Senators kicked off a conversation about legalized sports betting on Tuesday that highlighted serious concerns but also more localized matters and issues that have little connection to wagering, creating uncertainty about what, if anything, federal lawmakers may do.
The two-hour hearing held by the U.S. Senate Judiciary Committee on Tuesday — titled “America’s High-Stakes Bet on Legalized Sports Gambling” — featured witnesses from the worlds of public health, gaming regulation, and college and professional sports.
“It is critical that Congress look into sports betting's impact on America and determine how the industry should be regulated going forward,” said Dick Durbin, a Democratic senator from Illinois and chairman of the committee.
Time to get in the game?
Federal lawmakers are indeed thinking about getting off the sidelines and into the business of regulating legal sports betting, which is chiefly the domain of the states at this point. However, as was made clear by the Senate committee hearing on Tuesday, they are not all rowing in the same direction.
Some committee members suggested there’s a role for the federal government atop the current state-by-state regulation of retail and online sports betting in the U.S. Some barely spoke about sports betting and focused on transgender college athletes.
That lack of consensus could carry over into the next Congress, which will begin early next year and serve alongside a different president. If that’s the case, any attempt to impose more federal control over legal sports betting could get bogged down in already messy D.C. politics.
Durbin said he hoped to “at least open the discussion,” but where the conversation goes from here could be anyone’s guess.
Where it went at times on Tuesday was into deep concerns some witnesses and senators have about legalized sports betting more than six years after the U.S. Supreme Court struck down a federal law and paved the way for regulated wagering to spread across the country.
Some witnesses asked federal lawmakers to intervene, such as by passing already proposed legislation like the GRIT and SAFE Bet Acts.
"We are in the midst of a sports betting boom that is one of the most severe public health problems today," said Democratic Sen. Richard Blumenthal, a backer of those two bills.
Moving to witness testimony now. Sworn in. First up is NCAA President (and former MA Gov.) Charlie Baker. pic.twitter.com/wf67kBwNs3
— Geoff Zochodne (@GeoffZochodne) December 17, 2024
NCAA President Charlie Baker spoke of abuse and harassment faced by student-athletes, which has prompted the organization to lobby states to ban college player prop wagering.
Over the past year, Ohio, Louisiana, Maryland, and Vermont have done so, leaving 19 states with some form of college player prop betting. Ohio and West Virginia have also recently enshrined anti-harassment measures in law. Even so, Baker said too many states lack “adequate” protections for athletes.
“Should this committee develop legislation regulating sports betting, we strongly encourage banning prop bets on college sports,” Baker told the committee. “We also encourage federal authorities to do more to crack down on black market betting sites. We believe these sites are where many of the underage students who report betting are placing their bets.”
Baker, however, found himself on the receiving end of questions from Republican Sens. John Kennedy and Josh Hawley about transgender college athletes that had nothing to do with sports betting.
“We got problems in collegiate sports with the transfer portal, and the NIL, and now gambling, and … you allowing biological males to compete against biological females,” Sen. Kennedy said to Baker at one point.
Sen. Thom Tillis is trying to get the Lumbee Tribe of NC federal recognition and has a prop alleging the Eastern Band of Cherokee Indians (which has legal sports betting at its casinos) is part of a network working against the Lumbee. pic.twitter.com/Lbmyh6pIY9
— Geoff Zochodne (@GeoffZochodne) December 17, 2024
(Baker said later in the hearing that he is aware of “less than 10” transgender players among the approximately 510,000 student-athletes competing in NCAA events. Asked by Durbin, Baker also said the organization is governed by state law, and that if 25 of 50 states say transgender children can play in sports according to their gender identity, they are bound by that standard.)
Protecting college athletes was just one of many concerns raised before the committee on Tuesday. Former NFL player and NFL Players Association representative Johnson Bademosi said the rise of legal sports betting has increased fan engagement but created more mental health challenges and harassment.
“Social media has enabled athletes to take control of their brands and market themselves in ways not possible for previous generations,” Bademosi said. “However, it has also opened an extremely accessible avenue for threats and harassment directed toward athletes and their families alike.”
Bademosi said Congress has a role to play in passing policies to protect the integrity of games and athletes, noting player unions have asked states to ban “negative bets,” the purchase of biometric data for gambling purposes, and to ensure due process in integrity investigations.
“Each of these recommendations is critically important,” he said.
Tech savvy
Keith Whyte, the executive director of the National Council on Problem Gambling, told the committee that addiction has grown over the past six years. This, he said, was especially true among young males, although data this year suggests the increase may have leveled off.
Whyte said it is “essential” for Congress to pass the Gambling Addiction Recovery, Investment, and Treatment (GRIT) Act, which would dedicate federal funds for problem gambling treatment and research.
“Technology provides opportunities to enhance responsible gambling features, including setting personalized limits and self-exclusion programs, but it also further increases risk factors for gambling addiction,” Whyte said.
Another voice pushing for federal oversight was Harry Levant, director of gambling policy for the Public Health Advocacy Institute at the Northeastern University School of Law, who hoped Tuesday’s hearing would kickstart a public debate that will end with Congress passing sports betting-related legislation.
Of particular concern to Levant was the use of artificial intelligence and data to craft in-game microbetting markets that allow for more and faster wagering, which he said raised a public health issue.
“Sports have become the equivalent of a non-stop slot machine,” Levant told the committee.
Don't tread on my SGP
Yet one voice advocating for the federal government to steer clear of intervention in U.S. sports betting was former New Jersey Division of Gaming Enforcement director David Rebuck, who also appeared before the judiciary committee on Tuesday.
Rebuck called himself a "proud advocate" for state-led regulation of sports betting, and noted states have overturned constitutional bans on gambling because residents voted to do so. He also pointed out that illegal gambling, including illegal sports betting, remains accessible in all states.
“I do not underestimate the challenges that come with regulating sports wagering, such as responsible gambling and ensuring compliance with regulatory standards,” Rebuck told the senators. “However, states are already addressing these challenges head-on, with many adopting best practices like mandatory self-exclusion, partnership with addiction treatment providers, [and research] partnerships with universities.”
Whether the next Congress opts to dive deeper into sports betting regulation remains to be seen.
Today, the Senate Judiciary Committee held a hearing titled, "America’s High-Stakes Bet on Legalized Sports Gambling," notably excluding an industry witness to represent the work the legal gaming industry is doing to protect consumers. pic.twitter.com/9bq1NsbRBi
— American Gaming Association (@AmericanGaming) December 17, 2024
Nevertheless, the transgender-related questions were just one hint that not all lawmakers see a role for the federal government in regulating sports betting, or that they at least see that role as being minimal.
“About 90% of my personal philosophy is don't hurt someone unless they're trying to hurt you, don't take other people's stuff, and leave me alone,” Sen. Kennedy said at one point. “So I'm pretty libertarian when it comes to gambling. Within reason, if someone wants to gamble, they can.”
Moreover, California Sen. Alex Padilla highlighted a more local concern, which is his state’s decision to grant Native American tribes casino gambling rights.
“The voters of California granted tribes exclusivity in gaming operations nearly a quarter century ago, and this commitment must be maintained in any attempts to legalize and expand sports betting,” Padilla said.
“Now, in order to maintain a model that respects tribal sovereignty and their exclusive rights to the state's gambling industry, California would require a uniquely tailored approach to any legislation that integrates sports betting.”
