Federal attention on US sports betting continues to build, and its time in the spotlight begins next week with a congressional hearing.
The US Senate Committee on the Judiciary set a hearing date for 10 a.m. Tuesday called, “America’s High-Stakes Bet on Legalized Sports Gambling.” The hearing will take a close look at the US sports betting industry.
Sen. Dick Durbin (D-IL) is the chair of the committee. Sen. Richard Blumenthal (D-CT) sits on the committee. Blumenthal is a co-author of the wide-ranging sports betting bill, Supporting Affordability and Fairness with Every Bet Act, or the SAFE Bet Act.
Heavy hitting committee on US sports betting
The Senate Judiciary Committee is full of heavy-hitting lawmakers.
It includes:
- Sen. Lindsey Graham (R-SC)
- Sen. Amy Klobuchar (D-MN)
- Sen. Chris Coons (D-DE)
- Sen. Cory Booker (D-NJ)
- Sen. Peter Welch (D-VT)
- Sen. Chuck Grassley (R-IA)
- Sen. John Cornyn (R-TX)
- Sen. Mike Lee (R-UT)
- Sen. Ted Cruz (R-TX)
- Sen. Josh Hawley (R-MO)
US sports betting bill
Blumenthal and Rep. Paul Tonko (D-NY) introduced the SAFE Bet Act earlier this year.
The SAFE Bet Act aims to “address the public health implications inherent in the widespread legalization of sports betting.”
The proposal would include a variety of regulations, including advertising standards and consumer protections like deposit limits.
SAFE Bet pushback
Not all politicians are on board with taking action against the industry, including Nevada Rep. Dina Titus (D-NV). Titus said it’s “better to have self-regulation or state regulation,” and not have federal involvement.
The American Gaming Association came out against the bill shortly after it was announced.
“Today’s regulated sports wagering operators are contributing billions in state taxes across the U.S., protecting consumers from dangerous neighborhood bookies and illegal offshore websites, and working diligently with over 5,000 state and tribal regulators and other stakeholders to ensure a commitment to responsibility and positive play,” Chris Cylke, the AGA senior vice president of government relations, said in the September statement. “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.”
Anticompetitive claims in US sports betting
Along with Blumenthal, two other senators who have called for scrutiny of the sports betting industry are also on the committee. Lee and Welch sent a letter last week asking the Federal Trade Commission to investigate anticompetitive practices by DraftKings and FanDuel.
“We can’t allow online gambling companies like FanDuel & DraftKings to violate antitrust laws, especially as more Americans grapple with the effects of this industry on our society,” Lee said last week.
Stifel analysts said there is “zero validity” to the claim.
