U.S. Congressmen Propose Bill for Federal Regulation of Sports Betting

American congressmen Paul Tonko and Richard Blumenthal have introduced a bill aimed at establishing federal standards for the sports betting industry in the United States. If passed, the new regulations will affect both online betting operators and land-based bookmakers. The initiative aims to create uniform rules across the country and strengthen oversight of bookmakers’ activities.

The key provisions of the bill include:

• Submitting an application to the Department of Justice to open a regulated betting market in individual states.
• Banning sports betting advertisements from 8 AM to 10 PM.
• Limiting celebrity endorsements of sports betting companies.
• Prohibiting the use of artificial intelligence to track users’ betting habits.
• Banning micro-betting — bets on specific moments of the game, such as baseball pitches or football passes.
• Limiting the number of deposits per player to no more than five per day.
• Prohibiting the use of credit cards to fund betting accounts.

States that legalized sports betting before this federal law was enacted will have to bring their regulations in line with the new rules within a year.

The proposal has sparked a negative reaction from representatives of the gaming industry. The iDevelopment & Economic Association (iDEA) called the intervention “unnecessary and harmful,” noting that states have successfully regulated this sector since 2018, when the Supreme Court overturned the federal ban on sports betting. The American Gaming Association (AGA) also opposed the bill, calling it a “slap in the face” to state regulators and legislative bodies.

Roman Baranovskyi, Senior Lawyer at SBSB Fintech Lawyers, commented on the news: “The U.S. is trying to establish unified rules for the regulation of sports betting, which could be an important step for the industry. For operators, this is a great opportunity, as they would be able to operate across the country without needing separate licenses in each state. This will significantly simplify entry into the American market, which has been highly fragmented due to differing regulations in each state.

However, federal regulation could also create new challenges. Regulating betting at the state level was easier. The attempt to establish uniform standards for all could lead to difficulties in controlling betting platforms. On one hand, it will be easier for businesses, but on the other, there could be a rise in new platforms that are harder to monitor. This, in turn, could lead to negative consequences associated with the proliferation of betting platforms and exacerbate the issue of control on a national level.”