US trade bodies hit out at “heavy-handed” SAFE Bet Act

The American Gaming Association (AGA) and the iDevelopment and Economic Association (iDEA) have slammed the proposed SAFE Bet Act, with the legislation described as being “heavy-handed” and a “slap in the face” for state lawmakers and regulators.  

The bill, introduced by New York representative Paul Tonko and described as a “general prohibition on sports betting”, aims to implement new federal standards for sports betting products with regards to advertising, affordability, and AI.

The brainchild of Tonko, the SAFE Bet Act was formally introduced at a press conference yesterday, September 12, alongside Connecticut Senator Richard Blumenthal and figures from the Public Health Advocacy Institute (PHAI) at the Northeastern University School of Law.

The bill, which was first introduced in March, includes a swathe of clampdowns on the sector aimed at protecting consumers.

In terms of advertising, the SAFE Bet Act includes proposals to ban sports betting adverts between 8am and 10pm local time, prohibit any gambling ads during live sporting events, and forbid any ads promoting bonus offers or explaining how any aspect of betting works.  

The bill’s affordability measures include stopping operators from accepting more than five deposits from a customer within a 24-hour period and not being able to take credit card deposits.  

Operators would also have to conduct affordability checks before accepting bets over a certain threshold in a 24-hour or 30-day period, in addition to having to check with a to-be-formed and funded National Clearinghouse for self-exclusion data before allowing customers to place bets. 

Companies would also be prevented from using AI to track players’ gambling habits, create personalized offers, or provide products such as micro-betting. 

Following the press conference, both the AGA and iDEA issued damning statements, claiming the bill would “stifle” the sector, impact thousands of jobs, and drive players to the black market.

In its statement, iDEA urged Congress to reject the “misguided federal mandate” and trust the systems already put in place by state regulators. 

The iDEA statement read: “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. 

“By restricting legitimate tools used by operators to ensure the safety of players and enhance the user experience, the federal government risks pushing more consumers toward unregulated, illegal markets — where no safeguards exist. 

“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 AGA had previously promised to oppose any legislation that tried to limit sports betting advertising.

The AGA’s senior vice-president of government relations, Chris Cylke, claimed the proposed legislation was a “slap in the face” to lawmakers and regulators across the country.  

He said: “Today’s regulated sports wagering operators are contributing billions in state taxes across the US, 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.” 

Should the SAFE Bet Act come into law, legislators across the US would be given one year to implement its requirements in full.  

Any states looking to legalize sports betting from that point forward would be obliged to apply to the respective Attorney General, including a detailed outline of how the new standards would be adhered to.

The public health component of the bill would authorize the Substance Abuse and Mental Health Services Administration (SAMHSA) to conduct a National Sports Betting Survey.  

The Surgeon General would also conduct a report on the public health impacts associated with sports betting, with a particular focus on young adults.