On Tuesday, Rep. Paul Tonko announced plans to bring in new legislation that would place strict limits on how US sports betting companies market their services.
Since 2018, the sports betting industry has operated in a largely unregulated, ‘Wild West’ environment, according to Tonko, witnessing record revenue. Tonko also voiced his concerns about the addictive nature of sports gambling and the lack of safeguards to protect consumers.
Tonko has previously introduced legislation targeting the sports betting industry. In February 2023, he brought in the ‘Betting on Our Futures Act’, which focused on sports betting advertising.
Here’s what Tonko’s new SAFE Bet Act aims to implement:
- Ban sports betting ads during live sporting events.
- Prohibit the use of terms like “bonus” or “no sweat” in sportsbook advertising.
- Ban credit card deposits on sportsbook platforms.
- Limit users to five deposits within a 24-hour period.
- Prevent gambling operators from using AI to track gambling habits or design targeted prop bets.
The proposed SAFE Bet Act is based on the ban on tobacco advertising, and aims to ban all forms of online and electronic advertising for sports gambling.
In a recent statement, Tonko criticized the way sports betting companies advertise. He called their tactics “predatory” and said they’re designed to “hook and keep a new generation of consumers.”
Tonko said: “Just as in the tobacco industry, when it became clear that it was a public health issue, we’ve now replaced Joe Camel with celebrity spokespeople and free products.”
When PASPA was overturned in 2018, it handed over control of sports betting to individual states. Since then, 37 states have rolled out legal betting markets. Altogether, sportsbooks have handled more than $330 million in wagers so far.
The American Gaming Association (AGA) hasn’t said much about Tonko’s proposals yet. They’ve decided to wait until the full bill is introduced before making any comments.