Federal Oversight in Sports Betting: New Legislative Proposals

Legislative Initiatives in Sports Betting

• The legislator behind the SAFE Bet Act returns with new initiatives
• Congressman Baumgartner emphasizes the need to tackle gambling at the college level
• The NCAA has also raised concerns about proposition bets

Federal oversight of sports betting is currently somewhat lacking. After the repeal of PASPA, states have taken various approaches to regulate their gambling industries. Some have been aggressive, others have adopted protective measures, and some have opted for a more open approach.

Why Federal Oversight Might Be Essential for Safer Gambling Practices in the US

Beyond the SAFE Bet Act, which aims to set a federal benchmark for player safety, there hasn’t been much movement – until now.

As March Madness kicks off today, a new legislative proposal, aptly named Providing Responsible Oversight and Transparency and Ensuring Collegiate Trust for Student Athletes ACT, or the PROTECT Act, is being introduced. This draft law aims to prohibit college proposition wagers at the federal level.

Some states have already banned college prop bets entirely or for specific games. The PROTECT Act is the brainchild of Congressman Michael Baumgartner, who has passionately taken up the cause, highlighting the rapid expansion of sports gambling on college campuses. He argues that this trend threatens the integrity of sports and the well-being of young athletes.

In a statement accompanying the draft law’s introduction, Baumgartner elaborated on why these practices are problematic:

‘Student athletes dedicate themselves to their sport and education, and it’s essential that we protect their integrity both on and off the field. This bill doesn’t ban betting on college sports games, but it targets wagers on student athletes’ individual performances. We are witnessing a troubling rise in harassment of college athletes on campuses, as well as an alarming increase in cases of student athletes being coerced into throwing games for financial gain.’

This legislation is Baumgartner’s own initiative. He is also co-sponsoring another significant proposal to make sports betting more responsible in the United States, albeit with a more centralized approach due to federal regulations – The SAFE Bet Act, co-sponsored with Rep. Paul Tonko from New York and Sen. Richard Blumenthal from Connecticut.

Baumgartner’s Commitment to Driving Change in Gambling Regulations

Nevertheless, both the SAFE Bet Act and the PROTECT Act have so far been proposed by Democrats, and in the current political landscape, gaining Republican support could be challenging.

However, it is clear that numerous lawmakers and even the NCAA itself are concerned about the negative effects of college prop bets, lending weight to legislative efforts like the SAFE Bet Act and The PROTECT Act.

With Robinhood recently launching its standalone prediction market, the interest in college betting is on the rise. The American Gaming Association estimates that $3.1 billion will be legally wagered on this year’s event alone.