For a third straight year, New York Representative Paul Tonko is seeking federal oversight of online gambling, particularly sportsbooks. On March 11, Tonko and Connecticut Senator Richard Blumenthal announced plans to introduce the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act.
The legislation, which bears the same name as Tonko’s last-year effort, carries over most provisions. It also calls for banning VIP programs and reload bonuses. Moreover, it requires states, operators, and the federal government to collaborate against offshore operators. It is Tonko’s third attempt to regulate online gambling at the federal level. In 2023, he proposed banning all advertising through media regulated by the Federal Communications Commission. Last year’s effort was more subtle, calling for banning ads during sporting events and seeking to ban gambling incentives like bonuses.
SAFE Bet would ban VIP programs, reload bonuses
This year’s proposal mirrors most of the 2024 SAFE Bet Act, maintaining provisions like banning ads during sporting events and gambling incentives such as bonuses, “no-sweat,” and “risk-free” bets or odds boosts.
The 2025 proposal introduces an additional ban on VIP programs, which reward frequent bettors with perks and incentives. One of the speakers at the press conference, Dr. Harry Levant, Director of Gambling Policy with the Public Health Advocacy Institute, likened these programs to drug dealers rewarding frequent customers:
This is the equivalent of a neighborhood drug dealer rewarding their best customers to make certain they never stop wanting or needing more action.
The SAFE Bet Act also aims to ban reload bonuses. These types of promotions award users with promo funds when they make a qualifying deposit.
While the planned legislation primarily targets sportsbooks, if passed, it would also impact hybrid operators like Fanatics Casino and Sportsbook, which share VIP programs and account balances. However, based on previous years, the effort faces an uphill battle, especially as a Democrat-led effort under a Republican administration.
Feds and operators to fight illegal offshore operators together
Another new provision in this year’s SAFE Bet Act is the requirement for states and sportsbooks to work together with the federal government to shut down illegal operators.
While the Department of Justice has remained relatively inactive in combating offshore sportsbooks like Bovada, state regulators have taken the lead. Since May 2024, Bovada has exited over a dozen states after regulators and attorneys general threatened legal action. The Michigan Gaming Control Board, which is among the most active regulators in protecting legal gambling operators, was the catalyst for the exits after sending a cease-and-desist letter to Bovada. In addition, it sent similar letters to Ace23 and Ace Per Head in October 2024.
Tonko focuses on gambling addiction, criticizes sportsbooks
During his press conference, Tonko criticized the sports betting industry, accusing it of preying on American consumers. He highlighted the upcoming NCAA basketball March Madness tournament, where, “Americans will be placing and most likely losing bets made on their favorite teams.” Tonko noted the industry’s 2024 revenue of $14 billion. But while the sector celebrates that number, he stated:
The reality is that $14 billion in revenue for the gambling industry is $14 billion extracted from the pockets of everyday Americans.
Blumenthal echoed Tonko’s concerns. He called sports betting “a science of exploitation,” saying that’s the abuse the SAFE Bet Act aims to stop. However, the lawmakers insist they’re not aiming to stop Americans from betting. Instead, the legislation is a result of the government’s failure to address the negative impacts of gambling-related harm adequately.
Tonko further compared gambling addiction to other severe substance addictions, such as heroin, alcohol, and tobacco. However, according to him, individuals with gambling problems face a higher risk of suicide than any other addiction. That is something a UK study found especially true for young adults with gambling problems. According to Tonko, existing problem gambling initiatives are inadequate. That’s why the federal government must regulate sports betting directly and protect the public from a “known addictive product.”
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