Policy Proposal: Addressing Online Gambling and Its Impact on Communities

I. Introduction

• The exponential growth of online gambling has introduced significant societal and ethical challenges. What was once confined to physical establishments has expanded into the digital realm, reaching millions of Americans through smartphones and computers with minimal oversight. The recent NBA officiating and gambling scandals further underscore the urgent need for reform. These incidents reveal the ease with which unregulated or poorly monitored betting systems can erode public trust in sports, digital integrity, and economic fairness.

II. Policy Goal

• To establish a comprehensive federal framework that restricts exploitative online gambling practices, prevents corruption in sports and digital gaming, and protects consumers—particularly minors and vulnerable populations—from addiction and financial harm.

III. Strategic Policy Framework

A. Strengthen Consumer Protections

1. Require all online gambling platforms to implement government-certified identity verification and self-exclusion systems.

2. Mandate clear, continuous display of wagering limits, odds, and risk disclaimers during all gambling sessions.

3. Enforce national caps on daily and monthly spending across all platforms to prevent catastrophic financial losses.

B. Regulate Advertising and Promotion

1. Ban all targeted gambling advertisements aimed at minors or at-risk individuals identified through behavioral data.

2. Prohibit deceptive ‘risk-free bet’ promotions and misleading bonus incentives that encourage compulsive betting.

3. Enforce mandatory disclaimers in all marketing materials, similar to pharmaceutical or alcohol advertisements.

C. Federal Oversight and Enforcement

1. Create a Federal Gambling Oversight Commission (FGOC) tasked with licensing, auditing, and enforcing online gambling compliance.

2. Require full public transparency of payout ratios, house advantages, and consumer complaint resolution statistics.

3. Implement severe penalties, including permanent bans and criminal liability, for unlicensed or fraudulent operators.

D. Address Corruption in Sports and Digital Gaming

Prohibit active athletes, referees, coaches, and league officials from engaging in any form of sports wagering, including indirect or proxy bets.

Establish federal monitoring systems in partnership with major leagues (e.g., NBA, NFL, NCAA) to detect irregular betting patterns.

Launch a federal investigation into the impact of recent NBA gambling controversies to determine vulnerabilities and strengthen compliance standards.

E. Fund Addiction Treatment and Public Awareness

1. Require that a fixed percentage (no less than 3%) of online gambling tax revenue be allocated to gambling addiction treatment and prevention.

2. Establish a national awareness campaign emphasizing the psychological and economic risks of online betting.

3. Expand federal grants for behavioral health research focused on gambling disorders and technology-driven addiction.

IV. Policy Options

Option A: Comprehensive Federal Ban on Online Gambling

• A complete prohibition on all forms of online gambling, including casino-style gaming, sports betting, and e-sports wagering. Pros: Ensures full protection of minors and eliminates corruption risk. Cons: Potential loss of regulated tax revenue; increased risk of black-market activity.

Option B: Regulated Access Under Federal Authority (Preferred Option)

• Allow online gambling only through federally licensed operators, subject to strict consumer and transparency requirements. Pros: Preserves state revenue while ensuring safety and accountability. Cons: Requires significant oversight infrastructure and interstate coordination.

Option C: State-Level Autonomy with Federal Baselines

• Permit states to manage licensing while adhering to minimum federal standards for consumer protection and anti-corruption oversight. Pros: Balances state control with national consistency. Cons: Creates patchwork enforcement and potential cross-border loopholes.

V. Implementation Plan

1. Draft federal legislation establishing the Federal Gambling Oversight Commission (FGOC).

2. Conduct an interagency study with the Department of Justice, Federal Trade Commission, and major sports leagues to review the NBA scandal findings.

3. Develop uniform digital compliance standards for all online gambling and betting applications within 12 months of passage.

4. Launch national addiction awareness and treatment funding programs within 24 months of enactment.

VI. Campaign Messaging

• Kelly Thompson believes in responsible governance that prioritizes the protection of American families over unchecked corporate profit. Online gambling has evolved faster than regulation, leading to addiction, corruption, and loss of trust in major institutions. By addressing the systemic failures exposed by the NBA gambling controversies, this policy will restore fairness, integrity, and accountability in both gaming and sports industries.