Introduction of Bill to Prohibit In-Game Sports Betting Ads and Wagers on College Athletes: U.S. Lawmakers
Democratic Congressman Paul Tonko of New York and Democratic Senator Richard Blumenthal introduced a bill this Thursday. It has shaken the online sports gambling industry, and for all the right reasons, one might say. The proposed bill aims to impose a ban on in-game advertising and bets. This will be specifically applicable to college athletes. It further aims to forbid the use of credit cards and prop bets.
Paul and Richard believe that online sports betting poses significant harms, and their rapid expansion is only exacerbating this issue by exploiting young athletes.
Key Provisions of the SAFE Bet Act
For starters, a key provision of the bill is to ban in-game betting ads. While the industry regulates itself to limit the number or duration of in-game ads, there is a belief that current attempts are insufficient and more action is necessary. Therefore, the proposed bill aims to eliminate the segment of such advertisements during live events.
The lower the gambling exposure, the better it would be for young athletes and gamblers in general. Blumenthal has even called it a matter of public concern. He further stated that the bill’s introduction was more of a response to stop addiction, save lives, and protect youngsters from exploitation.
Next, prohibiting bets on college athletes encourages betting on their performance. This includes banning prop bets, which have odds about the number of passing yards a QB racks up in the game. Such a proposal is essentially intended not only to protect young athletes from exploitation but also to ensure that there is no undue pressure on them.
Not using credit cards for gambling could be an effective move. Gamblers end up exceeding their limits, which are later evident from their credit statements. Easy availability of credit degrades the matter to such an extent that gamblers shift to an endless series of debts. Thereby, ruining their finances and lives.
The bill introduces a way to control making deposits on a platform. It mandates that operators not accept more than five deposits within a 24-hours timeframe. The bill also seeks operators to check if the customer can afford to deposit more than $1,000 in a single day or $10,000 in one month.
States must adhere to federal sports betting standards to safeguard customers from the negative impacts of online sports betting.
Harry Levant, the Director of Gambling Policy at the Public Health Advocacy Institute at Northeastern University School of Law, supports the bill. Harry said that currently, the opposite is happening in the industry in comparison to how other addictive products and substances are regulated.
According to the National Council on Problem Gambling, gambling problems may increase as sports gambling experiences exponential growth.
Opposition from the Gambling Industry
The bill will impact how US betting sites operate, especially with the proposed ban on in-game betting ads and college athlete bets. As the bill progresses, it may reshape regulations and alter the landscape of online sports betting across the country.
This has triggered a series of reactions from the gambling industry.
The gambling industry said that it has self-regulated sports betting advertisements so that the federal government does not impose standards on it. The AGA stated that the industry already operates under the government’s supervision, adding that it contributes in the form of taxes and consumer protection. The American Gaming Association further stated that bringing such federal prohibitions was nothing but a slap in the face to state legislatures and gaming regulators.
That statement comes after investing efforts and time to develop the industry under thoughtfully crafted frameworks that are uniquely applicable to their jurisdiction. Suffice it to say, critics are not pleased with those measures.
Potential Impact on the U.S. Sports Betting Industry
Sports betting is a legal activity in 38 states and Washington, D.C. Therefore, implementation of the SAFE Bet Act could have a heavy effect on the industry. It could take away the privilege of architecting jurisdiction-based frameworks, ultimately affecting the user experience. The bill’s potential to reshape the industry’s operations and regulation is undeniable. However, it is equally important to have a federal framework in place that extends the approach that is currently in use by the online gambling industry.
Conclusion
The Bill proposed by Paul Tonko and Richard Blumenthal has its pros and cons. Suffice it to say, pros could outweigh cons, given that the lives of young athletes are at stake. There is also a dire need to keep a safe check on gamblers who often lose their way into gambling problems.
