SAFE Bet Act Proposes Federal Rules for Sports Betting, Mandating Affordability Checks and Ad Limits

The SAFE Bet Act aims to create a national playbook for legal sports betting, moving away from the current state-by-state patchwork. Essentially, it sets up a system where states must apply to the U.S. Attorney General (AG) for permission to run sports wagering programs (Sec. 102). If approved, these programs need to follow a set of minimum federal standards designed to protect bettors and the integrity of the games themselves. Think of it as setting a baseline for how sports betting operates legally across the country.

Betting Boundaries: What States and Operators Must Do

Under this bill, states wanting in on sports betting need to establish a dedicated regulatory body and submit a detailed plan to the AG (Sec. 103(a)). Approval hinges on meeting several requirements. Online betting must use location verification to ensure bets are placed within the approved state or tribal lands under a compact (Sec. 103(b)(1)). Forget betting on that college game's coin toss – proposition bets on amateur or college sports are out (Sec. 103(b)(2)). Until the end of 2025, operators have to use official data licensed directly from sports organizations to settle bets, which could impact where odds data comes from (Sec. 103(b)(5)). Operators also face strict licensing, background checks for employees, detailed recordkeeping for at least five years, and requirements to report suspicious betting activity (Sec. 103(b)(8)-(13)).

Protecting Your Play: New Rules for Bettors

The act puts a significant focus on consumer protection. Key measures include a national self-exclusion list, allowing individuals to easily block themselves from betting platforms across participating states (Sec. 103(b)(6)(A), Sec. 202). Operators can't force you into publicity to withdraw winnings or slap on unreasonable withdrawal limits or dormancy fees (Sec. 103(b)(6)(B)). Transparency is mandated, requiring clear disclosure of bonus terms and actual odds (Sec. 103(b)(6)(C)). Critically, the bill introduces affordability checks: operators can't accept credit card deposits, are limited to five deposits per customer in 24 hours, and must perform an affordability check (based on typical bank loan standards) if someone bets over $1,000 in 24 hours or $10,000 in 30 days (Sec. 103(b)(6)(F)). Furthermore, operators are barred from using Artificial Intelligence (AI) to track individual betting patterns for targeted marketing or to create certain gambling products like microbets (Sec. 103(b)(6)(G)).

Ads, Addiction, and the Bigger Picture

Advertising faces new guardrails. Ads must identify the operator, include resources for gambling addiction help, and cannot target minors or those on self-exclusion lists (Sec. 103(b)(7)). Restrictions apply during certain hours and live sporting events, and ads can't feature odds boosts or instructions on how to bet. Beyond individual protections, the bill mandates operators contribute funds to gambling disorder treatment and education (Sec. 103(b)(6)(D)). It also directs federal health agencies to step up efforts: requiring annual surveys on online sports betting's impact, a Surgeon General's report on public health challenges, and enhanced CDC surveillance of gambling addiction (Sec. 201, 203, 204). Finally, the bill clarifies that for online bets involving tribal lands, the wager is considered to occur where the server is located, provided a valid tribal-state compact exists (Sec. 301).