US Federal Approval of State Legislation Required To Pass New Betting Bill

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The US Attorney General will be able to potentially veto state-level legislation with the draft of a new US federal sports betting bill. It will also require bookmakers to make use of officially league-supplied data to carry out wagering.

The US Supreme Court had struck down the federal betting prohibition earlier this spring. So this new draft legislation is the first notable effort in reinstating at least some level of federal control over betting. The new draft legislation was first spotted by ESPN journalist David Purdum.

The bill had come from the office of Senator Orrin Hatch, who is slated to retire after the current lame duck session of the house of Congress. It was possible due to the support of Rep. Chuck Schumer which Hatch had secured in time. The legislative response promised by Rep. Jim Sensenbrenner to the federal betting disempowerment is also expected to help.

Since Hatch is facing his retirement, he will not have the power to push through the controversial betting bill. Republicans may also not see the new betting bill in good light as it may remind them of the states’ rights issues which had brought to an end the previous federal betting bill.

Stringent Rules

The draft bill mandatorily requires every state-level sports betting legislation to be sent to the US Attorney General for approval first. The AG can veto any bill he/she thinks does not meet the minimal standards and will have 180 days to take a call on it. The state would inevitably have to apply for a renewal of the bill every three years even if it passes the AG’s approval.

It is not very clear whether states who had already had their regulated betting markets approved before would have to submit for inspection again. Only six months from the Supreme Court decision and seven states have already witnessed the launch of wagering markets in a legal capacity.

Betting operators with a state-approved license will need to utilize league-supplied data to make wagers until December 21, 2022. Beyond this date, they may begin to use data that has been legally obtained and offers the same speed, consistency and accuracy of the former data source. The betting operators will also be required to submit betting information to a special non-profit which will oversee that no suspicious betting patterns emerge countrywide.


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