In Wake Of Supreme Court Decision Freeing States To Legalize Sports Betting, Schumer Proposes Desperately-Needed Federal Framework To Protect Consumers And Integrity Of Sports As State Legislatures Begin Lawmaking Efforts

August 29, 2018

In Light Of The Supreme Court’s Recent Decision In Murphy V. NCAA, Which Freed States To Legalize Sports Betting, Many State Governments Are Quickly Implementing Different Laws To Set Up Gambling In Their Jurisdictions, Increasing The Potential For Confusion And Uncertainty For The Leagues And Average Consumers Alike

 

New Schumer Proposal Seeks To Establish A Federal Framework With A Number Of Critical Principles Designed To Protect Young People And Those Suffering From Gambling Addiction, Protect The Integrity Of The Game, And Protect Consumers And Individuals Placing Bets

Schumer: The Stakes Are Too High -- Legal Sports Betting Laws Must Be Crafted And Executed In A Careful And Thoughtful Way, And It’s Incumbent Upon The Federal Government To Take A Leadership Role

 

Washington, D.C. – In the wake of the Supreme Court’s May 2018 decision in Murphy v. NCAA, which freed states to legalize sports betting, U.S. Senate Democratic Leader Chuck Schumer (D-NY) today released a new proposal to establish a desperately-needed federal framework to protect consumers and the integrity of sports. Senator Schumer’s proposal, Protecting the Games We Love After Murphy v. NCAA: A Federal Framework for Consumer Protection and Sports Integrity, is centered around three core principles: protecting young people and those suffering from gambling addiction, protecting the integrity of the game, and protecting consumers and individuals placing bets.

Specifically, the federal framework, which Senator Schumer hopes will be taken under consideration as state legislatures across the country begin efforts to develop legislation in the coming weeks and months, includes proposals to prohibit anyone under the age of 21 from betting, 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, and much more.

“As a New York sports fan – especially my Yankees and Giants – and a senator, my priority in the wake of the Murphy v. NCAA decision is making sure the integrity of the games we love is preserved, that young people and those suffering from gambling addiction are not taken advantage of, and that consumers that choose to engage in sports betting are appropriately protected,” said Senator Schumer. “With the Supreme Court’s ruling, it’s incumbent on the federal government to take a leadership role and provide the necessary guidance to prevent uncertainty and confusion for the leagues, state governments, consumers and fans alike.”

Senator Schumer continued, “The stakes are too high -- legal sports betting laws must be crafted and executed in a careful and thoughtful way. As state legislatures develop new legislation in the weeks and months ahead, I hope they will take these principles under consideration. I also support the efforts in the Congress to debate and develop bipartisan federal legislation that would adhere to these principles. The integrity of sports is too precious to not protect as best we can.”

Senator Schumer’s full proposal, “Protecting the Games We Love After Murphy v. NCAA: A Federal Framework for Consumer Protection and Sports Integrity”, can be found here and the key components of the proposal are follows: 

1. Protecting young people and those suffering from gambling addiction:   

a. Prohibit anyone under the age of 21 from betting

b. Prohibit advertising targeted at young people and otherwise require responsible advertising.

c. Require that information be provided by any entity taking bets about the dangers of addiction and available resources to help encourage responsible betting. 

2. 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:

a. 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.

b. 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.

c. 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.

 3. 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:

a. Require that official league data be used to determine betting outcomes.

b. Require agreement between the league or appropriate governing body and those entities taking bets on what types of bets will be permitted.

c. 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.

d. 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.

 

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