NCLGS Seeks Public Input on Proposed iGaming Bill

Close to 40 US states currently offer legal sports betting. With the activity available in a mobile and retail form in most states, its expansion became a fact after PASPA was struck down some six years ago. While sports betting has expanded exponentially since, the same cannot be said about online gambling.

Currently, only seven US states offer legal online gambling and unlike sports betting, the expansion of the activity hasn’t picked up much speed over the years. Recently, the National Council of Legislators From Gaming States (NCLGS) announced the release of a draft proposal on iGaming. Titled the Modern Internet Gaming Act, the draft addressed key issues, proposed robust regulations for online gambling and is open for public comment through the end of the year.

The NCLGS Discusses Challenges Related to Online Gambling and Its Impact

The release of the iGaming draft came ahead of the Council’s 2024 Winter Meeting in New Orleans, and comes on the heels of months of discussions. Last week, the 2024 NCLGS Winter Meeting kicked off and not unexpectedly iGaming was at the center of the discussions, as announced by Casino Reports.

Importantly, the debate focused on many key points and one of them was the cannibalization of retail casino gambling by its online counterpart. This isn’t a new fear for the casino sector, considering the availability of smartphones and easy registration with online gambling operators. Besides the potential impact on land-based casino revenue, iGaming can bring significant harm, some opponents warned during the recent discussions.

Mark Stewart, the Cordish Companies’ general counsel, who participated in the debate spoke about the social impact of online gambling. He warned that the legalization of online gambling may have “very real and severe” social cost. Stewart predicted that the iGaming legalization may create an “economic ripple effect.”

The Draft to Help Lawmakers Push the Legalization of iGaming

Shawn Fluharty, NCLGS’ president and state delegate from West Virginia, spoke about the iGaming draft proposal. “The whole goal is to put together this regulatory framework for lawmakers to take going forward in 2025 and beyond,” he explained. Addressing the concern regarding cannibalization, Fluharty acknowledged that this is unlikely going to be the case, suggesting that transition to iGaming may be standard thing in the context of the digital world.

Notably, the executive spoke about the iGaming draft’s provisions related to advertising and consumer protection. He said that per the proposal, online gambling licensees would use innovative technology and solutions to enforce age certification and monitor their platforms. “There’s so many steps to protect the consumer that it almost gets annoying,” Fluharty added.

Not unexpectedly, per the iGaming draft, operators would be prohibited from engaging in predatory marketing practices. This applies especially to customers who exhibit signs of at-risk gambling such as chasing losses.

After the end of the public comment period, planned for December 31, 2024, the NCLGS is expected to further overhaul its iGaming proposal, tweaking it based on feedback from stakeholders. It is likely that the draft legislation will reach lawmakers in different states at some point next year.