Crafting a model for iGaming legislation in the U.S. is no small feat, but it’s precisely the challenge a group of lawmakers at the National Council of Legislators from Gaming States (NCLGS) has taken on. Their recent proposal outlines a roadmap to legalize and regulate iGaming in a way that prioritizes responsible gaming, taxation, and consumer protection. With the iGaming market already thriving in seven states, including Pennsylvania and Michigan, the push for standardized legislation is timely. However, success depends on gaining traction among lawmakers in states that remain hesitant.
One element gaining attention is how the industry is working to create safer and more transparent environments for players. For example, some regulated offshore platforms feature no wagering casino options, which simplify the gaming process by removing the need for players to fund their accounts first, and are helping to build trust among consumers. This model aligns with the proposal’s broader goals of fostering responsible gaming practices and ensuring fair opportunities for participants. By incorporating such measures, lawmakers aim to encourage sustainable growth while addressing potential concerns around player protection.
Another innovative feature of the proposal is the emphasis on interstate collaboration. By suggesting reciprocity agreements, lawmakers hope to create an interconnected network of states that can offer shared iGaming opportunities. This idea could expand options for both operators and players, potentially transforming the market. However, political and regulatory differences across states pose significant hurdles, leaving the outcome uncertain.
The draft also highlights the importance of technology in advancing responsible gaming. From AI tools designed to monitor player behavior to voluntary exclusion lists, the proposal aims to ensure a safer experience for all participants. Additionally, measures like deposit caps and restrictions on credit card funding reflect a commitment to consumer protection without stifling industry innovation.
In 2024, no new U.S. state legalized iGaming, reflecting the complexity of gaining legislative consensus. As former Michigan state representative Brandt Iden (who has shared his sentiments on the difficulty of passing legislation for online casinos) noted during a recent panel, “It’s not just about potential revenue—it’s about educating stakeholders on the long-term benefits of legalization.” The proposal seeks to address these concerns by presenting a framework that balances revenue generation with consumer safety, making it more attractive to hesitant lawmakers.
Another notable aspect of the NCLGS proposal is its clear stance on regulating internet cafes, a long-standing gray area in the gaming industry. By defining such establishments as places offering computer terminals primarily for accessing unauthorized internet games, the legislation seeks to close loopholes that have allowed unregulated gaming to thrive.
The inclusion of strict penalties for operators of these venues, including fines and potential prison time for repeat offenders, demonstrates a commitment to maintaining fair competition. This proactive approach underscores the lawmakers’ intent to address unregulated activities, ensuring the iGaming landscape remains transparent and compliant with state laws.
As the December 31 deadline for public comments approaches, the NCLGS model legislation stands as a potential turning point for U.S. iGaming. While not without its flaws, the draft provides a foundation for states to build upon, aligning economic opportunity with consumer trust. If lawmakers can capitalize on the proposal’s strengths, the coming years could see a broader acceptance of iGaming across the U.S., benefiting operators, regulators, and players alike.
