Two Democratic lawmakers push for federal gambling rules as sports betting and prediction markets expand in the US

Sen. Richard Blumenthal and Rep. Paul Tonko are backing a fresh push for federal guardrails on US gambling, with sports betting and prediction markets both in the frame. For PSPs and operators, the important bit is not the rhetoric — it is the possibility that advertising, affordability checks, self-exclusion, and product design could all end up with federal standards attached.

1. Blumenthal and Tonko joined the Public Health Advocacy Institute and Families and Friends of Gamblers in Washington, DC, on September 23 for the launch of Truth and Integrity: The Movement for Gambling Reform. The campaign is aiming for major changes to both federal and state gambling regulation, which is a fairly direct signal that this is not just another symbolic press event.
2. The lawmakers have already introduced the SAFE Bet Act, which would require states that offer sports betting to meet federal standards covering advertising, affordability, and the use of artificial intelligence. The bill would also restrict certain advertising practices, require affordability checks before larger wagers are accepted, and add provisions around deposits, self-exclusion, and technology used to track customers and create personalized promotions.
3. They have also backed a separate bill targeting online prediction markets. The Prediction Markets Security and Integrity Act, introduced by Blumenthal in March with Sen. Andy Kim, would create federal consumer safeguards while returning regulatory authority over prediction markets to individual states. It addresses underage use, fraud, market manipulation, and the conditions under which bets are settled.
4. At the September 23 event, Blumenthal said gambling companies, including sports betting operators and prediction market platforms, are benefiting from vulnerable customers. Tonko said the goal is to take a possibly addictive product and make it considerably safer. Dr. Harry Levant of the Public Health Advocacy Institute framed gambling addiction as a public health concern and said the campaign would seek support in Congress and at the state level.
5. The industry response is, predictably, not enthusiastic about more federal involvement. The American Gaming Association said sports betting is already regulated by state and tribal authorities and opposed efforts that would weaken that system. It also said prediction markets offering sports-related contracts are operating outside state regulatory frameworks, which is where the current fight gets interesting: these products are expanding faster than the rulebook around them.

The practical issue for high-risk payments is straightforward: if either bill gains traction, operators could face new compliance expectations around deposit flows, user screening, marketing, and settlement logic. For PSPs and acquirers, that means more pressure to know not just the merchant, but the product type and the jurisdictional lane it is running in.