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Federal Regulation of Sports Gambling: A Growing Debate

Last week, a Senate Judiciary Committee hearing spotlighted the rapid rise of sports gambling in the United States, hinting at the potential for federal oversight. The session underscored concerns about the industry’s impact on athletes, the public, and the integrity of sports, igniting discussions about whether a national framework is overdue.

A Legalisation Wave With Far-Reaching Impacts

The sports-betting industry has seen meteoric growth since the 2018 Supreme Court ruling that struck down a federal ban, paving the way for states to legalize the practice. Today, sports betting is legal in 38 states and the District of Columbia, with Missouri set to join the fold in 2025.

This expansion hasn’t come without consequences. As Sen. Richard Durbin, D-Ill., pointed out, “Sports betting has become a public health issue.” His remarks echo growing concerns about gambling addiction and the integrity of both professional and amateur sports.

Statistics highlight the scale of this issue. Americans wagered over $30 billion on sports in just the last quarter, according to the American Gaming Association. Meanwhile, the National Council on Problem Gambling estimates millions face gambling-related problems annually. Yet, there’s no clear consensus on who should address these challenges.

Senate hearing on sports gambling legislation

Voices From the Industry and Beyond

The committee’s witnesses represented diverse perspectives. NCAA President Charlie Baker flagged the uptick in integrity concerns and harassment tied to college sports betting. He supported the idea of federal regulations as a baseline for prop betting and other aspects of sports gambling. Under his guidance, the NCAA has already convinced several states to ban prop bets on college sports.

Another voice was Harry Levant of Northeastern University’s Public Health Advocacy Institute, who described concerning practices such as in-game betting and VIP incentives targeting frequent gamblers. He urged a crackdown on deceptive marketing and manipulative betting strategies.

On the other hand, David Rebuck, a former New Jersey regulator, argued against federal oversight, highlighting the effectiveness of state-led initiatives. Rebuck pointed to existing measures like self-exclusion programs and partnerships with addiction services as evidence that states and tribal jurisdictions are better suited to tackle these issues.

Legislative Challenges and Industry Pushback

Federal regulation of sports betting has faced significant hurdles. Proposals such as the SAFE Bet Act, introduced by Sen. Richard Blumenthal, D-Conn., and Rep. Paul Tonko, D-N.Y., include measures like advertising restrictions and affordability checks. However, these efforts have struggled to gain traction, facing fierce resistance from the gaming industry.

Bill Miller, president of the American Gaming Association, expressed confidence that federal scrutiny would ease under the current Republican-led government. “Less pressure” is expected, he noted, as industry players push back against measures they see as overly restrictive.

Still, the Senate hearing reflected bipartisan interest in creating a framework. Sen. Thom Tillis, R-N.C., floated the idea of an independent commission to establish guardrails for states, signaling a potential pathway to compromise.

What’s Next for Sports Betting?

The debate over federal regulation of sports betting is far from resolved. Proponents argue that a national approach is essential to protect vulnerable populations and ensure fairness in sports. Opponents counter that states are already addressing these issues effectively, rendering federal intervention unnecessary.

With billions at stake and public health concerns mounting, the discussion around sports gambling’s future is set to intensify. Whether federal oversight becomes a reality or the status quo prevails, the stakes couldn’t be higher.

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