The SAFE Bet Act, introduced in March 2025 by Senator Richard Blumenthal and Representative Paul Tonko, is a federal proposal to regulate online sports betting across the United States. Until now, sports betting has largely been managed on a state-by-state basis, resulting in a patchwork of laws and varying consumer protections. The Act would require states to meet federal standards before offering sports betting, marking a potential turning point in how the industry operates.

One of the most notable features of the SAFE Bet Act is its approach to advertising. Under the proposal, sportsbooks would face strict ad restrictions, including blackout periods from 8 a.m. to 10 p.m. and prohibitions on promotions during live sporting events. Bonus offers, odds boosts, and risk-free wagers would be limited, shifting the focus toward responsible marketing and consumer protection.

The Act also addresses financial safeguards for players. It would limit users to five deposits per 24 hours, ban credit card funding, and require affordability checks for high-value bets. These measures aim to prevent excessive gambling and mirror financial oversight practices, introducing new compliance responsibilities for operators.

Artificial intelligence and product design are also targeted under the SAFE Bet Act. Personalized promotions based on AI tracking would be prohibited, and microbet products would be banned entirely. This could significantly impact the industry’s data-driven engagement strategies, forcing operators to rethink innovation and customer retention methods.

College and amateur sports betting would face nationwide restrictions, with proposition bets on student athletes banned except during global events like the Olympics. This uniform rule aims to protect amateur sports and remove profitable inconsistencies between state regulations.

What is the law about?

The Act proposes a national oversight system, including federal approval of state markets, a self-exclusion clearinghouse, surveys on betting behaviors, and a Surgeon General report on public health impacts. These measures are designed to enhance consumer protection while leveling the playing field against offshore operators.

While the SAFE Bet Act is still in the early legislative stages, its introduction signals a shift in the U.S. regulatory conversation. Even if it doesn’t pass in full, the bill could influence incremental reforms, such as advertising curbs, deposit limits, and AI restrictions, gradually shaping the future of online sports betting.

For operators, this is a clear early warning: the era of light-touch, state-specific oversight is ending. The coming years may bring stricter rules, higher compliance costs, and more scrutiny on marketing and product design. Operators who anticipate these changes will be better positioned to adapt and thrive in a rapidly evolving market.

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