iGaming Data Policies Set to Change with American Privacy Rights Act

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Licensed betting and online gambling operators in the United States must adhere to regulatory frameworks set by each state. While some rules align, others differ, making compliance a challenge, especially with nearly 40 states offering legal betting.

A new draft proposal aims to establish a comprehensive federal consumer privacy framework. The draft of the American Privacy Rights Act (APRA) was released by Senate Commerce Committee chair Maria Cantwell and House Energy and Commerce Committee chair Cathy McMorris Rodgers.

Act to Create National Consumer Data Privacy Rights

APRA is described as a measure to "establish national consumer data privacy rights and set standards for data security." The draft also "requires covered entities to be transparent about their use of consumer data and gives consumers the right to access, correct, delete, and export their data, as well as opt out of targeted advertising and data transfers."

APRA seeks to create a unified data privacy standard for companies nationwide. The proposed framework would protect sensitive customer data and allow consumers to access, change, delete, or refuse to share their information.

Potential Effects on Gambling Operators

While the draft legislation doesn't specifically mention gambling operators, it is likely that APRA would impact them. The proposal applies to large data holders, defined as companies that handle the sensitive data of over 200,000 individuals or have more than $250 million in annual revenue, or those that handle data for over 5 million people.

This means large betting operators in the US, such as FanDuel, DraftKings, and BetMGM, might be affected by the proposal. The full impact on the sector and potential changes to gambling operators’ data policies are still uncertain.

Under APRA, the responsibility shifts from consumers to the companies collecting customer data. Affected companies would be allowed to use personal data for limited purposes, with restrictions on disclosing information to third parties, sometimes requiring additional consumer approval.

Currently, it is too early to determine the broader impact of the proposal on the gambling industry in the country.

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