Debate In The US Over Federal Regulation of Sports Betting

The US Senate Judiciary Committee recently held a hearing to explore the possibility of federal regulation of sports betting. The discussion centred on the industry’s impact on sports integrity, public health, and challenges faced by athletes. Since the legalisation of sports betting across many states in the US, there has been growing support for regulations on a federal level. Initiatives for federal regulation concern only sports betting and do not include online casino gambling.

Following the 2018 Supreme Court ruling that overturned a 1992 federal law, sports betting has become legal in 38 states and Washington, D.C. This year, Missouri will join as the 39th US state to permit sports betting. Increasingly, experts and politicians are advocating for uniform nationwide rules instead of the current patchwork of state-specific laws. The next step involves further discussions and assessments by lawmakers, regulators, and stakeholders.

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Concerns over Public Health

Senator Richard Durbin, a Democrat from Illinois and chair of the committee, argued that the lack of federal oversight has contributed to a public health crisis. An estimated 2.5 million Americans suffer from severe gambling problems annually, whilst an additional 5 to 8 million deal with milder gambling issues. Durbin believes that federal regulation could improve oversight and provide more effective measures to combat problem gambling.

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Integrity and Safety in Collegiate Sports

Charlie Baker, president of the National Collegiate Athletic Association (NCAA), highlighted a rise in integrity issues and threats directed at college athletes and coaches. He linked these problems to the growing prevalence of legal sports betting.

Under Baker’s leadership, the NCAA has successfully lobbied to ban “prop bets” – wagers on specific individual athlete performances rather than game outcomes – in several states. Baker views federal regulation as an opportunity to implement a nationwide ban on such bets, which he argues undermine the integrity of sports.

Harry Levant, director of gambling policy at the Public Health Advocacy Institute, also supports federal regulation, citing concerns over high-risk gambling practices like live betting, misleading marketing, and the use of VIP hosts. These hosts, employed by gambling companies, target high-stakes bettors with personalised offers to encourage continued play.

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Opposition From the Gambling Industry

Despite growing support for federal oversight, the idea faces resistance from the gambling industry. According to The New York Times, David Rebuck, a former regulator in New Jersey and now an advisor to the American Gaming Association (AGA), argued that states and tribal jurisdictions are better equipped to address the industry’s challenges. He pointed to existing measures like self-exclusion lists and partnerships with addiction treatment centres.

The AGA has also criticised the SAFE Bet Act, a proposed bill seeking to impose limits on gambling advertisements, introduce affordability checks, and restrict the use of artificial intelligence in betting. Bill Miller, president of the AGA, expressed confidence that federal pressure on the industry would ease under a Republican administration.

Despite the opposition, Senator Durbin remains optimistic about the prospects for federal regulation. Following the hearing, he noted that there are “openings and opportunities” for national guidelines. Senator Thom Tillis, a Republican from North Carolina, proposed the establishment of an independent commission to develop federal standards for the industry.

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Online Gambling In The US

In the United States, online casino gambling and sports betting are regulated at the state level, resulting in a patchwork of laws that vary widely across the country. Each state determines whether these activities are legal within its borders, sets the licensing requirements, and establishes rules for operators and players. For example, states like New Jersey, Pennsylvania, and Michigan allow both online casino gambling and sports betting, whilst others, such as Utah and Hawaii, prohibit all forms of gambling. Additionally, tribal jurisdictions often have their own regulations under federal law. This decentralised approach means that residents and operators must adhere to the specific rules of the state they are in. Online gambling companies need to obtain a licence for each state they want to operate in.

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