Orrin Hatch, Chuck Schumer introduce bipartisan bill for federal regulation of sports betting

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SALT LAKE CITY — A Utah Republican and a New York Democrat introduced legislation Wednesday for the federal government to regulate sports betting across the country.

The bipartisan Sports Wagering Market Integrity Act of 2018 would create safety measures to protect consumers, preserve the integrity of sporting events and ensure the propriety of the sports wagering market, according to Sens. Orrin Hatch, R-Utah, and Chuck Schumer, D-N.Y.

"This bill is the first step toward ensuring that sports betting is done right in the states that choose to legalize it," Hatch said. "Just as importantly, it provides protections for states that choose not to go down that path."

Schumer said that as a lifelong sports fan who treasures the purity of the game, he knows Congress has an obligation to ensure the integrity of sports is protected.

"That is why I believe the time is now to establish a strong national integrity standard for sports betting that will protect consumers and the games themselves from corruption," he said.

The American Gaming Association says federal regulation is a nonstarter for the industry.

"This bill is the epitome of a solution in search of a problem, representing an unprecedented and inappropriate expansion of federal involvement in the gaming industry, which is currently one of the most strictly regulated in the country," said Sara Slane, the association's senior vice president of public affairs.

The bill, which has support from the NFL and the National Council on Problem Gambling, would prohibit the acceptance of sports wagers, with exceptions for social gambling and states that meet certain minimum standards.

It would also ban betting on amateur sporting events, except the Olympics and college sports, and create consumer protections, including disclosure and advertising requirements.

The legislation would also dedicate revenue from the existing sports wagering excise tax to law enforcement and programs for the prevention and treatment of gambling disorder, as well as update fraud and bribery laws related to sports betting.

The U.S. Supreme Court in May overturned the Professional and Amateur Sports Protection Act, a bill Hatch wrote nearly 25 years ago to insulate athletic organizations against corruption associated with gambling.

In a Sports Illustrated op-ed after the ruling, Hatch cautioned against the "potential dark side of unchecked sports betting, including the risk of embroiling referees, coaches and even the players themselves."

"If anything, the Wild West world of sports gambling requires increased attention and engagement," he wrote in May. "Inaction on this issue is not an option."

Slane said some 4,000 public servants across the country already regulate all forms of gaming, including sports wagering, with more than $500 million committed to ensuring the integrity of commercial casinos' operations and $822 million spent on regulation of tribal gaming in 2015.

"These state and tribal regulators have decades of experience effectively overseeing gaming operations within their jurisdictions," she said.

Slane said the bills call for the mandatory use of official league data and the creation of a national sports wagering clearinghouse should be decided by marketplace negotiations between private businesses and cooperative agreements among jurisdictions.