Rep. Tonko’s Planned SAFE Bet Act Could Regulate Sports Betting Ads and AI Usage in New York
US Representative Paul Tonko, representing New York’s 20th District, has announced plans to introduce the SAFE Bet Act later this year. The proposed legislation aims to tackle several critical issues in the legal sports betting industry, including deceptive marketing tactics, the use of artificial intelligence (AI), and the implementation of fiscal safeguards.
Legislative Framework and Objectives
The SAFE Bet Act aims to address the problematic marketing practices often employed by gambling operators. Tonko has a history of targeting such practices, having sponsored the Betting On Our Future Act last year.
Similar to that effort, the SAFE Bet Act seeks to prohibit gambling operators from using specific enticing language in their communications, such as “bonus,” “no sweat,” “bonus bets,” or “odds boosts.”
Additionally, the bill would ban betting advertisements during live sporting events. Tonko stressed that the goal is not to outlaw gambling but to create a more controlled environment: “I think this unrestricted, Wild West environment is not helpful to anybody, and we think it’s necessary to have some restrictions so there are not these targeted audiences that are preyed upon.”
Tonko discussed the bill during an event in Saratoga Springs. He emphasized the importance of crafting the legislation carefully, stating, “We put a framework out, now we are wordsmithing it. We are networking with folks to make certain we get exactly as we intended.”
Impact on Sportsbook Users
The SAFE Bet Act also includes provisions aimed at protecting sports gamblers. One such measure would limit the number of deposits a user can make to a single account to five within a 24-hour period.
The bill would introduce “affordability checks” for large bets, although the specific threshold for these checks has yet to be determined.
As New York lawmakers consider expanding gambling, including legalizing online casinos and implementing additional taxes, Tonko urges a comprehensive approach that takes into account potential negative impacts.
Tonko’s proposal also addresses the role of AI in the sports betting industry. The bill would restrict the use of AI for tracking player habits or offering personalized promotions. Additionally, it would likely ban the use of AI in creating gambling products, such as determining live bet pricing.
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