New York Rep. Paul Tonko seeks to tighten sports betting advertising regulations on a federal level through the SAFE Bet Act, expected to be introduced later this year. Federal restrictions will be more uniform than the various laws in individual states.
“We put a framework out, now we are word smithing it,” Tonko told Legal Sports Report. “We are networking with folks to make certain we get (the bill) exactly as we intended.”
Tonko’s legislation centers on three areas:
- Advertising
- Affordability
- Artificial Intelligence
Several states have specific regulations around advertising and the language used to entice customers.Tonko listed individual state laws as they pertain to advertising and promotions.
Ohio regulators prohibit sportsbooks from promoting “free bets” or “risk-free” when customers have to wager their money first. That rule eliminated those words from the sports betting syntax.
Logos at Massachusetts stadiums must include “21 and over” language.
Maine sportsbooks can’t rely on celebrities in advertising, nor promote bonus offers.
A group of Pennsylvania lawmakers hope to prevent customers from utilizing credit cards to fund online gambling accounts.
The SAFE Bet Act would bar “programming designed to induce gambling with ‘bonus,’ ‘no sweat,’ ‘bonus bets,’ or `odds boosts.” Tonko also plans to ban betting ads during live sporting events.
“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),” he told LSR.
The federal legislation would also exclude sportsbooks from taking more than five deposits during a 24-hour period.
A related rule would include affordability checks on customers before any large bets, the size of which still needs to be determined.
The SAFE Bet Act eliminates the use of artificial intelligence to measure player habits or put together personalized promotions.
