Model Internet Gaming Act Sparks Debate at NCLGS Conference

At the National Council of Legislators from Gaming States (NCLGS) conference in New Orleans, the Model Internet Gaming Act took center stage, with industry stakeholders and legislators discussing the merits and challenges of the proposed legislation. The draft legislation, aimed at guiding states interested in legalizing online casinos, has been in the works for nearly a year. While many from the gaming industry praised the efforts, some raised concerns about its practical implementation.

 

The Delegations

Shawn Fluharty, President of NCLGS and a West Virginia delegate, emphasized the importance of the model bill in bridging the knowledge gap between legislators and the rapidly growing online gaming industry. Fluharty noted that the legislation would serve as a crucial resource, simplifying the complex nature of iGaming for state lawmakers. He stressed that education around the issue is key to advancing legislative efforts, especially in states where online gaming has yet to be legalized. Steve Geller, the founder of NCLGS, reiterated that the organization does not advocate for iGaming itself but rather provides states with a well-researched template should they choose to pursue it. He acknowledged that the model bill is a work in progress, with public comment open until the end of the year, and further revisions expected after feedback is incorporated.

Several representatives from the gaming industry offered their suggestions for refining the draft legislation. David Rebuck, the former director of the New Jersey Division of Gaming Enforcement, criticized certain provisions in the model bill, particularly the proposed ban on credit cards and a blanket limit on betting amounts. He argued that both of these measures lacked sufficient evidence and could hinder the bill's effectiveness. Rebuck also highlighted the importance of regulating affiliates in the online gaming space, calling for clearer definitions in the draft. New Hampshire Senator Tim Lang, who participated in the model committee, expressed concern that allowing credit cards for iGaming would be politically unfeasible in many states.

He argued that such a provision would derail efforts to pass the bill, particularly in states where legislators are wary of approving credit card usage for online gambling. Other industry voices, including Brad Fischer from the Sports Betting Alliance, acknowledged the complexity of the issue but praised the committee for its work. Fischer noted that the model bill was a significant step forward in creating a framework that could realistically be enacted in 2025.

Several other industry figures sought clarifications on specific provisions in the draft. Charmaine Hogan from Playtech suggested that the definition of “live studio” should include both in-state and out-of-state studios to facilitate broader streaming options. Andrew Winchell from BETR raised concerns about the definition of iGaming and how it might overlap with other forms of regulated online gaming, such as sports betting and daily fantasy sports.

Looking ahead, Geller outlined the timeline for finalizing the Model Internet Gaming Act. A meeting of the NCLGS legislative committee in mid-January will allow lawmakers to propose amendments based on the public comments received. By the end of January, a final version of the bill will be sent to legislators, providing them with a starting point for iGaming bills in the 2025 legislative session.

 

We really put together a good product that I believe in… this is a complex issue… and I think that’s a huge issue for this industry moving forward.

 

Conclusions

However, the final ratification of the model bill will not occur until NCLGS’s biannual meeting in July 2025. Geller emphasized that this process has been more extensive than any previous model bill initiative, underscoring the effort to ensure fairness and transparency in the drafting process.

The Model Internet Gaming Act represents a significant milestone in the effort to standardize online casino regulations across U.S. states. While industry representatives offered constructive feedback, the bill’s passage remains a complex and evolving process. With continued input and adjustments, the model bill aims to provide a useful framework for states looking to legalize online gaming and navigate its inherent challenges. Ultimately, it could play a pivotal role in shaping the future of iGaming in the United States.