The debate over what the right amount of regulation is for the US gambling industry is back in the spotlight, this time prompted by two Democratic lawmakers asking for federal protections as sports betting and prediction markets continue to expand.
The “Truth and Integrity” Campaign
Sen. Richard Blumenthal of Connecticut and Rep. Paul Tonko of New York joined the Public Health Advocacy Institute and Families and Friends of Gamblers in Washington, DC, on September 23 for the launch of “Truth and Integrity: The Movement for Gambling Reform.”
The campaign wants to see serious changes brought to both federal and state gambling regulations.
Blumenthal and Tonko have already introduced legislation looking to clearly establish additional limits around sports betting.
Their SAFE Bet Act would require states that offer sports betting to meet federal standards that cover advertising, affordability, as well as the use of artificial intelligence. The lawmakers have also backed a separate bill targeting online prediction markets.
Under the SAFE Bet Act, operators would face restrictions on certain advertising practices and would have to conduct affordability checks before accepting larger wagers.
The legislation also includes provisions concerning deposits, self-exclusion and the use of technology to track customers and create personalized promotions.
The Prediction Markets Security and Integrity Act, introduced by Blumenthal in March with Sen. Andy Kim, would establish federal consumer safeguards while returning regulatory authority over prediction markets to individual states.
The bill addresses issues including underage use, fraud, market manipulation, and the conditions under which bets are settled.
At the September 23 event, Blumenthal argued that gambling companies, including sports betting operators and prediction market platforms, are benefiting from vulnerable customers. Tonko said the goal is to take a possibly addictive product for consumers and make it considerably safer.
The Public Health Advocacy Institute’s Dr. Harry Levant described gambling addiction as a public health concern and said the new campaign would seek support in Congress and at the state level.
“This movement is just the beginning. It is a cry from the nation that we’ve had enough,” Levant said.
Push Back from the Industry
As expected, greater federal involvement is not currently wanted in the industry, with the American Gaming Association (AGA) arguing that sports betting is already regulated by state and tribal authorities and opposing efforts that would weaken that system.
The AGA further explained that prediction markets offering sports-related contracts are operating outside state regulatory frameworks.
The disagreement is particularly relevant as prediction markets expand into sports-related contracts.
The AGA has argued that these products should be subject to the same type of oversight as traditional forms of sports betting.
Similarly, prediction market operators have claimed that they fall under federal commodities regulation rather than state gambling laws.