【stake promo】Arkansas bill filed to allow licensed online casinos

If approved,stake promo the bill would simultaneously criminalise the operation of unlicensed online gambling platforms in the state.

The measure, filed as House Bill 1861 (HB 1861) on Wednesday (19 March), reflects a coordinated response by lawmakers and licensed casino operators to the growing presence of unregulated offshore gambling websites.

Rep. Matt Duffield and Sen. Dave Wallace sponsored the bill, which has since attracted support from both sides of the aisle. Among its supporters are Senate president pro tempore, Bart Hester, and Reps. Ken Ferguson and Glenn Barnes.

The next stop for HB 1861 is the House Judiciary Committee; however, it likely won’t be discussed until lawmakers return from their spring break in April. A Senate companion bill was withdrawn shortly after filing.

HB 1861 would extend the scope of mobile gaming to include online versions of traditional casino games, such as blackjack, roulette, and craps.

These games could be offered via mobile apps operated by the three licensed casinos in Arkansas: Oaklawn Racing Casino Resort, Saracen Casino Resort and Southland Casino Resort.

Although all three casinos currently operate sports betting apps, those platforms do not presently support online casino games.

In addition to legalising online casino gaming for licensed operators, the bill proposes that interactive games and promotional drawings could be used to support name, image, and likeness (NIL) collectives affiliated with Arkansas universities.

These collectives provide financial compensation to student athletes.

Such gaming and drawing promotions would be subject to the approval of the Arkansas Racing Commission, the regulatory body responsible for overseeing casino and sports betting operations in the state.

Unlicensed gambling sites still control the market

The effort to introduce online casino gambling comes amid growing concern about the widespread use of offshore and unlicensed gambling platforms.

Carlton Saffa, chief market officer for Saracen Casino, described the bill as a defensive measure to counteract what he characterised as the unchecked presence of illegal online operators.

In March 2023, Saracen submitted a proposal to the Arkansas Racing Commission recommending a rule change to permit limited forms of iGaming, with the goal of displacing unregulated competition.

Saffa warned that these offshore platforms pose significant risks to consumers and fail to contribute any tax revenue to the state.

He noted that many of the entities operating such platforms are based overseas, some with ties to China.

These websites often offer a full suite of gambling products, including slot machines, table games, and other interactive formats, which are accessible to Arkansas residents despite being outside the jurisdiction of US regulators.

The legislation is also part of a broader trend across several US states to regulate or prohibit illegal and unlicensed online gambling.

In early 2024, Michigan issued cease-and-desist letters to nine online operators offering games such as online slots and roulette without proper state licensing.

Similarly, Mississippi recently enacted a law making it a felony to operate an illegal online gambling site.

In Arkansas, advocacy groups have underscored the urgency of addressing the issue amid a rise in the use of unlicensed gambling platforms in the state.

Illegal gambling to become a felony

Although such platforms may not be explicitly illegal in the jurisdictions where they are hosted, they are not licensed or taxed within Arkansas and are not subject to consumer protection regulations.

This lack of oversight presents a significant challenge for addressing problem gambling and ensuring accountability in the market.

Under HB 1861, operating an unlicensed online casino or sportsbook in Arkansas would be classified as a felony offence.

The bill would make it unequivocally clear that only the three state-licensed casinos have the legal authority to offer online gaming services to Arkansas residents.

The measure seeks to protect consumers, preserve state revenue, and reinforce the regulatory framework established by Amendment 100, which was approved by voters in 2018 to legalise casino gaming and sports betting in the state.

While the fourth casino licence authorised under Amendment 100 was originally intended for Pope County, it has not been awarded and is now considered unlikely to be granted amid a years-long battle over control of the licence.

As a result, the three existing casinos remain the only eligible operators under the current framework, and the bill aims to solidify their exclusive rights to expand into online gaming.

While the proposal appears to have garnered substantial political support, sweepstakes trade body the Social and Promotional Games Association (SPGA) opposes the bill.

In a statement shared with NEXT.io, the group said the legislation echos “anti-competitive efforts pushed by entrenched casino interests and represent a significant threat to businesses, innovation, and a consumer’s freedom to choose what games they can play on their phones.”