The Senate Judiciary Committee held a federal sports betting hearing on Dec. 17 that touched on several issues and sparked commentary from around the industry.
While a heated discussion on transgender athletes threatened to obscure the matter at hand, topics including advertising, athlete harassment, problem gambling, the SAFE Bet Act and limiting bettors were all raised to varied levels of enthusiasm and response.
Before, during and after the hearing, the industry had plenty to say on the session.
Committee chair Durbin: Congress must step in
Committee Chair Sen. Dick Durbin posted on social media to highlight the dangers he believes legalized sports betting poses to U.S. residents.
“2.5 million adults may have a severe gambling problem, and legalized sports betting puts them at risk,” he wrote in a message posted on X minutes after the meeting had begun. “Gambling addiction has led to joblessness, bankruptcies, broken families, depression, and in the worst cases, suicide. Congress must step in.”
iDEA Growth: Bipartisan discussion shows state-led approach works
Whether or not Durbin’s assertion that federal regulatory oversight is needed is fair is the crux of the discussion around online gambling in the country right now.
In a statement distributed approximately two hours before the hearing took place, iGaming trade association iDEA Growth argued that the very fact that sports betting is a bipartisan issue “demonstrates that the current state-led approach is not only effective but widely embraced by the public.”
“Proposals by Congress to regulate sports betting represent unnecessary federal interference in a system that is working effectively,” added the group. “States have taken the lead in regulating sports betting, crafting solutions that address their individual economic, social and cultural considerations. These efforts have not only established robust consumer protections but have also supported economic growth by creating jobs and generating significant funding for critical state programs.
“Imposing federal mandates on sports betting would risk undermining this progress and introduce confusion and inefficiencies in a regulatory environment that is functioning well. Federal intervention threatens to stifle innovation, disrupt state economies and jeopardize the benefits that regulated sports betting has delivered to communities across the country.”
CFG: State-by-state approach failing, actually
It’s fair to say the Campaign For Fairer Gambling does not agree with iDEA Growth’s assessment of the state-by-state approach to regulating gambling.
“The testimony made it abundantly clear that the state-by-state regulatory approach is failing,” said CFG Founder Derek Webb in a statement. “Without federal oversight, gambling expansion will continue to harm the public while empowering illegal operators.”
The CFG added that hearing “underscored the serious financial and social harms stemming from the gambling sector’s unchecked growth and reinforced the urgent need for federal oversight to protect consumers, local economies and the integrity of the market.”
NCAA: Following recommendations a critical safeguard
NCAA President Charlie Baker, who has been outspoken in using evidence of harassment of college athletes as a reason for federal legislators to address sports betting, was one of the witnesses who spoke at length in Tuesday’s hearing.
The college sports association followed up his comments by summarizing that Baker’s recommendations include banning college player prop wagers, excluding bettors who harass athletes and enhancing data-sharing for integrity investigations.
“This is a critical step toward safeguarding college sports,” concluded the NCAA statement.
ROGA: Hearing underlined need for RG innovation
After the hearing had ended, the multi-operator Responsible Online Gaming Association (ROGA) sent out its own statement noting that the discussion “highlighted some of the opportunities that exist to innovate around responsible gambling.”
“As the online gaming industry continues to grow, ROGA recognizes the need to work collectively in efforts that prioritize and preserve the wellbeing of players,” said ROGA Executive Director Dr. Jennifer Shatley. “… We as an industry will continue to invest in research and technology to evolve responsible gaming programs, tools, and resources. Furthermore, we are working closely with our advisory committee, state regulators, and local entities to help the industry comply with all applicable laws and regulations and support operations according to industry standards.”
AGA: Why no industry witness?
The American Gaming Association (AGA), meanwhile, stressed that the absence of an witness from the operational side of the gambling industry left proceedings “bereft of testimony on how legal gaming protects consumers from the predatory illegal market and its leadership in promoting responsible gaming and safeguarding integrity.”
The AGA also argued that greater federal enforcement could significantly disrupt illegal operators and protect consumers.
