Sen. Blackburn Calls for Federal Action on Sports Betting Expansion

Senator Marsha Blackburn states Congress is far from complete in its inquiry into the quick growth of sports betting and prediction markets. The recent hearing signals just the beginning. Blackburn, a Republican from Tennessee, chairs the Senate Commerce Subcommittee on Consumer Protection, Technology, and Data Privacy. She highlighted to Fox News Digital/OutKick the need for determining where federal intervention is necessary and where states should govern. The primary concern is protecting the integrity of American sports.

Blackburn emphasized the importance of preserving fair play in her statements. She believes Congress needs to define the roles of federal and state authorities as sports betting expands rapidly in the U.S. The hearing titled “No Sure Bets: Protecting Sports Integrity in America” focused on the increase of legal sports betting, prediction markets, gambling addiction, social media advertising, and scandals involving alleged manipulation in sports.

The distinction between sports betting and prediction markets was a key topic. Sports betting is mainly regulated at the state level. However, prediction markets claim to fall under federal commodities law and are regulated by the Commodity Futures Trading Commission. This distinction becomes significant as prediction markets venture into sports-related contracts, resembling sports betting.

During the hearing, American Gaming Association President and CEO Bill Miller criticized prediction markets as unregulated sports betting operations threatening state and tribal gaming systems established since the 2018 Supreme Court decision that overturned the federal sports betting ban (PASPA).

Opposing Miller, former Representative Patrick McHenry argued that prediction markets operate differently from sportsbooks. Participants trade with each other, and platforms earn transaction fees for facilitating trades, unlike traditional sports betting where the house sets odds.

Some senators struggled with these distinctions, like Sen. John Curtis from Utah, who saw prediction markets closely resembling traditional gambling. Sen. Jacky Rosen echoed this sentiment with a succinct analogy.

Young people’s exposure to gambling was another concern raised by Blackburn. She spotlighted how sports should promote values like teamwork and fair play. However, she warned about increasing legal sports betting accessibility through mobile devices across the country. As of now, 39 states and Washington, D.C. have legalized sports betting, with prediction markets largely permissible across all states.

A specific worry is the crisis among young men, with a significant portion admitting to gambling, often facilitated by social media algorithms serving gambling content without direct searches. Blackburn condemned advertising to minors, highlighting the platforms targeting youths.

Dr. Harry Levant of the Public Health Advocacy Institute presented testimony on the potential dangers of microbetting. He criticized the current sports betting system as akin to constant slot machine gambling due to data deals pushing in-game wagering.

Tennessee Sports Wagering Council Executive Director Mary Beth Thomas shared how Tennessee addresses integrity in sports betting by blocking risky bets and investigating suspicious activity. Her testimony included examples of state actions investigating and referring suspicious cases involving inside information.

Blackburn stressed the need for federal standards while commending state regulators’ efforts. She mentioned the committee would need to question the adequacy of the state-by-state approach or consider establishing a federal minimum standard.

The hearing concluded with Blackburn emphasizing Congress’s continued involvement and warning that without federal action, gambling might turn to offshore or illegal channels absent of oversight. Blackburn asserted the importance of extending laws into virtual spaces, suggesting Congress will play an essential role in crafting necessary regulations.