National Council of Legislators From Gaming States Proposes Uniform iGaming Regs

Article by : Erik Gibbs Nov 28, 2024

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The National Council of Legislators from Gaming States (NCLGS) has introduced a draft proposal for standardized regulations on internet gaming. Known as the Model iGaming Act, this framework is designed to guide states exploring the legalization and regulation of online gaming. The initiative aims to create a cohesive and transparent system that builds public confidence while addressing inconsistencies in existing laws across the seven states that currently allow iGaming.

The draft legislation reflects input from a broad range of stakeholders, including lawmakers, gaming industry experts, and legal advisors. It focuses on creating a regulatory structure that ensures fairness, integrity, and strict oversight of online gaming activities. NCLGS has opened the proposal for public feedback, with comments accepted until December 31.

One of the key elements of the proposal is the licensing system for iGaming operators and suppliers. Licenses would be issued for five years, accompanied by robust compliance requirements.

The legislation also prioritizes revenue generation for states, setting a suggested tax rate between 15% and 25% on online gaming operations. To enhance accountability, the act mandates anti-money laundering (AML) measures and Know Your Customer (KYC) protocols to prevent fraudulent activities.

Responsible gambling measures feature prominently in the draft, emphasizing the importance of player safety. Advertising standards are outlined to ensure that promotions are aimed at audiences aged 21 and older, avoiding platforms that cater to younger demographics or college campuses. Marketing materials are also required to include messages promoting responsible gaming practices.

Another significant aspect of the proposal is the regulation of sweepstakes, which often operate in a legal gray area. The Model Act bans these promotions, imposing fines ranging from $10,000 to $100,000 per violation. Repeat offenders could face up to two years in prison, reinforcing the council’s commitment to maintaining a clear distinction between legitimate gaming activities and illegal gambling.

The NCLGS committee behind the draft includes prominent lawmakers such as chair Steven A. Geller and president Shawn Fluharty, alongside representatives from states like New Hampshire, Pennsylvania, and Michigan. Expert guidance was provided by organizatio,ns including Spectrum Gaming Group, Bose McKinney, and the Massachusetts Council on Gaming and Health.

By addressing areas such as taxation, compliance, responsible gaming, and advertising, the NCLGS model act seeks to provide a balanced approach for states considering iGaming. If adopted, it could streamline online gaming regulations nationwide, ensuring fairness for players while fostering economic benefits for participating states.