Bill proposed to repeal prohibition on sports betting in US

The Gaming Accountability and Modernization Enhancement Act or GAME Act, released by the House Energy and Commerce Committee, aims to remove federal barriers, give oversight authority to the Federal Trade Commission and outline consumer protections that states would need to have in place in order to offer legal sports betting, including fantasy sports.

Sports betting is legal in only a handful of states, with only Nevada allowed to offer a full wagering menu. Delaware, Nevada and New Jersey are the only states that allow online gaming. Legislation is advancing in Pennsylvania to legalize online gaming, as well.

The GAME Act defines a bet or wager as "the risking of something of value including virtual currency or virtual items, upon the outcome of a contest of others, a sporting event or a game of skill or a game of chance, on the expectation that the person will receive something of value in the event of a certain outcome.” Participation in lotteries, sports bets, fantasy sports and "fantasy esports” is included in definition of a bet or wager, according to the legislation.

Rep. Frank Pallone, D-New Jersey, the member on the Energy and Commerce Committee, is spearheading the legislation. After a yearlong review of federal gaming laws and the legal and illegal markets, Pallone said he found that illegal gaming is prevalent in the US and believes the laws need to be updated to maintain relevance and keep up with modern gaming.

"Despite the federal gaming laws in place today, Americans are betting up to US$ 400 billion a year on sporting events alone,” Pallone said in a statement announcing the legislation. "It’s time to recognize that the laws are outdated, and the GAME Act will modernize them by increasing transparency, integrity, and consumer protections.”

Under the GAME Act, facilities that accept bets in more than one state would be required to submit to the FTC a description of how they comply with the required consumer protections. Mechanisms for age and location verification, safeguards for data security and means of recourse for consumers are among the protections addressed by the GAME Act.