Sports Betting

Updated 11.03.2025

The rapid expansion of legalized sports betting across the United States has prompted renewed calls for federal oversight. While 39 states now allow some form of sports wagering, Congress has introduced legislation aimed at creating national standards to address consumer protection, integrity concerns, and public health risks.

WAGER Act (Winnings and Gains Expense Restoration Act)

Introduced by Rep. Andy Barr (R-KY) in response to tax changes under the One Big Beautiful Bill Act, this proposal restores the full deduction for wagering losses to 100%. The recent law reduced deductions to 90%, creating a tax burden for horseplayers and threatening track handle. The WAGER Act aims to protect the economic foundation of the $36 billion racing industry.

SAFE Bet Act of 2025 (H.R. 2087)

Introduced in March 2025 by Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT), the Supporting Affordability and Fairness with Every Bet Act seeks to establish minimum federal standards for sports betting. The bill focuses on five major areas: advertising restrictions, affordability checks, a ban on collegiate prop bets, AI restrictions, and public health measures. These include limits on gambling ads between 8 a.m. and 10 p.m., caps on deposits, prohibition of credit card use for gambling accounts, and creation of a national self-exclusion list.

Context and Industry Impact

The SAFE Bet Act comes amid record growth in sports betting, which generated $11 billion in revenue in 2023, a 44% increase over the previous year. Lawmakers argue that aggressive advertising and AI-driven targeting have fueled gambling addiction, while industry groups contend that state regulations are sufficient.

Related Proposals and Hearings

Additional proposals include a bill to ban college player prop bets nationwide, introduced in February 2025, and Senate Judiciary Committee hearings on gambling scandals involving professional sports figures. These hearings have signaled interest in broader reforms, including nationwide advertising standards and crackdowns on illegal offshore operators.

Next Steps

The SAFE Bet Act remains in committee with a low probability of passage in its current form, but elements of the bill—such as advertising restrictions and collegiate prop bet bans—are expected to surface in bipartisan negotiations later this year.