"The stakes are too high," says New York Senior Senator Chuck Schumer who is proposing the establishment of a federal framework for legalized sports betting.
After the Supreme Court decision in Murphy V. NCAA, which freed states to legalize sports betting, the Senator's Office says many states are quickly implementing different laws which is increasing the potential for confusion and uncertainty.
Senator Schumer says the federal framework is desperately needed to protect consumers and the integrity of sports.
The proposal is centered around three core principals: protecting young people and those suffering from gambling addiction, protecting the integrity of the game, and protecting consumers and individuals placing bets.
According to the Senator's office, the key components of the proposal are as follows:
Protecting young people and those suffering from gambling addiction: Senator Schumer believes minors should not be encouraged to participate in sports gambling, and adequate resources must be provided to support those struggling with gambling addiction. To this end, Senator Schumer’s federal framework proposes to:
Prohibit anyone under the age of 21 from betting.
Prohibit advertising targeted at young people and otherwise require responsible advertising.
Require that information be provided by any entity taking bets about the dangers of addiction and available resources to help encourage responsible betting.
Protecting the integrity of the game. In order to protect the integrity of professional and collegiate sports a strong framework must be provided for coordination and enforcement. Therefore, Senator Schumer proposes the following:
Require that any entity accepting bets share appropriate information in a timely fashion with the league or governing body of the sport in question as well as relevant state, federal, and tribal law enforcement or other appropriate oversight bodies. This data should be scrubbed so that personal and sensitive information has been removed but must be sufficiently detailed so as to provide the league or governing body with a basis by which to identify problematic trends.
Require that all parties involved, including sports leagues, entities accepting bets, and state and tribal law oversight agencies where appropriate coordinate enforcement actions and notify each other of suspicious or abnormal activity or any other conduct that corrupts a betting outcome of a sporting event.
All leagues and sports should have effective tools to protect their own game and that includes strong limitations and prohibitions on any athlete, coach, official, team, or league representative from taking a financial stake in any wager.
Protecting consumers and individuals placing bets. As sports betting becomes legal it is important that those choosing to place bets are able to avail themselves of the same protections afforded to other consumers. To that end, Senator Schumer would:
Require that official league data be used to determine betting outcomes.
Require agreement between the league or appropriate governing body and those entities taking bets on what types of bets will be permitted.
Provide appropriate consumer protections and requirements that deter unfair or deceptive practices, and provide safeguards against financial crimes and predatory tactics. Furthermore, consumers should have a mechanism for appropriate redress should they be unfairly harmed by some betting activity or fraudulent scheme.
Provide a pathway for legal online and mobile betting so that sports betting can come out of the shadows and we can further remove the competitive advantage of illegitimate online sports books.