Online Sports Betting Boom: Blumenthal Demands Federal Standards to Protect Consumers Against Problem Gambling

[WASHINGTON, DC] – U.S. Senator Richard Blumenthal (D-CT), a member of the Senate Judiciary Committee, underscored the public health impacts of the widespread legalization of sports gambling in a hearing titled, “America’s High-Stakes Bet on Legalized Sports Gambling.” As mobile sports betting surges, Blumenthal called for minimum federal standards like those in his Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act to better protect consumers from addictive practices and features of online sportsbooks and gambling platforms.

“We are in the midst of a sports betting boom that is one of the most severe public health problems today,” said Blumenthal. “It is the cause of addiction for millions of Americans with severe gambling problems. It is tearing apart families— literally divorces, abandonment. It is a criminal justice problem, when people get into trouble, and they have to pay back the debts that they owe—when I was U.S. Attorney, I prosecuted extortion and enforcement by the gangs. And of course, it is an unemployment problem, a mental health, behavioral health problem.”

Earlier this year, Blumenthal introduced the SAFE Bet Act alongside Congressman Paul D. Tonko (D-NY), which would require states offering sports betting to meet minimum federal standards in the categories of advertising, affordability and Artificial Intelligence to create a safer, less addictive product. Blumenthal is also the author of the Gambling Addiction Recovery, Investment, and Treatment (GRIT) Act, which sets aside federal funds to help prevent, treat, and study gambling addiction in the United States.

Video of Blumenthal’s remarks during today’s hearing can be found here. A transcript is available below. 

Sen. Blumenthal: Thanks, Mr. Chairman. I am very appreciative to you, Mr. Chairman, for holding this hearing and to the witnesses here today—not only for appearing but for your good work and your help to me in drafting the SAFE Bet Act and the GRIT Act. Mr. Whyte, Mr. Levant, Mr. Baker, particularly.

You know, we are in the midst of a sports betting boom that is one of the most severe public health problems today. It is the cause of addiction for millions of Americans with severe gambling problems. It is tearing apart families— literally divorces, abandonment. It is a criminal justice problem, when people get into trouble, and they have to pay back the debts that they owe—when I was U.S. Attorney, I prosecuted extortion and enforcement by the gangs. And of course, it is an unemployment problem, a mental health, behavioral health problem.

You know, the nomenclature and the techniques and the sophistication of the trading practices here make Wall Street look like child's play. The risk-free bet. The throttling. The targeting of losers. Customizing bets to those who are losing and throttling back the winners. I mean, the plethora of techniques is staggering here, all to the benefit of the corporations that are profiting here. And Mr. Baker, as you may know, colleges initially were partners in some of these efforts. I wrote to 66 of them, and they stopped the partnership that promoted gambling on their campuses. And so, there really is a kind of shamelessness here.

I want to ask for your support for the SAFE Bet Act, which would establish minimum national standards. Right now we have a patchwork of halfhearted regulation. The SAFE Bet Act would, in effect, also provide more public health benefits to try to provide some relief to people who are now addicted, and those minimum standards would be set by the Department of Justice. States would still have responsibility, but they would have to meet those minimum standards that would eliminate the kinds of promotions, ads, pitches, and deceptive techniques that right now are so rampant.

So, let me just ask you in the interest of time, would all of you support the SAFE Bet Act? Let me go down with Mr. Baker first.

Gov. Baker: I'm familiar with certain elements of it. I'm not familiar with all of it. I can tell you the elements I am familiar with, we do support. And the one thing I would add to some of the stuff you’ve talked about is when you have 39 states that have legalized sports betting, in every single state the data they collect is different, who they can share it with is different, and how they can—and who they can share it with is different. And so, you have a situation where it is really hard to get kind of a national sense about what’s going on. New Jersey probably has one of the best data collection programs in the country, but I think the data thing in particular should not be underestimated as an opportunity, and I love the fact that your legislation basically prohibits prop bets on college sports. It would save me a lot of running around.

Sen. Blumenthal: Mr. Bademosi?

Mr. Bademosi: I am not familiar with every detail of the SAFE Bet Act, but in the interest of protecting the health and wellness of the athletes and protecting athletes against universities and these entities that are in partnership with betting companies… I’ll support it.

Sen. Blumenthal: Mr. Whyte?

Mr. Whyte: With NCA, there is a lot of details in there that we really like, but because it starts by prohibiting sports betting, at least temporarily, the national council must remain neutral, because we are neutral on legalized gambling.

Mr. Rebuck: Senator, I really do not represent here anybody but myself, and my comments and my written testimony and my oral indicate that this is not a good bill to move forward because I believe, after 6.5 years of litigation, to the states to earn rights, constitutional rights to have sports wagering, that we are entitled to do the best we can to regulate and deal with the issues that are highlighted here—which I agree, many of them need to be continued to be dealt with in ways that we can improve upon. That being said, aspects of your bill talk about the need for safeguards, the need for guard rails, the need to work on responsible gaming aspects of reducing the risk of people falling into harm. Those are all shared by every jurisdiction today that engages in gambling. And as you well know, we have 10 right states now, seven of which are represented by members here, that have no sports wagering. No legal sports wagering.

Sen. Blumenthal: No legal sports betting. A lot of sports betting illegally. And I appreciate your support. I have run out of time.

Mr. Levant: Having helped your office and Congressman Tonko write the bill, my answer is yes, and I'm prepared to answer any questions about why the bill sets appropriate public health standards by the federal government. Thank you.

Sen. Blumenthal: Thank you.

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