Arkansas lawmakers propose online casino legalization and crackdown on illegal operators

A bipartisan group of Arkansas legislators has introduced a bill that would legalize online casino gaming statewide for the state’s three licensed casinos, while simultaneously making it a felony to operate unlicensed gambling platforms in the state.

Filed Wednesday, House Bill 1861 is sponsored by Rep. Matt Duffield (R-Russellville) and Sen. Dave Wallace (R-Leachville), with 20 additional co-sponsors, including Senate President Pro Tem Bart Hester (R-Cave Springs) and several Democratic lawmakers. The proposal has been referred to the House Judiciary Committee and is expected to be heard when the Legislature reconvenes in April.

The bill, which includes an emergency clause allowing for immediate enactment if passed and signed by the governor, aims to clarify the legal landscape for online gambling in Arkansas.

If enacted, the state’s three licensed casinos, Saracen Casino Resort in Pine Bluff, Oaklawn Racing Casino Resort in Hot Springs, and Southland Casino Resort in West Memphis, would be authorized to offer online casino games such as blackjack, roulette, and slots through their existing sports betting apps.

The proposal would also allow these casinos to host online drawings benefiting university name, image, and likeness (NIL) collectives, subject to approval by the Arkansas Racing Commission. The same regulatory body would oversee all forms of interactive gaming under the new law.

The legislation follows the expansion of mobile sports betting in Arkansas in 2022 and is largely seen as a move to counter the growing influence of offshore gambling sites that operate without state oversight.

Carlton Saffa, chief market officer at Saracen Casino, described these offshore operators as “unregulated and untaxed,” alleging that many are based overseas and pose risks to Arkansas consumers.

“These games are operated by shadowy offshore entities, many with links to China,” Saffa said. “We have an obligation to the citizens of Arkansas to best manage this risk, and the risk is best managed by making sure legitimate licensed actors are the only ones doing it.”

HB 1861 would make it a felony to operate illegal gambling platforms in the state, bringing Arkansas in line with recent measures taken by other states, such as Mississippi and Michigan, to crack down on unlicensed online gaming.

Vena Schexnayder, Executive Director of the Arkansas Problem Gambling Council, told Arkansas Times that younger adults have increasingly turned to unregulated “sweepstakes” casinos. She noted that roughly half of her recent support calls have been related to these offshore platforms, which exist in a legal gray area due to their location outside U.S. jurisdiction.

The bill would allow local casinos to offer online games under the same rules that currently apply to their physical operations. While Saracen supports the move, Oaklawn Racing Casino Resort has publicly opposed the legalization of online casino games. Oaklawn’s general manager Wayne Smith reiterated the casino’s stance last month: “We believe iGaming is bad public policy, plain and simple.”

An identical Senate version of the bill was withdrawn Thursday. Still, its sponsors indicated that HB 1861 remains the primary vehicle for advancing online gaming legislation this session.

Should the bill pass, Arkansas would join eight other U.S. states where online casino gaming is currently legal. The legislation comes just days after Governor Sarah Sanders signed a separate bill permitting state universities to conduct sports raffles for NIL funding, although it falls under a different regulatory authority.