Sports Betting Regulation in the USA: A Comparative Analysis with Europe

The landscape of sports betting regulation in the United States is rapidly evolving, with significant changes on the horizon. As the industry expands, both federal and state-level regulations are being re-evaluated to address consumer protection and ensure fair practices. This article will provide an overview of the current and upcoming regulatory changes in the USA, compare these with the regulatory frameworks in European countries, and explore the broader iGaming industry, including specific regulations affecting slot machines. 

Current and Upcoming Changes in US Sports Betting Regulation 

Since the Supreme Court's decision to overturn PASPA in 2018, allowing states to legalize sports betting, the industry has seen exponential growth. Several states have already legalized sports betting, while others are in the process of considering legislation. Let’s look at some notable regulatory developments as of 2024. 

Federal Legislation  

The introduction of the SAFE Bet Act by the U.S. Representative Paul Tonko aims to provide federal oversight to mitigate gambling-related harms. This act is designed to protect consumers by ensuring responsible gambling practices and transparency in the sports betting industry. 

State-Level Developments 

California: Despite numerous attempts, California has yet to legalize online sports betting due to the requirement for a two-thirds supermajority in the legislature. However, efforts are expected to continue. 

Georgia: Failed to pass sports betting legislation in 2024, but new bills are anticipated in 2025. 

Minnesota: Despite initial progress, legislation did not pass in 2024, with further efforts expected in the next session. 

Texas: The state will reconsider sports betting legislation in 2025. 

iGaming Expansion 

States like New York are looking to introduce legislation for iGaming, recognizing its revenue potential. Other states such as Illinois, Indiana, and Maryland are also exploring similar regulatory frameworks. 

Comparative analysis with European regulations 

European countries have long-established and comprehensive frameworks for regulating sports betting and other forms of gambling. These regulations are often more uniform and stringent compared to the fragmented approach in the United States. 

United Kingdom  

The UK Gambling Commission (UKGC) regulates all forms of gambling, including sports betting and iGaming. The UKGC focuses on protecting consumers, preventing gambling-related harm, and ensuring the integrity of the gambling market. Operators must adhere to strict licensing conditions, including measures to promote responsible gambling and prevent money laundering. 

Germany 

Germany's Interstate Treaty on Gambling regulates sports betting and online gambling, imposing strict licensing requirements and advertising restrictions. The treaty aims to create a safe and fair gambling environment, with a focus on player protection and addiction prevention. 

France 

The French online gambling regulator, ARJEL, oversees sports betting, poker, and horse racing. France has stringent regulations to ensure transparency and consumer protection, including limits on advertising and promotions. 

Regulation of iGaming: Slot machines and "Feature Buy" 

Within the broader iGaming industry, specific regulatory attention is given to slot machines, particularly those with "Feature Buy" options, also known as bonus buy slots. These options allow players to purchase bonus features directly rather than waiting for them to trigger during normal gameplay. This has caused regulatory concern in certain areas. 

Consumer Protection 

Regulators worry that “Feature Buys” can encourage excessive spending and gambling addiction. To mitigate these risks, some jurisdictions impose limits on the frequency and cost of these features. 

Transparency and Fair Play 

Ensuring that players understand the odds and costs associated with "Feature Buy" options is crucial. Regulations often require clear disclosure of these details to prevent misleading practices. Two examples include: 

United Kingdom: The UKGC banned bonus buy features in 2019, citing concerns about the increased risk for problematic gambling behavior. 

Germany: Under the new Interstate Treaty on Gambling, Germany imposes restrictions on the availability and promotion of "Feature Buy" options to protect consumers from potential harm. 

Conclusion 

The regulation of sports betting and iGaming in the USA is evolving, with both federal and state-level changes aimed at ensuring consumer protection and fair practices. Compared to Europe, where regulatory frameworks are more established and uniform, the USA is still in the process of defining its regulatory landscape. As the industry continues to grow, ongoing adjustments and the introduction of new regulations, particularly in areas like iGaming and slot machine features, will be crucial to maintaining a safe and fair gambling environment.