Congress Discussing Concerns Over Sports Betting

Since sports betting was legalized across the USA in the spring of 2018, all licensing and regulatory action required was conducted by state governments. However, after a recent rash of betting scandals in pro and college sports, members of Congress are discussing whether it would be prudent to have some Federal oversight in sports betting regulation.

Some Senators believe that the proliferation of bets, especially prop bets and live betting, is creating an environment in which scandal has the potential to blossom.

“Sports betting definitely creates a credibility crisis for the leagues when you can place all kinds of bets, not just on the outcome of the game,” Republican Senator Ron Johnson of Wisconsin told The Hill.

It’s a dilemma that lawmakers on both sides of the aisle find to be disconcerting. Democratic Senator Richard Blumenthal of Connecticut believes that the potential for corruption should be of concern to all government officials.

“There are two consequences from the exploding level of activity we’ve seen: corruption and addiction,” Blumenthal said. “The prevalence of corruption shows the guardrails are not working.”

Commissioners of the major pro sports leagues assess that the fact these betting scandals are being exposed and the perpetrators being meted out punishment shows that the system is working. Members of Congress don’t share that vision.

“That’s like saying we know about the problem and therefore it does not exist,” Blumenthal said. “I don’t buy it.”

Here are some potential federal regulations for sports betting

Federal regulation of sports betting could prove problematic, considering that states have traditionally been given control over all regulatory measures in the industry. Still, there are areas that Congress feels it could act on to help improve the regulation of sports betting.

“Congress should be involved in putting some limits on sports betting, no question,” Blumenthal said.

One specific area is with prop bets and microbetting. These are wagers that are placed on actions in the game that generally don’t impact the overall outcome of the game. This could include the result of the next pitch in a baseball game or the next play in a football game. It’s also these types of wagers that have been the basis for some of the recent betting scandals in sports.

“The pro leagues need to do a lot more to control and stop gambling,” said New Jersey Senator Cory Booker, a Democrat. “We are entering an era where [prop bets] really invite more corruption. It’s a new era that necessitates more controls.

“There’s a role for both the federal government and for the leagues … to make sure we protect these incredible treasures within our culture.”

This is an issue which seems to have bipartisan support.

“There are definitely dark sides to what gambling does to certain communities,” Booker said. “It’s exploitative.”

Added Johnson: “There’s a reason they call it a vice. We’ve let it get out of control.”

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