Arkansas Seeks to Legalize Online Gambling, Kill Sweepstakes

A pair of bills, SB524 and HB1861 backed by lawmakers from both major parties in Arkansas are now set to make their way through the Senate and House. The bills seek to kill sweepstakes altogether, arguing that it uses a dual-currency system which effectively amounts to a form of unregulated gambling.

Arkansas to Legalize Online Casinos, Sportsbooks at the Expense of Sweepstakes

A total of 14 lawmakers have backed the bills, with Sen. Dave Wallace and Rep. Matt Duffield taking the lead in the Senate and House filings respectively. The bills also seek to establish online gambling, as Arkansas currently has none.

Saracen Casino Resort, Oaklawn Racing Casino Resort, and Southland Casino Hotel could in theory be allowed to run online gambling products if the bills are passed and then signed into law. Arkansas has been one of the hold-out states in the country, however, not seeking to rush on the subject of Internet casinos.

The bills may kill two birds with one stone, as they could potentially see the way paved for both online casinos and sports betting online. This would allow Arkansas to quickly leapfrog other states that have been stuck with sports betting only, but for these bills to pass into law, they would also need to earn a legislative nod which would also amount to prohibiting sweepstakes in the first place.

Arkansas is not happy with the business model used by sweepstakes at all, comparing it to a “casino-style” gaming that is not regulated and continues to grow at a rapid pace. This is outlined in the bills:

“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, which will bolster economic development, education and commerce in the State of Arkansas.”

The Governor Not to Throw a Wrench in the Works

It’s interesting to note that Gov. Sarah Huckabee Sanders’ opinion will not matter as much, because the bills are phrasing in such a way as to avoid the governor’s stamp of approval in this particular case, which is one legal hurdle fewer to worry about.

Arkansas is not the only state to have attacked openly sweepstakes. Others have followed the same steps. Maryland and Mississippi are either on the cusp or have already banned this particular form of gaming.

However ,others are joining as well. Besides Arkansas, both New Jersey and New York have put forward measures seeking to limit the clout of sweepstakes gaming companies. This could be because of mounting regulatory pressure on the real money casino and betting sectors, but also an attempt to consolidate gaming options under the real money segment as well.