US Senator Richard Blumenthal from Connecticut and Congressman Paul Tonko from New York are urging the federal government to enhance consumer protection as sports betting and prediction markets resembling gambling expand swiftly.
Addressing the need for reform in the gambling industry, Blumenthal and Tonko partnered with the Public Health Advocacy Institute (PHAI) in Washington, DC, to initiate a movement for revamping the federal and state oversight of gambling activities. Collaborating with Families and Friends of Gamblers (FFOG), a national non-profit aiding those affected by gambling addiction, the PHAI launched the “Truth and Integrity: The Movement for Gambling Reform” campaign.
Dr. Harry Levant leads the gambling policy at PHAI. In 2015, after confessing to stealing nearly $2 million from his clients to support his gambling addiction, Levant relinquished his law license and dedicated his life to aiding gambling addicts.
Levant emphasizes that the movement’s significance is greater now than ever, citing evidence of a mental health and public health crisis tied to gambling addiction.
“There is overwhelming evidence that we are in the midst of a mental health and public health crisis related to gambling addiction,” Levant stated. “This movement is just the beginning. It is a cry from the nation that we’ve had enough.”
Levant expresses confidence that bipartisan backing can be garnered in both Congressional chambers to support gambling regulatory reform.
First Pieces of Legislation
Blumenthal and Tonko back the initiative by PHAI and Levant by advocating for the SAFE Bet Act and the newly introduced Prediction Markets Security & Integrity Act.
The Supporting Affordability & Fairness With Every Bet Act aims to enforce federal regulations on state-licensed sportsbooks, including imposing deposit and betting limits and undertaking regular “affordability checks” on customers. The Prediction Markets Security & Integrity Act seeks to establish federally mandated consumer protections for online prediction markets and transferring the oversight of these markets from the federal Commodity Futures Trading Commission (CFTC) to individual states.
“We know that the gambling industry, which includes not only DraftKings and FanDuel but also the prediction markets, is exploiting problem gambling. They are relentlessly and tirelessly taking advantage of vulnerability to make more money,” remarked Blumenthal during the PHAI launch event.
Tonko assures full support from himself and Levant’s PHAI mission.
“Together, we’re going to make this happen. We have to,” Tonko asserted.
“It is important for us to take a known addictive product and make that product a safer product,” Tonko expressed. “I don’t think that’s too much to ask.”
Industry Opposition
The legalized gambling sector opposes federal intervention in regulatory matters. The American Gaming Association contends that state regulators are best equipped to oversee gambling activities, emphasizing that states currently have comprehensive protections for consumers and programs addressing problem gambling.
On the other hand, the prediction market industry pushes back against Blumenthal’s Prediction Markets Security & Integrity Act, maintaining that prediction markets are not gambling products but financial investment mechanisms.