Democratic Lawmakers Launch Truth and Integrity Campaign for Federal Standards on Sports Betting and Prediction Markets

Two Democratic lawmakers have launched a campaign for stricter federal rules on sports betting and prediction markets. 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 unveil “Truth and Integrity: The Movement for Gambling Reform.” As reported by GamblingNews, the effort seeks changes to both federal and state gambling regulations.

Blumenthal and Tonko have introduced the SAFE Bet Act, which would require states that offer sports betting to meet federal standards on advertising, affordability, and artificial intelligence use. Operators would face restrictions on certain advertising practices and must conduct affordability checks before accepting larger wagers. The legislation also covers deposits, self-exclusion, and the use of technology to track customers for personalized promotions.

In March, Blumenthal introduced the Prediction Markets Security and Integrity Act with Sen. Andy Kim. The bill would establish federal consumer safeguards while returning regulatory authority over prediction markets to individual states. It addresses underage use, fraud, market manipulation, and conditions for bet settlement.

At the event, Blumenthal argued that gambling companies benefit from vulnerable customers. Tonko said the goal is to make a possibly addictive product considerably safer. Dr. Harry Levant of the Public Health Advocacy Institute called gambling addiction a public health concern. “This movement is just the beginning. It is a cry from the nation that we’ve had enough,” Levant said.

Industry Opposition to Federal Oversight

The American Gaming Association opposes greater federal involvement. The AGA argues that sports betting is already regulated by state and tribal authorities and that new federal measures would weaken this system. The group states that prediction markets offering sports-related contracts operate outside state regulatory frameworks and should face the same oversight as traditional sports betting.

Prediction market operators maintain that they fall under federal commodities regulation rather than state gambling laws. This disagreement becomes more pointed as prediction markets expand into sports-related contracts.

The campaign reveals clear tension between public health advocates seeking uniform federal protections and an industry built on state-by-state licensing. Operators and investors now face uncertainty over whether these bills advance or stall in Congress, with direct implications for compliance frameworks and market expansion strategies.

Reporting: GamblingNews

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