U.S. Lawmakers Introduce Bill To Combat Sports Betting Addiction

Bill would put in place national sports betting standards, including bans on the use of AI to detect and target potential problem gamblers with personalized ads.

Two U.S. lawmakers have introduced legislation to create national standards for online sports betting that could help protect consumers from gambling addiction and financial losses.

U.S. Senator Richard Blumenthal, from Connecticut, and U.S. Representative Paul D. Tonko, of New York, introduced the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act (PDF).

The bill is designed to address widespread impacts of mobile sportsbooks on the American public, as different state laws and regulations have been enacted in recent years after a ban on sports betting was lifted by the U.S. Supreme Court in 2018.

Online Gambling Concerns

Since the landmark decision, each state has been given the ability to decide whether to allow online sports betting for itself. This has resulted in an explosion of online sportsbooks nationwide, which has been accompanied by increasing reports of gambling addiction.

As sites like FanDuel and DraftKings have increased in popularity, critics have raised concerns about their effects on young people, who appear to be more susceptible to sportsbook marketing tactics. This is due to both their comfort in using digital payment systems and their inexperience at managing personal finances, many of whom are attempting to do so for the first time after leaving home.

In recent months, a growing number of consumers have begun pursuing individual and class action sports betting addiction lawsuits nationwide. Many of these filings claim that sportsbooks employ data-driven algorithms designed to target potential problem gamblers with aggressive promotions so that they wager more frequently and in large amounts, regardless of financial risks.

Gambling Addiction Legislation

The proposed legislation seeks to require states to meet minimum federal standards for sportsbook marketing, affordability and the use of artificial intelligence, specifically geared toward making sports betting less addictive and financially safer to use.

If enacted, the legislation would ban sportsbook marketing during live sports events, as well as several types of promotions, such as “bonus”, “no sweat” bets or boosting of odds. The platforms would be blocked from accepting more than five deposits from a customer in a 24-hour period, would be required to conduct “affordability checks” on individuals wagering in excess of $1,000 per day or $10,000 per month, and would prohibit the use of credit cards for making wager deposits.

The bill also seeks to block the use of AI to track gamblers’ habits, offer individualized promotions and create targeted microbets. Additionally, it would ban betting on college and amateur athletes and would require a Surgeon General’s report on sports betting health impacts.

The lawmakers detailed the legislation in late April at an international symposium on sports betting held by the Public Health Advocacy Institute (PHAI) in Boston, where they were keynote speakers. It was the first conference of its kind in the U.S.

During the conference, Blumenthal and Tonko warned that gambling addiction could become a public health crisis if stronger safeguards are not put in place. Both lawmakers said they still support allowing adults to participate in legal sports betting, but criticized the industry’s aggressive promotions and alleged disregard for the financial and personal harm suffered by customers.

The senator acknowledged the legislation will be difficult to pass in the current environment.

“We are facing a perfect storm of addiction fueled by technology designed to target customers in real time – especially young people. Fighting this industry is an uphill battle. We need better laws, stronger enforcement, and continued public advocacy, but I believe we will prevail.”

-Senator Richard Blumenthal (D-Connecticut)

Sports Betting Addiction Lawsuits

The legislation comes amid an increasing number of similar sports betting addiction lawsuits filed against sportsbooks nationwide, including DraftKings, FanDuel, BetMGM and others. These individuals say they are now fighting destructive gambling addictions caused by patronizing the sports betting apps.

The litigation is expected to continue to grow in the coming weeks and months, mostly through young, college-age men who claim they were targeted and exploited by sophisticated marketing tactics. These have led to consumers being manipulated into making higher and more frequent wagers, despite the financial and personal losses they are at risk of suffering.

Sports betting addiction lawyers are investigating claims across the U.S., focusing on whether these websites intentionally foster compulsive behavior and profit from users’ escalating losses. Platforms named in ongoing investigations include:

To find out whether you qualify for a sports betting lawsuit, submit information about your potential claim for an attorney to review. All cases are handled on a contingency fee basis, meaning you pay nothing unless a settlement is obtained in your case.

To stay up to date on this litigation, sign up to receive sports betting addiction lawsuit updates sent directly to your inbox.