Tonko Proposes SAFE Bet Act, Regulating Sports Betting Industry to Protect Gamblers

29

On Thursday, U.S. Representative Paul Tonko (D-New York) introduced legislation aimed at placing federal regulations on the burgeoning sports betting industry, which is currently legal and operational in 38 states plus Washington, D.C. The Supporting Affordability & Fairness With Every Bet Act (SAFE Bet Act) seeks to enforce a series of stringent conditions on state gaming regulators.

The proposed law mandates sportsbooks to limit bettors to no more than five deposits per 24 hours and to conduct “affordability checks” on those placing large wagers, ensuring that gamblers have the financial capacity to risk such amounts. Additionally, it would prohibit sportsbooks from accepting deposits via credit cards.


TRUSTED PARTNER ✅ Bitcoin Casino


Under the SAFE Bet Act, sports betting companies would also face restrictions on advertising, banning promotional activities between 8 a.m. and 10 p.m. and during all live sports broadcasts. Certain advertisements, such as those offering “risk-free bets” and deposit bonuses, would be excluded.

Further provisions in the bill prohibit the use of artificial intelligence by sportsbooks to generate personalized promotions and bonuses based on betting history. AI would also be banned from crafting microbetting odds and in-game lines.

Representative Tonko and his Senate counterpart, U.S. Senator Richard Blumenthal (D-Connecticut), represent states where retail and online sports betting is legal. Both lawmakers argue that the sports betting industry poses significant societal risks and necessitates greater regulation.

Tonko drew a parallel between the proposed affordability checks and ensuring a drunk person cannot buy more alcohol. “For over six years, the U.S. sports betting industry has been working itself deeper and more directly into the lives of the American people. Now, every single solitary moment of every sporting event has become a betting opportunity,” Tonko stated outside the Capitol. He emphasized the pervasiveness of sports betting advertisements and their potentially harmful impact, highlighting the urgent need for federal intervention.

Senator Blumenthal, who supports the SAFE Bet Act out of concern for mental health and addiction, clarified that the legislation does not seek to ban gambling but rather to outlaw exploitative practices targeting vulnerable individuals. “We’re stopping the promotions, enticements, bonuses, and credits that target losers,” Blumenthal said. He reiterated the industry’s tactic of targeting “losers” to maximize profits.

However, the American Gaming Association (AGA) strongly disagreed with Tonko and Blumenthal’s assessment, asserting that existing state regulations are sufficient. Chris Cylke, the AGA’s senior vice president of government relations, argued that current regulated sports wagering operators contribute billions in state taxes and protect consumers from illegal bookies and offshore websites. He described the proposed federal prohibitions as “a slap in the face” to state legislatures and gaming regulators who have invested considerable effort in developing and continuously improving their regulatory frameworks.