U.S. Federal Push for Sports Betting Regulation via the SAFE Bet Act

A new federal bill, the SAFE Bet Act, just dropped, and it’s aiming straight at how sportsbooks advertise, how players bet, and how far AI can go in shaping behaviour. If you’ve ever wondered who’s protecting bettors in a patchwork state system, this might be the start of a national answer.

The SAFE Bet Act: What It Is and Why It Matters Now

If you’re betting in the U.S., this might be the federal bill you didn’t see coming, and it could change how you place bets, see ads, or even access your favourite sportsbook app.

The SAFE Bet Act, introduced by Rep. Paul Tonko (D-NY), marks one of the first major federal attempts to regulate online sports betting since PASPA was overturned in 2018. This isn’t just another nudge to states, it’s a full-court press for national standards across affordability, advertising, and AI-powered features.

Why now? With the UKGC putting forth new restrictions in 2026, lawmakers say the industry has evolved faster than protections. With 38 states now offering legal betting and a sharp rise in gambling-related harm among young users, Congress is being urged to plug the national gaps that state-level oversight misses.

Key Provisions: Ads, Affordability, AI, and Betting Limits

At the heart of the bill is a player-first promise, but how that promise is delivered could disrupt how the industry works:

• Advertising Restrictions: Bans celebrity endorsements and mandates warnings on addiction. Think of it like tobacco-style packaging for sportsbooks.
• Affordability Checks: Operators would need to verify if you can afford your losses, not after the fact, but before you bet.
• AI in Check: AI-driven personalisation (especially nudging high-frequency bettors) would be limited or outright banned.
• Default Limits: Stake and time limits would be hardcoded unless you opt out manually, not buried in the settings.

From the player side, it sounds protective. From the operator side, it’s a compliance nightmare and potentially a profit squeeze.

Industry Response: Pushback, Lobbying, and Legal Risks

It didn’t take long for the backlash. Industry groups, including the American Gaming Association (AGA), argue the bill is overreach, especially since states already regulate.

They warn it could push users back to offshore platforms, create inconsistent enforcement, and penalise legal operators who’ve already built responsible gaming frameworks.

Behind the scenes? Lobbyists are working to water down key elements, especially affordability thresholds and AI language – which we’ve seen with a few thin-review sites. But the bill’s sponsor says those are the non-negotiables.

Resources

• https://www.blumenthal.senate.gov/newsroom/press/release/blumenthal-and-tonko-reintroduce-safe-bet-act-addressing-sports-gambling
• https://www.cnbc.com/2024/09/13/federal-bill-regulations-sports-betting-operators-safe-bet-act.html