Why are gaming stakeholders opposed to a federal regulation for sports betting?

On Thursday, current and former stakeholders in the sports betting industry met to discuss the opposition to federal regulation. Their stance has not waivered because they are against the regulatory expansion being forced upon them. Possibly the most expansive legislation for sports betting since the Supreme Court’s ruling in 2018. 

David Rebuck, the former long-time director of the New Jersey Division of Gaming Enforcement, spoke at the webinar on Thursday. Mr. Rebuck denounced this proposed legislation and the federal government’s role in gambling as a whole. 

He noted that this new legislation would replace decades of experience in states like Nevada, Not to mention the growing number of sports bettors that join the market each year. Rebuck believes it’s arrogant for the federal government to say they have more knowledge about sports betting. In reality, it’s the state operators who see the change from month to month and have a greater understanding of what federal regulation should look like.

The federal bill for sports betting regulation has received major backlash

Earlier this summer, the Supporting Affordability and Fairness with Every Bet Act (SAFE) was introduced to the House and Senate. In the proposed legislation, sportsbooks would be restricted from advertising, there would be limited deposits, regulation by artificial intelligence (AI), and create “unprecedented” federal oversight. 

Former NJ Gaming Director David Rebuck is one of the many who are opposed to nearly every level of the proposed federal bill. If the bill were to pass as it currently stands, sportsbooks would have to seek approval from the federal Justice Department. Replacing how sportsbooks used to deal with state-level regulators. 

This proposed federal legislation would completely erase the years that sportsbooks and state-level regulators have put in. Individual state governments have created laws that are tailored to their betting jurisdiction.

What restrictions would sportsbooks have in the proposed federal legislation?

Under the proposed federal legislation for sports betting, sportsbooks would see several changes. The first would be that sportsbooks can not accept more than five deposits from an individual customer in 24 hours. Additionally, bettors would be prohibited from using a credit card to fund their sportsbook account. 

Another major change would be the restrictions against sports betting advertisements. The rules under the proposed legislation say sportsbooks would not be able to run ads between 8:00 a.m. and 10:00 p.m. That includes during live sports events.