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The National Council of Legislators from Gaming States (NCLGS) has released a draft of its Model Internet Gaming Act, presenting a regulatory framework aimed at assisting U.S. states in the process of legalizing online gaming.
The draft seeks to establish comprehensive, effective, and efficient policies tailored for legislators, regulators, and stakeholders to promote a trustworthy and fair internet gaming environment.
Framework Designed to Build Trust and Oversight
According to the NCLGS, the draft is crafted to “foster public confidence and trust in the integrity of the regulatory process and the fairness of internet gaming operations.” It emphasizes strict oversight and responsible gaming practices across all aspects of online gaming operations.
Key Features of the Proposed Legislation
The draft outlines several critical provisions intended to create a robust regulatory framework:
Tax Rates
The proposal suggests a tax rate between 15% and 25%, aligning with the national average of 19%.
Deposit Limits
To protect against excessive gambling, the legislation caps individual deposits at $20,000 over a 24-hour period.
Prohibited Activities
Online sweepstakes games are explicitly banned, with penalties for violations ranging from $10,000 to $100,000. Repeat offenders may face license revocations and potential imprisonment.
Payment Options
Acceptable methods for deposits and withdrawals include debit cards, digital wallets, bank transfers, and cash deposits at approved retail locations. The use of credit cards for transactions is prohibited.
Responsible Gaming
Every licensed operator is required to designate a Responsible Gaming Lead, tasked with supporting at-risk players and offering resources for help.
Marketing Restrictions
The legislation forbids the use of characters, performers, or influencers who primarily appeal to individuals under 21 years old in advertising campaigns.
Tribal Gaming and State Flexibility
The NCLGS underscores that the draft framework is not intended to regulate tribal gaming, which remains under the governance of the Indian Gaming Regulatory Act and specific state compacts.
"In crafting this document, we fully realize that each state has a unique gaming sector with disparate interests and concerns," the NCLGS stated. "Nonetheless, we believe the regulatory framework set forth herein may be a useful tool for consideration as states embrace the vast potential of internet gaming."
Public Input Welcomed Until December 31
The NCLGS has opened the draft for public comment, inviting feedback from all stakeholders until the end of the year.
Tim Miller, the executive director of the U.K. Gambling Commission, commended the initiative on LinkedIn: “Great to see National Council of Legislators from Gaming States publish their model iGaming legislation for public comment. I’ve been delighted to share the UK’s experiences of regulating the online market to help shape this important piece of work.”
With the release of this draft, the NCLGS aims to provide states with a comprehensive resource to guide the establishment of responsible and well-regulated online gaming markets.
By fLEXI tEAM
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