With the exponential growth of sports gambling, some federal lawmakers say gamblers are being victimized by the tactics that gaming companies use to lure and maintain customers. They say casual gamblers are becoming problem gamblers as a result, often winding up in debt or bankruptcy.
The SAFE Bet Act, proposed by Sen. Richard Blumenthal (D-CT) and Rep. Paul Tonko (D-NY), would try to change that by limiting advertising and the use of algorithms luring losing gamblers into deeper debt.
“This industry targets (gaming) losers,” says Blumenthal. “It does it methodically and scientifically, using algorithms to track who’s betting, what they’re betting on, whether they’re winning or losing, what kind of promotions, credit, bonuses to drive at them.”
The bill would also curtail the use of signup bonuses aimed at new and existing gamblers, such as offers of “free” or “bonus” bets.
Valerie Tibbets runs the helpline at the Connecticut Council on Problem Gambling. She says many problem gamblers have been enticed by such sweeteners:
“When somebody says, ‘If you give me $5 and all your pertinent demographic information… and everything else about you, I’ll give you $100 in free bets,’ it’s very, very predatory in my opinion.”
The SAFE Bet Act would also limit gambling commercials, which have become incessant, especially on sports TV.
“It would forbid ads during certain hours when children would be exposed to them, or during sporting events themselves,” says Blumenthal.
In a statement, the American Gaming Association rejects the SAFE Bet Act, citing gambling regulations at the state level:
“Six years into legal sports betting, introducing heavy-handed federal prohibitions is a slap in the face to state legislatures and gaming regulators who have dedicated countless time and resources to developing thoughtful frameworks unique to their jurisdictions, and have continued to iterate as their marketplaces evolve.”