Blumenthal and Tonko Launch Truth and Integrity Campaign for Federal Standards on Sports Betting and Prediction Markets

Democratic lawmakers are pressing for federal oversight of sports betting and prediction markets as those sectors expand. Sen. Richard Blumenthal of Connecticut and Rep. Paul Tonko of New York joined the Public Health Advocacy Institute and Families and Friends of Gamblers in Washington, DC, on September 23 to launch “Truth and Integrity: The Movement for Gambling Reform.” The effort targets changes to both federal and state regulations.

The lawmakers have introduced bills that would impose new requirements on operators and clarify jurisdictional lines. These proposals come as prediction markets increasingly overlap with sports-related contracts.

Proposed Federal Standards for Sports Betting and Prediction Markets

Blumenthal and Tonko have introduced the SAFE Bet Act. The legislation would require states that permit sports betting to adopt federal standards covering advertising, affordability checks, and artificial intelligence use. Operators would face restrictions on certain advertising practices and must conduct affordability checks before accepting larger wagers. Additional provisions address deposits, self-exclusion programs, and technology to track customers for personalized promotions.

Blumenthal also introduced the Prediction Markets Security and Integrity Act in March alongside Sen. Andy Kim. That measure would create federal consumer safeguards while returning regulatory authority over prediction markets to the states. It targets underage use, fraud, market manipulation, and the conditions under which bets are settled.

At the September 23 event, Blumenthal argued that gambling companies, including sports betting operators and prediction market platforms, are benefiting from vulnerable customers. Tonko said the goal is to take a possibly addictive product for consumers and make it considerably safer. Dr. Harry Levant of the Public Health Advocacy Institute described gambling addiction as a public health concern. Levant said, “This movement is just the beginning. It is a cry from the nation that we’ve had enough.”

Industry Resistance and Regulatory Tension

The American Gaming Association (AGA) opposes greater federal involvement. The AGA maintains that sports betting is already regulated by state and tribal authorities and resists steps that would weaken that system. The group notes that prediction markets offering sports-related contracts operate outside state regulatory frameworks and should face the same oversight applied to traditional sports betting.

Prediction market operators counter that their products fall under federal commodities regulation rather than state gambling laws. This clash, as reported by GamblingNews, underscores the tension between calls for uniform federal protections and the existing state-by-state approach. How Congress responds will shape compliance demands and competitive balance across the sector.

Reporting: GamblingNews

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