US Representative Paul Tonko Renews Push for Federal Sports Betting Regulation

The tension between US policymakers and leading gambling operators is reaching a boiling point. Democratic Congressman Paul Tonko of New York has issued a sharp rebuke to FanDuel after the sportsbook provided incomplete answers to congressional inquiries about its VIP programs and responsible gambling measures. Tonko views the operator's evasive responses as proof that federal intervention is necessary to protect consumers from the rapid expansion of the sports betting market since 2018.

The conflict was triggered by a specific incident involving Philadelphia Phillies star Bryce Harper. In 2024, Harper recorded a personalized video message via the Cameo platform for a high-spending VIP bettor who is now suing FanDuel for allegedly exacerbating his severe gambling addiction. Harper stated he was unaware of how the video would be used by the operator. This case has provided Tonko with the political momentum to promote his SAFE Bet Act, which he reintroduced alongside Senator Richard Blumenthal in March 2025.

Numbers and facts

At the heart of the criticism is FanDuel's refusal to answer five out of eight specific questions posed by lawmakers. The inquiries included whether VIP customers attempting to reduce their wagering were offered incentives to continue, whether promotions target users on losing streaks, and how the company identifies problematic behavior.

The SAFE Bet Act proposes significant restrictions, including a ban on sports betting advertisements during live broadcasts. The legislation would also prohibit wagering by individuals under 21 and members of professional sports organizations. Furthermore, the bill suggests that states must seek approval from the US Attorney General every three years to continue offering sports betting. Currently, 38 states plus the District of Columbia have legalized wagering.

"FanDuel’s response demonstrated a ‘broken’ responsible gaming model and renewed my call for approval of the proposed SAFE Bet Act." - Paul Tonko, US Representative

Background

Resistance to the bill is formidable. The American Gaming Association and industry lobbyists argue that the SAFE Bet Act would infringe upon state sovereignty. Legal experts like Jeff Ifrah describe the proposal as unconstitutional due to its federal registration requirements. Additionally, academics such as Dr. Tim Fong of UCLA warn that the bill might do more harm than good by disrupting established state-level regulatory frameworks.

Meanwhile, in Kansas, the House of Representatives voted in April for a budget provision that prevents expenditures on negotiating or renewing sports wagering contracts for the 2025 and 2026 fiscal years. While Jeremy Kudon of the Sports Betting Alliance noted that most existing contracts run until 2027, the political climate remains volatile. In March, Kansas recorded a betting handle of $248.4 million and $8 million in revenue.

Why it matters for German players

For players in Germany, the US debate highlights the importance of a stable, national regulatory framework. While the US is struggling to implement federal standards, Germany established clear rules with the State Treaty on Gambling 2021 (GlüStV 2021). Measures currently being debated in the US, such as deposit limits and advertising restrictions, are already mandatory in Germany. Players benefit from the GGL whitelist, ensuring that only licensed operators are active.

The German 1,000 Euro monthly deposit limit and the LUGAS monitoring system prevent the kind of VIP excesses reported in the FanDuel case. The 1 Euro stake limit for virtual slots further protects consumers. By choosing GGL-licensed operators, German players are shielded from aggressive marketing tactics and benefit from early detection systems for gambling addiction, as the GGL imposes strict requirements on all licensees.

What it means for GGL-licensed casinos

GGL-licensed operators in Germany can see the US developments as a validation of their regulatory environment. A sustainable business model relies on player protection and transparency rather than exploiting VIP clients with addiction issues. While strict German rules may limit short-term profits, they prevent the PR disasters and legal battles currently faced by FanDuel. Operators failing to comply in Germany risk losing their licenses, a much more effective deterrent than political appeals in Washington.