On December 17, the Senate Judiciary Committee convened a hearing to evaluate the effects of legalized sports betting in the U.S. The session gathered lawmakers, sports officials, and public health advocates to discuss issues surrounding the industry’s rapid growth and its social implications.
Industry Growth and Concerns
Chairman Dick Durbin opened the session by highlighting the exponential growth of the industry, noting that more than $30 billion was wagered on sports in the third quarter of 2024, up 30% year over year.
He also reported that the industry’s advertising spending could reach $1.3 billion this year, raising growing concerns about its impact on vulnerable populations.
The hearing examined the major concerns surrounding legalized sports betting: gambling addiction, athlete harassment, and sports integrity. One of the main talking points was the SAFE BET Act, which would give the federal government greater control over sports betting regulations.
The alarming rise in betting-related threats was noted, along with the need for federal oversight, athlete protection, and targeted addiction prevention strategies.
Risks to Athletes
Former Massachusetts Governor and current NCAA President Charlie Baker presented a report on the risks student-athletes face in the current sports betting climate.
Baker reported that 10-15% of Division I athletes have been harassed, particularly after losing games or perceived mistakes. He believes that betting on specific player performances is a major catalyst for this violence.
Baker also stated that such betting disproportionately targets young athletes and should be banned nationwide to protect their mental health and safety.
The growing monetization of college sports was also noted, as were the concerns surrounding unregulated black market betting sites that operate outside of established government frameworks.
Baker also called for federal action to crack down on unregulated operators, which he said not only undermine the integrity of the game but also pose significant risks to consumers. Among other initiatives, he also discussed partnerships between the NCAA and research institutions like Rutgers University to develop evidence-based strategies to reduce gambling-related harm.
Former NFL player Johnson Bademosi spoke about the toll sports betting is taking on athletes’ mental health and safety.
He described the growing harassment that players are subjected to, especially through social media, where disgruntled betting customers can directly attack athletes. Bademosi highlighted the psychological impact, saying that this harassment can negatively impact athletes’ performance and overall well-being.
To address these issues, Bademosi suggested bans on negative bets, which allow fans to bet on players’ failures, and protecting athletes’ biometric data to ensure privacy and protection from misuse.
Public Health Crisis of Gambling Addiction
The discussion then turned to the growing problem of problem gambling in the United States. Keith White, executive director of the National Council on Problem Gambling (NCPG), stressed the urgent need for action. According to him, 9 million Americans suffer from gambling-related problems. The rapid expansion of sports betting, combined with aggressive advertising and technological innovation, has led to a public health crisis.
White advocated for the GRID Act, which would allocate resources to prevention, treatment, and education programs focused on problem gambling. He also reiterated his support for the SAFE Bet Act.
He emphasized the importance of viewing problem gambling through a public health lens and called for a comprehensive approach to mitigate its long-term societal impact.
White, who praised New Jersey’s betting model last year, also expressed concerns about the normalization of gambling among younger audiences, especially through targeted marketing campaigns.
Regulatory Challenges and Black Market Risks
Former New Jersey Division of Gaming Enforcement Director David Rebuck discussed the successes and challenges of regulating sports betting at the state level.
As the second state to legalize sports betting since the repeal of PASPA, New Jersey has become a model for regulation. Rebuck emphasized the importance of robust consumer protections and close oversight of operators to ensure fair play and transparency.
Rebuck also cautioned against overreaching the SAFE BET Act, arguing that states themselves would be better placed to regulate betting based on their needs and circumstances.
He emphasized that federal oversight should complement, not replace, existing state structures that have proven effective in addressing issues such as fair play and consumer safety.
Technology and AI’s Role
The hearing discussed the role of technology and artificial intelligence (AI) in fueling the sports betting boom. It highlighted how AI tools are being used to create targeted live betting opportunities, effectively turning live sporting events into “continuous slot machines.”
Public health advocate Dr. Harry Levant shared his personal struggle with gambling addiction, warning that technological advances are exacerbating compulsive gambling behavior by encouraging constant participation.
Levant highlighted DraftKings’ acquisition of AI-powered betting model company Simplebet as an example of how the industry is using technology to maximize profits.
He urged lawmakers to view gambling regulation as a public health issue and offered to partner with policymakers on solutions like the SAFE BET Act.
Proposed Solutions
The hearing identified key actions to address the challenges of legalized sports betting:
– Banning Prop Bets: Baker advocated for eliminating prop bets in college sports to protect student-athletes from harassment and undue pressure. This is something already being considered in a handful of states, with some already taking action.
– Federal Addiction Prevention Efforts: Whyte urged the passage of the GRID Act to provide funding for gambling addiction prevention and treatment programs.
– Player Protections: Bademosi recommended prohibiting negative bets and safeguarding biometric data to ensure athletes’ safety and privacy.
– Combating Black Market Betting: Baker emphasised the need for stronger federal efforts to eliminate illegal gambling platforms.
– Maintaining State-Led Regulation: Rebuck recommended preserving state-led regulatory frameworks, which have proven effective in markets like New Jersey.
The hearing highlighted the dual nature of legalized sports betting. While the industry has generated significant economic benefits, its rapid growth has also led to serious problems, including gambling addiction, athlete harassment, and concerns about the integrity of the game.
Chairman Durbin and other Senators emphasized the need for comprehensive federal oversight to complement state regulations, protect athletes, and address addiction as a public health crisis.
The hearing demonstrated that stakeholders – including legislators, sports organizations, and public health advocates – need to collaborate to implement solutions that balance economic opportunity with social responsibility.
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