US Kids Online Safety Act impacting the gaming industry

The United States Senate Committee’s Kids Online Safety Act of 2023 has received 43 co-sponsors from both national parties with the express intent of protecting minors from “online harms”. 

The lead sponsors of the Act are US Sen. Richard Blumenthal and Sen. Marsha Blackburn who have stated that the bill will focus on holding entities such as social media sites and other “covered platforms” responsible for what kids experience online.

These platforms would most certainly include any website with the purpose of promoting or accessing gambling activities.

The Act proposes that social media plus algorithms that target kids should be scrutinised and improved in order to improve internet safety by complying with several stringent regulations.

The Act itself

Firstly, platforms should require minors the option to protect their data, disable addictive features as well as opt out of personalised algorithmic recommendations. 

This would also extend to their parents who should be afforded new controls to support their children against harmful behaviours.

Social media platforms would be required to perform annual independent audits that expressly assess risk to minors, compliance with the act in question and whether meaningful attempts are being made towards compliance. 

Preventing and mitigating specific dangers to minors will also be made an imperative duty.

Concerns regarding underage gambling

Sen. Blumenthal named one of his major concerns to be addressed by the Act by stating that most states with legal online gambling, including sports betting, have as of yet not been truly effective at protecting those under the gambling age of 21.

The US Senator even wrote to the American Gaming Association (AGA) and Caesars Sportsbook and Casino last November to express concerns about sports betting being marketed towards college students.

In his letter to the AGA he stated:

“While I am encouraged by AGA’s initiative to set industry standards meant to ensure the casino industry and other affiliated entities respect the legal age for sports wagering and support responsible gaming, including on online platforms, it is critical that you safeguard consumers from members that violate this commitment.”

He would continue to explain his concerns about young person’s inability to gamble responsibly fearing “serious mental and financial consequences”.

AGA response

The AGA responded by bringing forth tighter responsible gaming standards which included updating its Responsible Marketing Code for Sports Wagering by changing all references to the “legal age of wagering” to 21-plus.

Additionally, the AGA added prohibitions on college sports betting partnership deals.

Despite these changes, the AGA has expressed concern about amendments to any legislation pertaining to its industry emphasising in an advocacy statement:

“The AGA firmly believes additional federal regulatory oversight of legal sports betting is unwarranted. States and tribal nations have proven to be effective regulators of gaming – including sports betting – and the more than 4,000 regulators nationwide have decades of experience overseeing gaming operations within their jurisdictions.”

Furthermore, the AGA also suggested that regulatory efforts should be directed more effectively at the illegal market which lacks transparency and safeguards that it re-iterated were ever prescient in the regulated marketplace.

SiGMA Balkans/CIS

As a globally recognised nexus for networking, SiGMA Group sets its sights next to the Balkans this September, when the SIGMA Balkans/CIS Summit heads to Limassol Cyprus.

A host of networking opportunities and industry-leading knowledge will be emanating from the much-anticipated event which will pack panel discussions, keynote speeches, start-up pitches and much more into 3 days in the diverse Cypriot city.