NCPG Report Reveals Gaps in U.S. States' Sports Betting Regulations

In its latest report,U.S. States’ Online Sports Betting Regulations: An Evaluation Against National Council on Problem Gambling Standards, the National Council on Problem Gambling (NCPG) has found that most U.S. states are falling short in protecting consumers from gambling-related harm. On average, states met only 32 out of 82 player protection standards set by NCPG’s Internet Responsible Gambling Standards (IRGS). The report aims to guide states in identifying shortcomings in their current laws and regulations and provides a clear framework for improving consumer protections and promoting responsible gambling.

The Internet Responsible Gambling Standards (IRGS)

Originally established in 2012 and most recently updated in December 2023, the IRGS serves as a comprehensive guideline for regulators, operators, and vendors in the gaming industry. Its purpose is to prioritize player protection and reduce the risks associated with problem gambling. The IRGS outlines 82 standards, reflecting best practices in responsible gambling, and focuses on safeguards for individuals vulnerable to gambling issues.

The IRGS covers a broad range of topics, including governance, staff training, informed decision-making, self-exclusion tools, and marketing practices. It also emphasizes the importance of fair play, customer support, and ensuring responsible advertising. As sports betting continues to expand across the U.S., these standards are critical in mitigating gambling-related harm and ensuring player safety.

The NCPG’s report, prepared by Vixio Regulatory Intelligence, evaluated 30 U.S. states and the District of Columbia that had legalized mobile sports betting as of June 2024. The report compared each state’s sports betting regulations to the IRGS standards and revealed significant discrepancies in how well states were adhering to these guidelines.

Connecticut, New Jersey, and Virginia stood out as the top performers, meeting 49 of the 82 standards. These states have well-established regulatory frameworks that focus on areas such as annual staff training, responsible advertising aimed at adult audiences, and strict age verification processes. Their devotion to maintaining high levels of player protection sets them apart from the other states included in the analysis.

Keith Whyte, Executive Director of NCPG, emphasized the importance of the IRGS, stating, “The IRGS serves as a roadmap for states to utilize when developing sports betting regulations, ensuring that player protection remains the top priority. This report reflects the patchwork nature of existing regulations and the significant gaps in consumer protections.”

Other states also performed reasonably well. Ten states, including Colorado, Louisiana, Massachusetts, New York, North Carolina, Pennsylvania, Tennessee, and the District of Columbia, met 40 or more of the standards. These states have taken significant steps in adopting responsible gambling measures, though they still fall short of fully meeting NCPG’s benchmarks.

Room for Improvement

Despite the positive examples set by some states, the report highlighted substantial gaps in other regions. Nine states, including Arizona, Illinois, Maryland, Michigan, and Ohio, met between 25 and 39 of the IRGS standards. These states have implemented some key measures, such as budget management tools and self-exclusion programs, but lack comprehensive staff training protocols and adequate customer support for players at risk of gambling addiction.

Eleven states performed the worst, meeting only 10 to 24 of the IRGS standards. These states—such as Florida, Iowa, and Nevada—showcase a significant lack of proper governance practices and insufficient support for players to make informed decisions. The failure to meet the majority of the IRGS standards highlights the need for immediate regulatory reforms to ensure player safety.

Keith Whyte further called on legislators and regulators to take action, stating, “We urge legislators and regulators to take immediate steps to close these gaps and work to mitigate gambling-related harm.”

The Call for Federal Oversight

As sports betting continues to gain widespread acceptance in the U.S., lawmakers are starting to push for national regulatory oversight to ensure that minimum player protection standards are met across all states. Earlier this month, Rep. Paul Tonko and Sen. Richard Blumenthal introduced the Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, which aims to establish a federal framework for regulating sports betting.

The SAFE Bet Act proposes a set of federal minimum standards for regulators and operators, which would include banning gambling advertisements during prime time and live sporting events. The bill also seeks to restrict the use of terms like "bonus" and "no sweat" in advertising to ensure that promotional content does not mislead consumers.

This push for national oversight aligns with the NCPG’s findings, which show that many states are not doing enough to protect consumers from gambling-related harm. The implementation of a federal regulatory framework could help bridge the gap and provide consistent player protections across the country.

The NCPG’s report provides a valuable resource for states seeking to improve their sports betting regulations and better protect consumers. By adhering to the IRGS standards, states can ensure that they are prioritizing player protection and promoting responsible gambling.

To further discuss the findings of the report, the NCPG will be hosting a free webinar on September 24, which will provide additional insights into how states can strengthen their sports betting regulations and reduce the risks associated with gambling.

Source:

''Report: State Sports Betting Regulations Fall Short of Providing Adequate Consumer Protections'', ncpgambling.org, September 19, 2024.