Federal regulations on sports betting advertisements are being discussed in the legislature and at the center of it all is a bill called the SAFE Bet Act, which would implement parameters on how mobile sports betting platforms promote their brands.
Setting the Rules
US Representative Paul Tonko of New York is concerned that mobile sports betting sites are employing predatory advertising that could negatively impact minors and others who may be vulnerable.
To that end, the congressman has established the SAFE Bet Act, a federal bill that would set guidelines on sports betting advertising across the nation, taking it out of the hands of individual states to determine what is, and what is not, allowed by establishing minimum federal guidelines.
Addressing the Issue
When asked if the bill was a measure to force the sports betting industry to self-regulate its advertising campaigns, Tonko responded, “No, I’m serious about the bill. I think that ever since sports betting became legalized in a widespread fashion, the industry has been operating in, I think, a Wild West, largely unregulated environment. I think you can clearly see this in the wall-to-wall advertising that you catch anytime you’re tuning into a sporting event or scrolling through social media.
“Even worse, I think these advertisements are largely predatory in nature, with big gambling companies offering risk-free or no-sweat bets while simultaneously offering hundreds of thousands of dollars in free bets. I think the tactics have one clear purpose and that’s to hook and retain a new generation of consumers.”
According to a fact sheet provided by Tonko, between 60%-80% of high school-aged youths have gambled for money.
What’s in the Bill?
Several facets of Tonko’s bill include not only advertising regulations but limits on sports betting deposits and the use of artificial intelligence to track users’ betting habits triggering tailored promotions specifically based on that bettor’s past wagers.
The SAFE Bet Act’s mission statement is as follows: “Requiring states that offer sports betting to meet minimum federal standards in advertising, affordability and AI will create a safer, less addictive product, while still preserving the freedom to bet for those who wish to do so.”
The major thrust of the bill is to establish minimum federal standards concerning advertising, affordability, and artificial intelligence. The key elements are as follows:
Advertising
- Prohibits sports betting broadcast advertising between 8 am – and 10 pm local time.
- Prohibits sports betting advertising during live sporting events.
- Prohibits sports betting advertisements designed to induce gambling with “bonus”, “no sweat,” “bonus bets,” odds boosts, or similar promotions.
- Prohibits sports betting advertising designed to induce the use of gambling products by showing the audience how to gamble or explaining how wagers work.
Affordability
- Prohibits operators from accepting more than 5 deposits from a customer in a 24-hour period.
- Prohibits operators from accepting deposits via credit card.
- Requires operators to conduct ‘affordability checks’ on customers before accepting wagers in excess of certain amounts in a 24-hour or 30-day period.
- Requires operators to check the National Clearinghouse for Self-Exclusion before allowing customers to place bets.
Artificial Intelligence
- Prohibits the use of AI to track individual player’s gambling habits.
- Prohibits the use of AI to create individualized offers and promotions to customers.
- Prohibits the use of AI to create gambling products, such as microbets.
- Generally, prohibits bets on amateur sports, with some exceptions for Olympics, Paralympics, and College Sports.
- Prohibits all proposition bets featuring college and amateur athletes.
“We’re not looking to outlaw gambling,” Tonko said. “I think this unrestricted, wild west environment is not helpful to anybody and we think it’s necessary to have some restrictions so there are not these targeted audiences that are preyed upon (by advertising).”
