U.S. legislators propose model online gaming law with measures to boost player protection

The National Council of Legislators from Gaming States (NCLGS) has unveiled a draft model for online gaming legislation aimed at reshaping how states regulate iGaming and protect players. The proposal includes comprehensive measures to address player safety, responsible gaming practices, and industry oversight.  

Released as a framework for state lawmakers, the draft legislation recommends key benchmarks such as a tax rate of 15-25% and expedited licensing for existing sports betting operators.

A notable element of the proposal focuses on player protection, with mandates for creating state-run player health programs. These programs are intended to raise awareness about problem gambling, encourage responsible gaming, and provide treatment and recovery services.  

According to the draft, regulatory bodies in each state would manage these programs, implementing public awareness campaigns, coordinating with national entities to adopt best practices, and contracting public or private organizations to execute their initiatives.  

The council also addressed concerns over payment methods in iGaming. While not explicitly banning credit card use, the framework discourages operators from allowing credit card transactions for deposits or withdrawals. Alternatives such as debit cards, digital wallets, and prepaid cards would be permitted, provided they are not funded through credit cards.  

Responsible gambling measures extend to limiting player deposits to $20,000 per day, requiring operators to appoint a responsible gaming lead, and banning the use of "risk-free" language in advertising. Further restrictions include prohibiting advertising on college campuses and mandating operators to share transactional data with colleges and universities upon request, excluding personally identifiable information.  

The NCLGS framework also emphasizes avoiding competition with state-run lotteries and tribal gaming, ensuring strict regulations, and safeguarding player security.  

The draft legislation is open for public comment, allowing stakeholders to provide feedback before a final vote, expected in early 2025. Legislators, including NCLGS Chair Steven A. Geller and President Shawn Fluharty, along with representatives from states like Michigan, Pennsylvania, and Washington, will discuss the framework at the NCLGS winter meeting in December in New Orleans.