Sports betting has grown explosively across the United States over the past six years, and in response, two lawmakers have introduced legislation to implement federal regulations targeting the practice.
Rep. Paul Tonko, D-N.Y., and Sen. Richard Blumenthal, D-Conn., introduced Thursday Support affordability and fairness for every bet, or the Safe Betting Actwhich seeks to ensure that sports betting operators comply with minimum federal standards and attempts to address the public health impacts of legalized sports betting.
“The relationship between the gambling industry and sports has reached unbearably dangerous levels, and it’s long past time for Congress to step up and make changes,” Tomko said in a statement. press conference Thursday.
The Supreme Court struck down the federal ban on sports betting in 2018. The industry has released record $11 billion By 2023, this number will increase by 44% from the previous year, according to the American Gaming Association.
It also generates billions of dollars in new revenue for states as they get a piece of the pie through taxes.
Rapid growth has led operators to invest heavily in acquiring customers through advertising, promotions and inducements.
“Now, every solitary moment at every sporting event around the world has become a betting opportunity, whether you’re scrolling through social media, driving past billboards on the highway, or listening to your favorite podcast or radio station, Sports Gambling ads are all there to provide you with endless flashy promotions,” Tonko said.
Gordon Douglas attended the news conference with lawmakers and said he and his son, Andrew Douglas, 28, have seen firsthand the challenges of gambling addiction. Gordon Douglas said his son, an athlete and coach, signed with a gambling company and then received promotions and advertising from at least six other companies.
“He became a different person who would say anything to make money gambling,” he said. “At one point he wanted to take his own life because he couldn’t see a way out.”
The Douglas family is not alone – an estimated 7 million people in the United States have a gambling problem, and one in five problem gamblers have attempted suicide. National Institutes of Health and national council on problem gambling.
one July report Studies have found that states with legalized gambling have a 25% to 30% increase in the odds of filing for bankruptcy.
Lawmakers say they are not trying to ban sports gambling, but they are simply trying to ensure the public can safely enjoy sports gambling by promoting national standards.
“State regulation is weak and immature. That’s why we need a national standard – not to ban gambling – but just to take back control of an industry that crosses the line,” Blumenthal said Thursday.
The bill addresses three key areas related to sports betting: advertising, affordability and artificial intelligence.
“The industry is leveraging the most advanced technology to make the most money,” Blumenthal said of artificial intelligence.
He said he wanted to ban the use of artificial intelligence to track players’ gambling habits and personal promotions.
The bill also pushes for advertising reforms that would include banning sportsbooks from running gambling ads during live sporting events designed to induce “no-sweat” or “bonus” type bets.
Finally, the bill limits customer deposits to 5 in a 24-hour period. It will require bookmakers to ensure that customers placing bets of more than $1,000 are able to do so.
“The gambling industry is following a playbook set by the tobacco industry, which poses a direct threat to public health,” said Richard Daynard, a Northwestern University law professor and chairman of a public health advocacy group.
Meanwhile, sports betting players are fighting back, saying the industry has brought benefits.
Chris Cylke, senior vice president of government relations for the American Gaming Association, said the bill is a “slap in the face” for state regulators and gaming operators who have invested significant time and resources in developing the framework as the market evolves.
“Today’s regulated sportsbooks pay billions of dollars in state taxes across the United States, protect consumers from dangerous community bookmakers and illegal offshore sites, and work with more than 5,000 state and tribal regulators and Other stakeholders worked hard to collaborate to ensure commitment to accountability and active participation,” Clerk said.
The bill also faced public opposition from Rep. Dina Titus, D-Nev., who called the Safe Betting Act “outdated” and “baseless.”
Douglas said his family has gotten help for his son, but he wants to make sure others don’t go down a similar path.
“As a country, we should not allow him and people like him to be exploited,” he said. “We should take the right steps to limit this type of gambling activity.”
If you are having suicidal thoughts or feeling distressed, please contact Suicide and Crisis Lifeline Please call 988 for support and assistance from a trained advisor.
—CNBC’s Contessa Brewer contributed to this report.
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