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The federal government is now turning its attention to the fast-expanding sports betting industry. The U.S. Senate Committee on the Judiciary recently held a hearing titled “America’s High-Stakes Bet on Legalized Sports Gambling” to explore the effects of legal sports wagering and its future regulation. This marks the first time Congress has formally scrutinized the industry since its rapid growth following the 2018 Supreme Court ruling that struck down the Professional and Amateur Sports Protection Act (PASPA).
Before the PASPA decision, Nevada was the only state with legal sports betting. Now, 39 states have joined the list, reflecting a dramatic shift in the gambling landscape. During its final session of 2024, the Judiciary Committee heard from a range of witnesses, including gambling policy experts, a former regulator, and a representative of the NFL Players Association (NFLPA).
Senator Dick Durbin (D-IL), chair of the committee, opened the discussion by emphasizing the need for Congress to evaluate how sports betting impacts Americans. He highlighted concerns about collegiate athlete harassment, recent betting scandals, and the rising issue of problem gambling. Durbin expressed particular concern over how online platforms make gambling accessible 24/7, potentially fueling addiction.
“A person with a gambling problem can chase the action at the click of a button and rack up ever-increasing losses—whether on an NFL game or professional table tennis,” Durbin said, as reported by WSIU. He urged gambling operators to take a more active role in mitigating these harms and called for a broader examination of how the industry should be regulated going forward.
The hearing featured testimony from five witnesses, each offering distinct perspectives. Among them were NCAA President Charlie Baker, former New Jersey gaming regulator David Rebuck, NFLPA representative Johnson Bademosi, gambling policy expert Harry Levant, and National Council on Problem Gambling (NCPG) Executive Director Keith Whyte.
Baker advocated for a federal ban on college prop bets, while Bademosi highlighted the negative impact of certain types of wagering on players and fans. He specifically called for restrictions on bets targeting negative outcomes. Whyte focused on three concerning trends: increasing gambling advertisements, advancements in technology, and more diverse betting opportunities. He warned that these factors could contribute to the rise of problem gambling.
Rebuck, drawing on his regulatory experience in New Jersey, argued against federal oversight. He maintained that states and tribal authorities are better equipped to regulate gaming. His stance contrasted with Senator Thom Tillis (R-NC), who suggested creating a federal task force to establish industry guardrails.
The discussion also touched on the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, co-authored by Senator Richard Blumenthal (D-CT) and Representative Paul Tonko (D-NY). The bill seeks to impose temporary restrictions on certain gambling activities. While some witnesses, including Bademosi and Levant, supported the measure, others had reservations. Rebuck described the proposal as unnecessary, reiterating his belief in state-led regulation. Whyte stated that the NCPG remains neutral on legislation proposing prohibitions.
Notably, the hearing did not include testimony from gambling operators or industry representatives, a gap that drew criticism from the American Gaming Association (AGA). In a statement, the AGA highlighted the absence of industry voices, stating that legal operators play a key role in consumer protection, responsible gaming, and maintaining the integrity of sports.
The AGA reaffirmed its commitment to robust state regulatory frameworks, asserting that they are effective in protecting consumers and promoting fairness in the sports betting space.
Durbin concluded the hearing by emphasizing that this is just the beginning of Congress’s investigation into sports betting. As discussions evolve, the challenge will be finding a balance between protecting consumers and preserving the autonomy of state-level regulation