The U.S. sports betting industry has been buzzing with controversy over the proposed Supporting Affordability and Fairness with Every Bet Act (SAFE). As expected, leaders in the industry have voiced their strong opposition, seeing the bill as a potential setback. The SAFE Act introduces a variety of new regulations that could change the face of sports betting, including limits on customer deposits, advertising restrictions, and federal oversight. While this may be the beginning of a long battle between regulators and the industry, Pay Per Head (PPH) bookies should stay informed on how this situation unfolds, even though it may not have an immediate impact on their operations.
What is the SAFE Act?
Introduced recently, the SAFE Act aims to provide a unified approach to sports betting regulation on a national level. Until now, sports betting has been primarily regulated by individual states, with 38 states already having their own frameworks in place. Many in the industry see the introduction of federal oversight as unnecessary, as state-level regulations have been functioning well for years.
One of the key components of the SAFE Act is its proposed restrictions on customer deposits. Under the new rules, customers would be limited to making five deposits within a 24-hour period, and credit card payments would no longer be allowed for sportsbook funding. These measures are intended to promote responsible gambling but are also seen as excessive by industry leaders.
Advertising restrictions are another major concern for operators. The bill proposes a ban on advertising during live sports events and between 8 a.m. and 10 p.m., significantly reducing the industry’s ability to attract new customers. FanDuel’s VP of Government Affairs, Cory Fox, voiced his concerns about these restrictions, arguing that they could push customers toward illegal offshore betting sites, ultimately hurting the regulated market.
These advertising limits, deposit restrictions, and affordability checks for larger wagers have left many questioning the bill’s practicality and whether it would truly help the industry or harm it.
Industry Leaders Speak Out
Opposition to the SAFE Act has been swift and strong. David Rebuck, the former director of New Jersey’s Division of Gaming Enforcement, was one of the most vocal critics, calling out the federal government’s lack of expertise in the field. According to Rebuck, the state-level regulatory frameworks already in place have proven to be effective, and there’s no need for the federal government to step in.
Rebuck’s frustration with federal intervention is echoed by other industry leaders who feel that the current system is working just fine. “It’s mind-boggling to me,” Rebuck said during a webinar, “that they think they know more than we do without working together on solutions.” The sentiment is shared by many in the betting industry, who see the SAFE Act as unnecessary meddling.
Another point of contention is the government’s track record in dealing with illegal offshore sportsbooks. Despite ongoing efforts by state regulators to clamp down on these operations, illegal betting sites continue to thrive. The American Gaming Association (AGA) has pointed out that billions of dollars are wagered on illegal platforms every year. Critics of the SAFE Act argue that if the federal government is serious about protecting consumers, they should focus more on shutting down illegal operators rather than imposing stricter regulations on legal ones.
What Should Pay Per Head Bookies Expect?
For now, Pay Per Head bookies don’t have to worry too much about the SAFE Act impacting their day-to-day operations. The bill is still in its early stages, and with significant opposition from industry leaders, it may face a difficult path through Congress. Election-year politics and general legislative gridlock are also expected to slow down any progress on the bill.
That said, PPH bookies would be wise to stay informed about how the situation develops. For now, PPH bookies should continue to focus on providing a top-notch betting experience for their customers while keeping an eye on any new developments related to the SAFE Act. The battle between regulators and the betting industry is just beginning, and while the outcome remains uncertain, staying informed is the best way to navigate the challenges ahead.
