The sports betting industry in the U.S. has been growing at a rapid pace, and lawmakers have started to take notice. On Thursday, a new bill was introduced on Capitol Hill that could impose federal regulations on an industry that, until now, has been largely governed by state laws. The “Supporting Affordability and Fairness with Every Bet Act,” or SAFE Bet Act, led by Senator Richard Blumenthal (D-CT) and Representative Paul Tonko (D-NY), is designed to bring a national standard to sports betting in the U.S.
This bill has sparked a heated debate, with some seeing it as a necessary step to protect consumers. In contrast, others argue that it interferes with the regulatory frameworks states have worked hard to develop. So, what does this bill mean for the future of sports betting in America, and how might it affect Pay Per Head bookies and the broader gambling industry?
What the SAFE Bet Act Proposes
The SAFE Bet Act introduces three major areas of regulation: advertising restrictions, affordability checks, and limitations on the use of artificial intelligence (AI) by gambling companies. If passed, this bill could fundamentally change how sports betting operates in the U.S.
First, the proposed legislation seeks to limit when and where sports betting advertisements can appear. Under the new rules, ads would be banned between 8 a.m. and 10 p.m., and no advertisements could air during live sporting events. Additionally, the bill targets popular promotions like “bonus bets” and “no sweat bets,” which are common in the industry. The restrictions aim to curb the aggressive marketing tactics used by betting companies that lawmakers say can entice vulnerable individuals, particularly younger people, into gambling.
The second component of the bill focuses on affordability checks. The legislation proposes a cap on deposits, limiting bettors to five deposits within a 24-hour period and banning the use of credit cards for betting transactions. Bettors who exceed $1,000 in wagers within a day would be subject to additional scrutiny, as operators would be required to perform affordability checks. If a person’s gambling exceeds 30% of their income, they would be prohibited from placing further bets.
Finally, the SAFE Bet Act tackles the growing use of artificial intelligence in sports betting. The bill would ban gambling operators from using AI to track individual gambling habits and promote personalized betting offers. Lawmakers have raised concerns over “microbetting,” a form of betting that allows gamblers to wager on small, in-game events like the outcome of a single play. They argue that AI-driven microbetting could push people into unhealthy gambling behaviors, and the bill seeks to curtail these practices.
Pushback from Betting Industry Stakeholders
While proponents of the SAFE Bet Act argue that the bill is necessary to protect consumers, especially from gambling addiction, the proposed legislation has not been warmly received by everyone. Many industry stakeholders have voiced concerns about the federal government’s involvement in what they see as a state-regulated issue.
State legislatures and gaming regulators have been working for years to develop frameworks that suit their individual markets, and industry groups argue that federal oversight undermines these efforts. Chris Cylke, Senior Vice President of Government Relations for the American Gaming Association, criticized the bill, stating that it’s “a slap in the face to state legislatures.” Cylke and others believe that states are more equipped to manage their gambling industries because they can tailor regulations to the unique needs of their jurisdictions.
Representative Dina Titus (D-NV), an advocate for gaming legislation, also spoke out against the bill. She described it as “outdated and unwarranted,” arguing that restricting advertising and imposing federal regulations on bet types would do more harm than good. Titus emphasized that state regulators have done a good job of managing the industry and that adding another layer of federal oversight would complicate things unnecessarily.
Despite the backlash, lawmakers behind the SAFE Bet Act believe that the gambling industry needs national regulations to prevent addiction and protect consumers. Senator Blumenthal has pointed to the success of similar regulations in countries like the U.K. and Australia, where affordability checks and advertising restrictions are already in place. He insists that the bill is not about banning gambling but ensuring that it’s done responsibly and safely.
An Opportunity or a Threat for Pay Per Head Bookies?
As this bill continues to make its way through Congress, Pay Per Head bookies and the wider sports betting industry will need to keep a close eye on developments. While the SAFE Bet Act introduces stricter regulations, it also brings an opportunity for operators who can adapt to the new landscape. For Pay Per Head bookies, understanding the nuances of the bill and staying compliant could open doors to new business models that focus on responsible gambling and customer protection.
On the flip side, if the bill is passed, it could also impose significant restrictions on how bookies operate, particularly in the areas of advertising and customer acquisition. The challenge will be in navigating these changes while still maintaining profitability in a highly competitive industry.
