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The Push for Federal Gambling Reform: A Comprehensive Overview

By jili tutorial · September 26, 2026

The Push for Federal Gambling Reform: A Comprehensive Overview

In September 2026, U.S. Senator Richard Blumenthal (D-Conn.) and Representative Paul Tonko (D-N.Y.) stood alongside the Public Health Advocacy Institute (PHAI) in Washington, D.C., to launch a coordinated campaign aimed at overhauling the regulation of sports betting and prediction markets in the United States. Their call for federal guardrails comes as both industries continue to expand rapidly, raising urgent concerns about consumer protection, addiction, and public health. This guide breaks down the key figures, proposed legislation, industry opposition, and the broader context of the gambling reform movement.

Background: The Rapid Growth of Sports Betting and Prediction Markets

Since the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) in 2018, sports betting has expanded to dozens of states, generating billions in revenue for operators like DraftKings and FanDuel. Simultaneously, online prediction markets—platforms where users bet on the outcome of events such as elections, weather, or financial indicators—have surged in popularity, often operating in a regulatory gray area under the Commodity Futures Trading Commission (CFTC).

This explosive growth has been accompanied by rising rates of gambling addiction, financial harm, and mental health crises. Advocates argue that existing state-level regulations are inconsistent and insufficient, leaving consumers vulnerable to predatory practices.

Key Players and Their Motivations

Senator Richard Blumenthal and Representative Paul Tonko

Blumenthal and Tonko have long been vocal critics of the gambling industry’s lack of federal oversight. At the PHAI kickoff event, Blumenthal stated:

“We know that the gambling industry, which includes not only DraftKings and FanDuel but also the prediction markets, is exploiting problem gambling. They are relentlessly and tirelessly taking advantage of vulnerability to make more money.”

Tonko emphasized the need for safety measures around an inherently addictive product: “It is important for us to take a known addictive product and make that product a safer product. I don’t think that’s too much to ask.”

Together, they are championing two key pieces of legislation.

The Public Health Advocacy Institute (PHAI) and Dr. Harry Levant

The PHAI, based at Northeastern University School of Law, leads the gambling reform campaign under the banner “Truth and Integrity: The Movement for Gambling Reform.” The organization’s gambling policy is directed by Dr. Harry Levant, a former attorney who surrendered his law license in 2015 after admitting to stealing nearly $2 million from his clients to fund his own gambling addiction. Since then, Levant has dedicated his life to advocating for problem gamblers and their families.

Levant warns that the nation is facing a severe public health crisis:

“There is overwhelming evidence that we are in the midst of a mental health and public health crisis related to gambling addiction. This movement is just the beginning. It is a cry from the nation that we’ve had enough.”

The PHAI is also joined by Families and Friends of Gamblers (FFOG), a national nonprofit that supports those affected by a loved one’s gambling addiction.

Proposed Legislation: Two Federal Bills Under the Spotlight

The SAFE Bet Act (Supporting Affordability & Fairness With Every Bet Act)

Sponsored by Blumenthal and Tonko, the SAFE Bet Act aims to impose federal consumer protections on state-licensed sportsbooks. Key provisions include:

The bill is designed to supplement—not replace—state oversight, but it would set a national floor for consumer safety.

The Prediction Markets Security & Integrity Act

This newly introduced bill targets online prediction markets, which Blumenthal and Tonko argue operate as gambling products disguised as financial investments. The legislation would:

Currently, platforms like Kalshi and Polymarket are regulated by the CFTC as commodity derivatives, a classification that critics say allows them to avoid stricter gambling laws. The new bill would close that loophole.

Industry Opposition: Who Stands Against Federal Reform?

The American Gaming Association (AGA)

The AGA, which represents casino and sportsbook operators, opposes federal intervention. Their position is that state regulators are best equipped to handle gambling oversight, citing existing consumer protections and problem gambling programs at the state level. They argue that a one-size-fits-all federal approach would stifle innovation and duplicate efforts.

Prediction Market Operators

The prediction market industry also pushes back against the Prediction Markets Security & Integrity Act. Operators regularly defend their platforms as financial investing mechanisms, not gambling products. They argue that prediction markets provide valuable data and hedging opportunities, and that moving regulation to the states would create a fragmented, patchwork system.

The Public Health Crisis: Why Reform Is Urgent

Dr. Harry Levant’s personal story underscores the devastating impact of gambling addiction. According to the PHAI, the proliferation of sports betting apps and prediction markets has made gambling more accessible than ever, leading to increased rates of addiction, bankruptcy, suicide, and family breakdown.

A 2023 study by the National Council on Problem Gambling estimated that 2% of U.S. adults—roughly 5 million people—meet the criteria for a severe gambling problem, with millions more at risk. The availability of credit card betting, instant deposits, and around-the-clock access exacerbates these risks.

The “affordability checks” proposed in the SAFE Bet Act are inspired by the UK Gambling Commission’s “friction” checks, which require operators to intervene when a customer shows signs of financial distress. However, similar measures have been controversial abroad, with critics arguing they infringe on personal freedom.

What’s Next for the Gambling Reform Movement?

Blumenthal, Tonko, and the PHAI aim to build bipartisan support in both chambers of Congress. Levant expressed confidence that the movement can unite lawmakers from both sides of the aisle:

“This movement is just the beginning. It is a cry from the nation that we’ve had enough.”

The next steps include continued promotion of the SAFE Bet Act and the Prediction Markets Security & Integrity Act in upcoming legislative sessions. Public hearings, coalition-building with health organizations, and grassroots advocacy through FFOG will likely intensify.

Conclusion

The call for federal gambling reform represents a significant shift in the ongoing debate over how the U.S. should regulate an industry that is both economically powerful and socially risky. As sports betting and prediction markets continue to grow, the push for stronger consumer protections—through deposit limits, affordability checks, and reclassification of prediction markets—will remain a contentious but critical issue. Whether the movement can overcome industry opposition and achieve bipartisan consensus remains to be seen, but the stakes—for millions of American gamblers and their families—could not be higher.