A poker and sports betting gambling scandal with NBA ties has reignited calls in Washington to tighten sports betting laws.
Fresh calls for federal crackdowns and nationwide prop‑bet bans emerged after last week’s FBI arrests tied to an illegal NBA gambling ring. Congress, though, has left marquee sports betting proposals parked in committees for months.
While the scandal gave some lawmakers new momentum to call for federal oversight and to summon NBA Commissioner Adam Silver for additional information, Congress has rarely discussed sports betting issues since the Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA) in 2018. Meanwhile, state lawmakers have been slow to make changes to the actual function of sports betting once it is legal in a market, often leaving alterations to regulators.
Aside from a Congressional hearing in December, the industry has largely avoided significant federal scrutiny since PASPA fell. Senator Dick Durbin, who chairs the Senate Committee on the Judiciary where the hearing was held, said at the time it was not the end of the sports betting discussion. However, that hearing veered off topic and there has not been another meeting scheduled.
States tighten sports betting industry
Seven years after PASPA fell, 39 states offer some form of legal sports betting. As the industry has matured, some state lawmakers across the country have looked to rein the industry in. State legislators at large, though, appear to want to take a hands-off approach on the industry once it is legalized.
Most extreme was a bill in Maryland earlier this year that proposed an outright repeal of online sports betting. The proposal did not receive a committee hearing. Maryland’s online sportsbooks launched in November 2022. A Vermont lawmaker introduced a similar bill this year but also did not receive a hearing.
In Connecticut, lawmakers looked at shoring up the industry this session, including a maximum hold for sportsbooks and allowing consumers to opt out of viewing certain types of wagers. The multiple bills, however, did not advance.
Where legislatures have acted, it is often to help a state’s fiscal situation, as several states have also increased sports betting taxes since market launches. Illinois moved from a flat 15% initial tax to a tiered system of 20% to 40% based on revenue. The state also implemented per-bet fees. Ohio, Louisiana and Maryland also have increased their tax rates.
Are state regulators most efficient for change?
State regulators have been most active in shaping the industry, with agencies like the Massachusetts Gaming Commission and Ohio Casino Control Commission watching sportsbooks closely monitoring, shaping and enforcing industry rules as issues arise.
New York and Illinois regulators have also tightened advertising rules.
Regulators have also been the most efficient in changing prop bet rules, largely related to college sports. The OCCC, Maryland Lottery and Gaming, and Louisiana Gaming Control Board changed their rules to prohibit the bet type for NCAA games last year.
Bills pushing federal sports betting guidelines
The most comprehensive federal proposal filed is the Supporting Affordability and Fairness with Every Bet Act (SAFE Bet Act), which Senator Richard Blumenthal and Rep Paul Tonko have introduced the past two sessions. Blumenthal’s Senate version was referred to the Committee on the Judiciary in March. Tonko’s version was sent to the Committee on Energy and Commerce. The committees have not heard the bills.
The lawmakers believe federal oversight is important to mitigate public health risks.
“We are not here because we want to stop the industry from breaking [revenue] records, nor are we here to prevent Americans from wagering on sports should they choose to,” Tonko said when they reintroduced the bill in March 2025. “We’re here today because government, at every level, has failed to pay attention to or understand the impact of gambling-related harms.”
The legislation:
Calls for a national advertising framework for gambling industry TV ads between 8am and 10pm. It would prohibit words like “bonus”, “risk-free” and “no-sweat”.
Prohibits collegiate player prop bets and in-play betting.
Restricts artificial intelligence helping target bettors.
In the 2025 version, Tonko said the proposal requires states to work with federal agencies to crack down on illegal operators. State regulators sent hundreds of cease-and-desist orders to illegal operators this year and asked for federal assistance in the past.
Prop bets major target after NBA gambling arrests
Perhaps the loudest champion for nationwide action to institute nationwide guidelines is NCAA President Charlie Baker. He advocates for a nationwide ban on collegiate prop bets.
Rep. Michael Baumgartner introduced a college prop bet ban in February. He does not call for a ban on professional prop bets. Several states, including North Carolina and New Jersey, have introduced bills to prohibit collegiate prop bets, but few have advanced far.
“The world of prop bets has opened up a lot of potential for illegal activity and issues that can threaten games,” Baumgartner said in an interview with the Washington Post last week.
However, regulated sportsbooks and integrity monitors helped uncover the illegal activity, underscoring how the legal market can detect suspicious betting patterns.
Other federal bills on gambling similarly parked
Tonko began targeting sports betting in bills in 2023, starting with the Betting on Our Future Act. It would have treated sports betting ads with a complete FCC ban, the same as cigarettes. It was referred to the Subcommittee on Communications and Technology but did not move.
Blumenthal began calling for colleges to end sports betting partnerships in 2022. He also co-sponsors the Gambling Addiction Recovery, Investment and Treatment Act, or GRIT Act, which would dedicate the 0.25% federal excise tax on sports betting handle to problem gambling treatment and research. He first introduced the GRIT Act in 2024.
Nevada Rep Dina Titus has worked to repeal the federal excise tax since at least 2014. Other lawmakers have since co-sponsored similar legislation. Titus said the tax, which has been in place since 1951, gives offshore and illegal operators an advantage. Sportsbook operators have paid more than $500 million in excise tax since 2018.