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NBA betting scandal prompts U.S. Congress to push for sports gambling regulatory reform

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After the FBI arrested suspects involved in an illegal gambling ring with NBA players, bipartisan members of Congress strongly called for enhanced federal regulation of sports betting, pushing for a nationwide ban on college sports prop betting, establishing federal advertising standards, and cracking down on offshore illegal gambling operators. The House Energy and Commerce Committee and the Senate Judiciary Committee have requested NBA Commissioner Adam Silver to brief on the details of the incident and the league's response measures. Several previously shelved bills have been reactivated, including the "Safe Betting Act." This incident has once again exposed loopholes in sports betting regulation, and legislators emphasize the need for federal action to maintain sports integrity and consumer protection.

Congressional Reaction and Committee Actions

Following the exposure of the NBA illegal gambling case, bipartisan members of Congress jointly called for reforms to the federal sports betting regulatory system. The House Energy and Commerce Committee requested NBA Commissioner Adam Silver to provide a briefing on the incident, to understand the effectiveness of the league's current code of conduct and to reassess policies of cooperation with betting companies. Senators Ted Cruz and Maria Cantwell have asked the NBA to submit all internal gambling investigation documents since 2020, emphasizing the need to eliminate organized crime and gambling corruption to ensure game fairness. The Senate Judiciary Committee had held a hearing on sports betting but did not continue to follow up.

Core Regulatory Proposals and Legislative Initiatives

Several regulatory proposals have been restarted or newly proposed, including: a nationwide ban on college sports prop betting; establishing federal advertising and affordability standards; and strengthening the crackdown on offshore illegal operators. Senator Dick Durbin supports a nationwide prop betting ban, believing that legislation is needed to prevent game manipulation. NCAA President Charlie Baker has launched a nationwide campaign to ban college player prop betting, and some states have already implemented such bans. The "Safe Betting Act" proposes establishing national advertising standards, banning special college sports betting, and restricting AI from targeting bettors, but it is still shelved in the committee.

Enforcement Strengthening and Industry Impact

Eleven bipartisan senators jointly wrote to the Department of Justice, requesting strict enforcement against offshore gambling websites under the "Unlawful Internet Gambling Enforcement Act" to protect youth from illegal gambling. State regulatory agencies have issued cease orders to hundreds of illegal operators, and in 2023, several states requested DOJ support to combat the illegal market. Opponents warn that a comprehensive ban might force demand to shift to overseas markets, increasing regulatory difficulties. Legislators believe it is necessary to balance the measures of the ban with market realities to avoid fostering greater black market risks.

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