Federal Bill Targets AI and Credit Cards in ‘Addictive’ Sports Betting

A newly proposed bill would require states that allow sports betting to meet minimum federal standards covering advertising, affordability and artificial intelligence.

The SAFE Bet Act was introduced Thursday (Sept. 12) by Congressman Paul D. Tonko, D-.Y., and Sen. Richard Blumenthal, D-Conn., according to a press release issued Friday (Sept. 13) by Tonko’s office.

The bill aims to address the public health impact of sports betting and create a “safer, less addictive product,” the release said.

The SAFE Bet Act would prohibit the use of artificial intelligence to offer individualized promotions based on a player’s gambling habits and to create gambling products, according to a fact sheet released Friday by Tonko’s office.

It would also focus on affordability by limiting the number of deposits operators can take from a customer in a 24-hour period, requiring operators to conduct “affordability checks” on customers before accepting wagers above certain thresholds, and prohibiting operators from accepting deposits via credit card, the fact sheet said.

On the advertising front, the SAFE Bet Act would ban sportsbook advertising during live sporting events and certain programming designed to induce gambling, per the fact sheet.

Tonko said in the press release that there has been a rise in gambling disorders because betting opportunities have become so widespread.

“We have a duty to protect people and their families from suffering the tremendous harm related to gambling addiction,” Tonko said.

Blumenthal added in the press release: “This bill is a matter of public health. It is a matter of stopping addiction, saving lives and making sure that young people particularly are protected against exploitation.”

The American Gaming Association, a casino gaming industry trade group, released a statement Thursday addressing the SAFE Bet Act, saying that regulated sports wagering operators contribute billions in state taxes, protect consumers from bookies and illegal offshore websites, and work to ensure responsible and positive play.

“Six years into legal sports betting, introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks unique to their jurisdictions, and have continued to iterate as their marketplaces evolve,” Chris Cylke, senior vice president of government relations at the American Gaming Association, said in the statement.

It was reported Sept. 6 that in the time since a Supreme Court ruling overturned a law that prevented state-sanctioned sportsbooks in 2018, over $220 billion has been wagered in the U.S. sports gambling industry.