Lawmakers Propose New Federal Regulations for Sports Betting

Some members of Congress aren’t happy with how states are regulating sports betting.

US Sen. Richard Blumenthal (D-CT) and US Rep. Paul Tonko (D-NY) have announced the launch of Truth and Integrity: The Movement for Gambling Reform. According to lawmakers, the initiative will fight to add federal regulations. This would establish universal guidelines across all betting states and ensure bettors are properly protected.

Lawmakers have partnered with the Public Health Advocacy Institute (PHAI) and Families and Friends of Gamblers (FFOG) to support their efforts.

“We’ve Had Enough”

One of the main drivers behind the new initiative is the belief that sports betting, including sports prediction markets, has grown out of control. This is evidenced by the continued growth of problem gambling, as well as controversial business practices like limiting bettors. 

While states are fighting to get things under control, each market has its own rules and regulations. As a result, a change in one state doesn’t affect the rest of US markets.

In a press release confirming the new initiative, PHAI Director Dr. Harry Levant said US residents have had enough.

We will continue to gain bipartisan support in both chambers of Congress. There is overwhelming evidence that we are in the midst of a mental-health and public-health crisis related to gambling addiction. This movement is just the beginning. It is a cry from the nation that we've had enough.

Movement Works on Three Fronts

The new initiative will work on three separate fronts.

The first front is the US Congress, where proponents will call on lawmakers to take action. This includes things like public hearings and establishing federal guidelines. With all states represented, this creates a chance to gain buy-in from lawmakers and regulators across the US.

The second is the state level, where the movement will call on local lawmakers to work with their federal counterparts. Instead of fighting for regulatory control, they hope to convince states to accept the help being offered.

The final front is with the US public, who are most affected by the problem of gambling. This effort will include advocacy to build support and pressure state legislatures. 

Effort Will Face Pushback

The fight against problem gambling is a focus for all betting states, but that doesn’t mean they’ll accept the new movement.

This was the case when Blumenthal and Tonko partnered on the SAFE Bet Act. This would have added nationwide protections for bettors. However, many states declared the effort federal overreach that wasted the time and effort they spent on building their markets. 

There is also a financial factor in the fight against problem gambling. We’ve seen states consider severe regulations to address the issue, but almost all have failed because of the projected impact on tax revenue from sports betting.

States use tax revenue to support things like school systems, youth athletics, retirement funds, and even freshwater projects. Federal regulations could significantly reduce that revenue, triggering new crises across the country.