betting companies.

Under the legislation, sports betting advertisements would be banned from 8 a.m. to 10 p.m., be prohibited from airing during live sporting events, and prohibits ads “designed to induce use of gambling products by showing audience how to gamble or explaining how wagers work.”

Tonko’s SAFE Bet Act requires sports betting operators to comply with minimum federal standards in three categories: Advertising, affordability, and artificial intelligence.

If approved, users would not be able to deposit more than five times during a 24-hour period and would require operators to conduct “affordability checks” before accepting large wagers from customers. Additionally, it prohibits the use of credit cards to fund sports betting accounts.

Tonko likened the restrictions to state laws that prohibit the sale of alcohol to those who are visibly intoxicated. Sports betting should not be offered to those who are exhibiting signs of problem gaming and addiction, he said.

The bill would also prohibit the use of artificial intelligence to track player’s gambling habits, create customized promos, and new gambling products, such as microbets. The bill would not allow microbets to continue in the U.S.

Sportsbook companies use artificial intelligence to capture user data to create customized promotions and offers to keep customers playing on their platforms, chasing losses, and losing more money, Blumenthal said.

“Right now, the gambling industry methodically and relentlessly targets losers, that’s where the money is. People who lose are losing to the benefit of the gambling industry,” he said.

It would also institute a national ban on prop bets for collegiate and amateur athletes.

Bill Already Facing Opposition

As Tonko and Blumenthal presented the bill this afternoon, iDevelopment & Economic Association (iDEA), an association representing the interests of the regulated U.S. online gaming and sports betting industry, published a statement in opposition of the SAFE Bet Act.

“While we strongly support efforts to promote responsible gaming and player protections, this legislation represents an unnecessary and harmful federal overreach into an area that has been successfully regulated at the state level since the Supreme Court’s decision to overturn the federal sports betting ban in 2018.”

According to the association, the bill’s prohibition on the use of AI technologies and certain promotions ignores the importance of innovation in creating “a secure and safe environment for sports bettors.”

The restriction of legitimate tools used by sports betting companies to ensure the safety of its players will drive customers to unregulated and illegal markets, the association noted in its release.

“Instead of imposing unnecessary restrictions on legal, state-licensed sport betting operators, Congress should use its power to collaborate with states to shut down illegal offshore sportsbooks that brazenly defy federal law.”

The American Gaming Association (AGA) also released a statement in opposition of the SAFE Bet Act, declaring it to be a “slap in the face to state legislatures and gaming regulators.”

“Today’s regulated sports wagering operators are contributing billions in state taxes across the U.S., protecting consumers from dangerous neighborhood bookies and illegal offshore websites, and working diligently with over 5,000 state and tribal regulators and other stakeholders to ensure a commitment to responsibility and positive play. Six years into legal sports betting, introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks unique to their jurisdictions, and have continued to iterate as their marketplaces evolve,” Chris Cylke, senior vice president of government relations for the AGA, said.

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