Gambling senate hearing
Sports betting in the US is set to come under the spotlight after a congressional hearing was announced to look into the industry.
Sen. Richard Blumenthal (D-CT), a noted gambling reform advocate, also sits on the committee.
The Senate Committee on the Judiciary will hold the hearing titled “America’s High-Stakes Bet on Legalized Sports Gambling” at 10am on Tuesday, December 17. The hearing will be chaired by Sen. Dick Durbin (D-IL). Sen. Richard Blumenthal (D-CT), a noted gambling reform advocate, also sits on the committee.
The exact agenda of what will be discussed is not yet known, but in addition to Blumenthal, the list of senators on the committee includes other reformers and lawmakers who have written to the Federal Trade Commission (FTC) over alleged anti-competitive practices from DraftKings and FanDuel.
Gambling reform
Sen. Blumenthal introduced the Supporting Affordability and Fairness with Every Bet Act, or the SAFE Bet Act, along with Rep. Paul Tonko (D-NY), earlier this year.
the SAFE Bet Act called for restrictions on gambling advertising and deposit limits
Among other policies, the SAFE Bet Act called for restrictions on gambling advertising and deposit limits as part of an overall proposal to address the public health concerns surrounding the betting industry.
The act received some pushback at the time from the American Gaming Association and lawmakers such as Rep. Dina Titus (D-NV), who called for the industry to remain regulated at the state and local level rather than introduce federal laws.
Antitrust concerns
One other matter which could be on the agenda is the status of DraftKings and FanDuel as the pre-eminent online sportsbooks in America.
Two of the senators on the committee are Sen. Mike Lee (R-UT) and Peter Welch (D-VT), who last week wrote a letter to the FTC urging an investigation into accusations of anti-competitive business practices from the two operators.
Fanduel and DraftKings may be in breach of Section 1 of the Sherman Act
The two lawmakers stated that FanDuel and DraftKings may be in breach of Section 1 of the Sherman Act, an antitrust law that seeks to prevent agreements that are restrictive of trade and free enterprise.
According to Lee and Welch, the two sports betting giants may have joined forces with the Sports Betting Alliance to prevent the emergence of competitors by restricting their ability to conclude deals with partner organizations. However, the claims drew considerable skepticism from analysts.
The letter states: “After their merger to monopoly was blocked, it seems that FanDuel and DraftKings have arguably acted as one company, violating our antitrust laws.”
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