US legislators craft model legislation to promote online gambling legalization

The National Council of Legislators from Gaming States (NCLGS) is developing model legislation to aid US lawmakers in passing legal online gambling bills, aiming to provide a comprehensive framework for states by 2025.

NCLGS plans to release a draft of the legislation by August 1, which will be open for public comment for 30 days before a final bill is presented in December. The proposed legislation will cover revenue generation, responsible gaming, cannibalization, advertising guidelines, licensing, age limits, and data sharing.

The draft suggests a 15%-25% tax rate, compared to the current average of 19% in seven legal US states. Online gambling revenue significantly exceeds that of digital sports betting but faces more legislative hurdles.

Stakeholders stress the importance of education for both lawmakers and the public. Maryland State Senator Ronald Watson emphasized treating legalization efforts like a campaign. "The person who introduces (legislation) is just the quarterback. In this case, you need a whole team behind you," Watson said.

Former Senator, NCLGS Founder and General Counsel Steve Geller, NCLGS President Shawn Fluharty, and Spectrum Gaming Group COO Juliann Barreto share the preliminary process for the iGaming Model Legislation Committee. Legislators on the committee were also introduced. #NCLGS pic.twitter.com/JI4aqGCncD

— NCLGS (@NCLGS) July 18, 2024

David Rebuck from the New Jersey Division of Gaming Enforcement highlighted the need for uniform technology standards and robust anti-money laundering measures. "Tech companies should be held to the same standard as gambling companies," Rebuck said.

Meanwhile, Bill Pascrell III of the Princeton Group criticized the "ridiculous rhetoric" of cannibalization, citing New Jersey's data showing no significant impact on brick-and-mortar casinos. "Online gaming doesn’t cannibalize brick-and-mortar casinos and it doesn’t hurt casino jobs," Pascrell said.

With many states running out of COVID funding, the need for new revenue sources may drive legislation forward. The NCLGS is aiming to streamline the process and provide a solid foundation for legal iGaming across the US.