SAFE Bet Act Discussions Return on March Madness

Representative Paul Tonko and Senator Richard Blumenthal have announced they will reintroduce the SAFE Bet Act in Congress. They claim they don’t oppose digital gambling but wish to curb the illegal market. Check out this article for more details on the Act.

What is the SAFE Bet Act?

Discussion around the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act began on March 19th, 2024. Representative Tonko and Senator Blumenthal were concerned with the harmful effects of sports betting. As such, they prepared a bill that would aim to protect players and reduce the frequency of advertising by:

• Banning gambling advertisements between 8 am and 10 pm
• Limit gamblers to five deposits per day
• Ban VIP programs
• Establish a national self-exclusion list

One of the most crucial aspects is the proposal for federal regulation. Under the Act, states must obtain approval from the federal attorney-general to continue providing sports betting. Licenses would last for three years. States must also provide detailed proof that they meet all the requirements.

New additions to the SAFE Bet Act

While the overall bill remains largely the same, the congressmen have added a new provision. States would have to work alongside the government to stop the illegal market. That is due to a recent trend of states preparing bills to ban sweepstake casinos. Many states have also been cracking down on offshore sportsbooks.

The SAFE Bet Act will also focus on preventing the use of AI. According to lawmakers, AI technology is often used to track the habits of gamblers and allows them to make custom offers to entice players. The bill would also ban any VIP programs, and there are plans to ban specific wording like “bonus” in advertisements.

SAFE Bet Act will ban specific markets

Another significant aspect of the Act is the ban on specific markets. Live betting will be prohibited, such as bets on the number of fouls and college sports prop bets. Live betting has become increasingly popular, but lawmakers are concerned it can make sports betting more addictive. There are also concerns college players may be harassed over results.

The bill also aims to set a national gambling age of 21 for all forms of gambling, which would override some states that have it at 18. Alongside these proposals, congress is discussing the Gambling Addiction, Recovery, Investment and Treatment Act. It would set aside part of the federal excise tax on wagering to responsible gambling initiatives across the US.

Opposition to the Act

Although the bill hasn’t been filed yet, it likely won’t meet a more favorable reception than last time. During its previous proposal, the industry and many state legislators opposed the Act, as it would prohibit betting on a federal level again. Some even claim the bill is unconstitutional as it aims to reverse PASPA.

Responsible gambling advocates were also against the bill, as its scope was too narrow. Preparing a self-exclusion list would be too difficult as gathering data can be challenging. There are also concerns that a total ban would increase the illegal market. Most critics of the Act agree that it’s better to focus on self-regulation.

Conclusion

Overall, it is uncertain if the bill will succeed even if it gets introduced. The text hasn’t had significant changes since its previous introduction and has been widely unpopular. Regardless, the discussions will start again during March Madness, so we will keep you updated with any news.