Us Congress Is Considering Federal Regulation of Gambling

Increase in gambling problems in the USA

How The Guardian [Link to English] reports, the US Congress addressed the growing public health problem resulting from the widespread legalization of sports betting in a hearing in 2018. Since legalization in 38 states, the number of gambling addicts in the country, especially among young people, has increased significantly.

In addition to the increase in addictions, athletes report increased harassment. So have it npr [Link to English] The National Collegiate Athletic Association (NCAA) recently spoke out calling for regulations at the federal level. According to gambling addiction consultant and head of the gambling policy department at Northeastern University School of Law, Harry Levant, the reason for this is, among other things, increasingly complex networks of betting providers, sports clubs and media companies.

Gambling experts speak before US Congress

Due to these developments, experts at the hearing in the US Congress now called for stricter regulations. Former athletes such as Johnson Bademosi were also present at the hearing and emphasized the need for support programs for those affected. At the same time, Keith Whyte from the National Council on Problem Gambling criticized the fact that most states provide hardly any resources for the prevention and treatment of gambling addiction.

This new, AI-powered business model will inevitably lead to more gambling addiction and gambling-related harm.”–Harry Levant, gambling addiction consultant and director of gambling policy at the Public Health Advocacy Institute at Northeastern University School of Law, The Guardian

The gambling opponent backed up his statements with figures: for every USD that states earned through commercial gambling, only 0.0009 USD cents were reinvested in services for problem gambling. Although substance abuse is only seven times as prevalent in the United States as problem gambling, 338 times more funding is devoted to the problem. During the hearing, some senators signaled their support for a stronger role for the federal government in regulating the gambling market. Legislative proposals such as this have already been submitted SafeBet Act [Link to English] are also intended to counteract the increase in addictions. According to numerous American gambling critics, the measures taken so far are inadequate.

Gambling lobby fights back

While gambling researchers and athletes have called for stricter regulations, lobby groups such as the American Gaming Association (AGA) have vehemently resisted federal interference. Representatives of the gambling industry claimed that the number of problem gamblers has remained stable since legalization. However, outdated or selective data was used. In addition, several large providers refused to take part in the hearing. The two industry giants are also among the latter FanDuel and DraftKings.

The legalization of sports betting in the USA

Since 2018, US states have been allowed to decide for themselves whether and how to legalize sports betting. This has now happened in 38 states. This has helped the gaming industry to experience a rapid upswing - and the states to increase tax revenues.

Sports betting in the USA is only completely illegal in the following states:

Alabama
Alaska
California
Georgia
Hawaii
Idaho
Minnesota
Missouri
Oklahoma
South Carolina
Texas
Utah

While industry representatives emphasized that gambling regulation should remain at the federal level, analysts warned of the possible consequences of resistance to stricter regulations. If the industry denies its responsibility, it could face treatment similar to that of the tobacco industry, with extensive restrictions and stricter requirements.

US Congress is considering federal regulation of gambling