Lawmakers in Arkansas have introduced a pair of bipartisan bills that would establish a legal framework for online casino gaming, as well as classifying the operation of unlicensed online gambling as a felony offense.
Unlicensed gambling would include sweepstakes, crypto casinos and any other non-traditional means of wagering.
Representative Matt Duffield and Senator Dave Wallace sponsor House Bill 1861 and Senate Bill 524, respectively. A total of 14 legislators are co-sponsors of the bills.
What the Interactive Gaming Act Would Mean for Licensed Casinos
Should the bills be passed, Arkansas’s three licensed casinos—Saracen Casino Resort, Oaklawn Racing Casino Resort, and Southland Casino Hotel—will each be permitted to launch branded iGaming platforms. The Arkansas Racing Commission would regulate and enforce the new legal framework.
Section 2 of HB 1861 would create the “Interactive Gaming Act”. As defined in the bill: “Interactive gaming includes the placing of wagers through a server-based gaming system… using a computer network… through which a casino licensee may offer authorized interactive games to a person who has established an interactive gaming account.”
Each casino licensee will be limited to one branded iGaming system, and the platforms are permitted to be accessed either through mobile applications or a traditional Internet browser.
The bill prohibits revenue-sharing agreements that are dominated by third-party vendors, stating: “The operation of interactive gaming is prohibited… in which a majority of the net casino gaming receipts from interactive gaming is paid to a third-party vendor.”
HB 1861 also adds felony penalties for those operating online casinos illegally. It includes online sweepstakes casinos, making it clear: “Make available or participate in keeping, conducting, or operating any game, contest, or promotion… that utilizes a dual-currency system of payment… and simulates: (i) Casino-style gaming; (ii) Lottery games; (iii) Sports wagering.”
“The operation of an interactive gaming system without a casino license in this state is prohibited,” the bill adds.
Why Arkansas Lawmakers Are Calling This an Emergency
The legislation interestingly includes an emergency clause, which would mean immediate enactment. Legislators argue that the emergency is caused by the proliferation of illegal gambling in the state.
“Unlicensed, unregulated, and untaxed casino-style and sports wagering offerings are an ever-growing threat to the citizens of Arkansas,” the legislature reads.
It further states: “This act is immediately necessary to ensure that institutions of higher education and their affiliated nonprofit organizations can financially support their student-athletes and athletic programs.”
Governor Sarah Huckabee Sanders would not be strictly required to sign off on the new regulations in order for them to become effective. Should they be approved by both chambers, either bill would come into force if the governor did not veto it within a certain period of time or if the veto “was overridden.”
The bills have been referred to the committee, and lawmakers hope to see progress before the legislative session ends on 11 April 2025.
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