Hawaii Senator Proposes Legislation to “Heavily Regulate” Prop Bets Amid Sports Betting Scandals

Hawaii Senator Brian Schatz has hinted at possibly introducing legislation next year that would see prop bets be “heavily regulated” throughout the United States. According to sports journalist Pablo Torre, the senator has been in talks with sporting leagues, player associations, and sportsbook operators nationwide regarding a potential regulatory change to prop bets. 

In a post on the social media platform X, Torre explained that the legislation would also include a crackdown on offshore operators, noting that the recent scrutiny of prop bet regulation stems from multiple gambling scandals involving the NBA and MLB. 

“Integrity is essential to competitive sport, and recent allegations in the NBA and MLB have made it clear that we need federal protections. ... This is about protecting fans and restoring public trust in sports,” Senator Schatz said in a statement, read by Torre. 

Torre added in his post that so far, this legislative push by Schatz is “uncharted legal territory” for Congress, as they have not yet passed a bill of this magnitude related to sports gambling. 

The legislation is bound to be popular among sporting franchises and lawmakers alike. In November, the NFL released a memo addressed to team officials, reemphasizing its stance on the types of wagers that should be permitted by league sportsbook partners, many of whom qualify as the best sports betting sites.

“Accordingly, we have actively engaged with both state lawmakers and regulators, as well as with our sports betting partners, to limit – and where possible prohibited altogether – prop bets in the NFL,” the statement read. 

Outside of sporting leagues, Senator Richard Blumenthal, in an interview with the political media outlet The Hill, also called for stronger regulation of sports betting as a whole and proposed more limits on prop bets, warning that these types of wagers could lead to further corruption in sports. 

Ohio Governor praises MLB for prop bet limits

In response to the scandal surrounding two Cleveland Guardians pitchers, the MLB last month announced new limits on micro-prop wagers that would see all MLB-authorized sportsbook operators include a $200 cap on wagers centered around individual pitchers, while prohibiting these bets from being included in parlays. 

Ohio Governor Mike DeWine, who has been very outspoken about prop bets in the past, commended the league’s decision to limit prop bets, saying that it would hopefully help protect the integrity of sporting events, and added that it was a model for other pro sports leagues to follow. 

“One-off bets that are not affecting the integrity of the game or involving players, especially these low dollar amounts, shouldn’t cause issues,” Tierney said. “We are hopeful that this does the job,” said Dan Tierney, spokesperson for Governor DeWine. 

Tierney added that the state’s gambling regulator, the Ohio Casino Control Commission, which oversees the Ohio sports betting market, would also be making sure that operators follow the MLB’s prop bet rules and noted that Governor DeWine has the power to call for stricter restrictions if “additional gambling schemes come to light.”