U.S. Rep. Frank Pallone, Jr. (D-NJ) is sponsoring a bill in the House that would legalize sports betting and online gambling if appropriate consumer protections are in place.
The Gaming Accountability and Modernization Enhancement (GAME) Act would essentially remove the federal obstacles to legalized gambling at the state level. It does not create a federal framework for gambling and instead allows states that choose to legalize and regulate sports betting and/or online gambling to do so.
“Despite the federal gaming laws in place today, Americans are betting up to $400 billion a year on sporting events alone,” Pallone said. “It’s time to recognize that the laws are outdated, and the GAME Act will modernize them by increasing transparency, integrity, and consumer protections.”
The draft removes federal barriers in states that have implemented basic consumer protections, including mechanisms for age and location verification, safeguards to protect privacy and data security of players, and recourse mechanisms for consumers.
Pallone has conducted an extensive review of the federal gaming laws and the effects on the legal and illegal gambling markets. The review found that the current system is not working as intended, as illegal gambling and other forms of gambling that skirt federal laws are prevalent.