Date set for US committee hearing into sports betting
Senate judiciary meeting comes after two senators called for an investigation into FanDuel’s and DraftKings’ “anti-competitive” conduct
Members of the US Senate judiciary committee will hold a hearing on December 17 to discuss sports betting.
Details of the hearing, to be chaired by Democrat senator Dick Durbin at the Dirksen Senate Office Building in Washington DC, have yet to be clarified but has been called ‘America’s High-Stakes Bet on Legalized Sports Gambling.’
News of the hearing came after Democrat senator Mike Lee and Republican senator Peter Welch, who are also members of the committee, wrote a letter last week calling for an investigation into FanDuel and DraftKings over alleged “anti-competitive” behavior.
They accused both operators of “violating Section 1 of the Sherman Act prohibition on coordination to obstruct or impair competition.”
The hearing will likely discuss the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, which was introduced by Representative Paul Tonko and Senator Richard Blumenthal in September.
The act was billed as the “first comprehensive legislation that would address the public health implications inherent in the widespread legalisation of sports betting.”
Under the act, there would be a general prohibition on sports betting. States wishing to offer the activity would have to submit an application to the Attorney General.
Meanwhile, operators would be forced to meet a set of minimum federal standards in advertising, affordability and AI.
These include bans on sports betting broadcast advertising between 8am and 10pm as well as during live sports events.
As for affordability, operators would be barred from accepting more than five deposits from a player in a 24-hour period, as well as deposits from credit cards.
Operators would also need to conduct affordability checks on customers before accepting bets over a certain amount in a 24-hour or 30-day period.
The bill would also prevent AI from being used to track a player’s gambling habits in addition to being barred from creating individualized offers, promotions, and products such as micro betting.
The American Gaming Association slammed the SAFE Bet Act when it was first tabled.
Chris Cylke, the trade group’s senior vice-president of government relations, said: “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.”
Earlier this month, former Democrat presidential candidate Andrew Yang urged the US to rethink online sports betting regulation, saying it preyed on the vulnerable.
Missouri recently became the latest US state to legalize sports betting following November’s state elections.