While online casino gambling has not seen the legalization wave sports betting has, legislators are hoping to change that with new model legislation.
The National Council of Legislators from Gaming States unveiled its model online casino legislation ahead of its winter meeting in December. NCLGS promised the proposal earlier this year.
A public hearing will happen at the meeting in New Orleans, with a public comment period open until Dec. 31.
“The objectives of this model legislation are to establish an effective, comprehensive, and efficient regulatory framework consistent with public policy that will foster public confidence and trust in the integrity of the regulatory process and the fairness of internet gaming operations,” the NCLGS said in the draft. “The regulatory provisions are intended to extend strict regulation and oversight over all aspects of internet gaming operations.”
Main online casino considerations
In developing the model legislation, NCLGS looked to ensure it “(complements) and does not adversely impact” brick-and-mortar casinos and racinos. It also focuses on policies that would increase public confidence in the industry and reduce illegal gambling.
The model also highlights the importance of anti-money laundering and know-your-customer controls and procedures. Responsible gambling is also a key focus.
It recommends a tax rate of between 15% and 25%.
Sweepstakes prohibited
The gambling industry is concerned with the proliferation of sweepstakes operators across the US. NCLGS’ model legislation would ban sweepstakes operators.
It proposes a fine of between $10,000 and $100,000 for each violation of the rules in the sweepstakes section.
How it was put together
NCLGS put together a committee for the model legislation that included NCLGS founder Steve Geller, NCLGS President Shawn Fluharty and legislators from states like Michigan, Pennsylvania and Massachusetts. Fluharty is a representative from West Virginia, where online casinos are legal.
Spectrum Gaming Group, Bose McKinney, Taft Law Firm, Cooper Levenson, and the Massachusetts Council on Gaming and Health also provided input.
There are also provisions to resolve issues between online casino laws in the seven existing US markets, including Michigan and Pennsylvania.
