New Bill May Require iGaming, Betting Companies to Change Data Policies

Across the United States, licensed betting and online gambling operators must comply with the regulatory framework established in each different state. While some rules match, others differ which makes compliance challenging, especially considering that there are nearly 40 states that currently offer legal betting.

Now, a newly released draft proposal calls for the establishment of a comprehensive federal consumer privacy framework. The draft of the American Privacy Rights Act (APRA) was released by Senate Commerce Committee chair Maria Cantwell together with Cathy McMorris Rodgers, the House Energy and Commerce Committee’s chair.

An overview of APRA describes the proposal as a measure that would “establish national consumer data privacy rights and set standards for data security.” Additionally, the draft “would require covered entities to be transparent about how they use consumer data and give consumers the right to access, correct, delete, and export their data, as well as opt out of targeted advertising and data transfers.”

Ultimately, APRA is after creating a unified data privacy standard valid for companies across the country. The proposed framework would guarantee the protection of sensitive customer data, while allowing consumers to access, change, delete their data or reject the possibility of sharing such information.

The Proposed Draft Legislation May Affect Major US Betting Operators

Although the draft legislation doesn’t name gambling operators per se, it is likely that APRA would affect them as well. This is because, per the proposal, covered entries or the organizations and companies that would be affected, include large data holders.

Such are companies that collect, retain, process or transfer sensitive data of more than 200,000 individuals. The entities also recognized as large data holders include companies that have more than $250 million in annual revenue or collect, retain or transfer data of more than 5 million people.

In other words, it is likely that large betting operators across the US, including FanDuel, DraftKings and BetMGM, for example, might be affected by the proposal. It is yet to be confirmed what the impact of the sector would be and how gambling operators may need to change their existing data policies.

In the context of the proposal, a transition is seen in the responsibility from the side of the consumer to the company that collects the customer data. Per APRA, the companies that are affected by the regulation would be permitted to use the personal data for limited purposes, while at the same time, disclosing information to third parties would be prohibited in some cases or may require additional approval from the consumers.

Currently, it is too soon to determine what the broader impact of the proposal would be on the gambling industry in the country.