The senators first stated their support for federal sports betting intervention in August and, on Wednesday, proposed a bill that would regulate wagering across the US.
The Sports Wagering Market Integrity Act would have the US Justice Department set minimum standards for states when offering sports betting.
However, Sara Slane, AGA Senior Vice President of Public Affairs, believes the bill is "a solution in search of a problem."
She said in a statement: "This bill is the epitome of a solution in search of a problem, representing an unprecedented and inappropriate expansion of federal involvement in the gaming industry, which is currently one of the most strictly regulated in the country."
Meanwhile, consumer group CASE insists the bill is "entirely unnecessary" and will do more harm than good.
Its statement read: "The legislation proposed today by Sen. Hatch and Schumer is more Washington overkill and entirely unnecessary.
"By preemptively forcing heavy-handed rules onto the gaming industry before the market is given a chance to take shape, this hasty piece of legislation risks stifling the tremendous opportunity for economic growth, job creation, and additional tax revenue that sports betting can provide to the states."
