News from Arkansas — Could Online Casinos Be Legalized There?

Lawmakers in Arkansas have taken a significant step toward legalizing online casinos by introducing two bipartisan bills — SB524 and HB1861. These initiatives, supported by 14 legislators led by Senator Dave Wallace and Representative Matt Duffield, also aim to ban illegal lottery sweepstakes known as sweepstakes. Could this be a breakthrough for the gambling industry in the state?
Who Will Be Able to Operate Online Casinos?
The bills allow Arkansas’s three licensed casinos — Saracen Casino Resort, Oaklawn Racing Casino Resort, and Southland Casino Hotel — to launch online casino gaming. These establishments already hold licenses for online sports betting, and now they will be able to obtain an additional license for interactive gaming. The Arkansas Racing Commission will oversee regulation, although tax rates and licensing fees have not yet been specified in the documents. Interestingly, Saracen Casino Resort had already approached the commission last year with a request to allow iGaming, so this could be a logical next step for them.
What Will Happen to Sweepstakes?
A separate section of the bills is dedicated to combating illegal online lotteries, particularly so-called sweepstakes. For those unfamiliar with the term, sweepstakes are games or contests that use a dual-currency system, where players exchange currency for prizes, cash, or chances to win. Licensed casinos will be permitted to conduct such games within the legal framework, but unregistered sweepstakes will be banned. Social games without cash payouts will remain exempt from the prohibition. However, operating illegal online casinos or sportsbooks will become a criminal offense, signaling a tough stance on unregulated operators.
Why Is This Urgent? Economic and Educational Benefits
The authors of the initiatives emphasize that these changes are “immediately necessary,” as unregulated gambling poses an ever-growing threat to Arkansas citizens. Legalizing online gaming, in their view, will contribute to the state’s economic development and support higher education institutions. Specifically, funds from regulation could be used to finance student-athletes and athletic programs, which will “strengthen economic development, education, and commerce in Arkansas,” as stated in the text of the bills.
How Soon Will the Law Take Effect?
A distinctive feature of these proposals is the emergency clause, which allows them to take effect immediately upon passage, without waiting for approval from Governor Sarah Huckabee Sanders. If the governor does not veto the bills within a certain period, or if a veto is overridden, the law will automatically come into force. The bills have been referred to the relevant committees, and the Arkansas legislative session is set to conclude on April 11. Will lawmakers manage to pass these changes before the session ends? Who knows.
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