National Council of Legislators From Gaming States Proposes Uniform iGaming Regs

The National Council of Legislators from Gaming States (NCLGS) has introduced a draft proposal for standardized regulations on internet gaming. Known as the Model iGaming Act, this framework is designed to guide states exploring the legalization and regulation of online gaming. The initiative aims to create a cohesive and transparent system that builds public confidence while addressing inconsistencies in existing laws across the seven states that currently allow iGaming.

Draft Legislation and Goals

The draft legislation reflects input from a broad range of stakeholders, including lawmakers, gaming industry experts, and legal advisors. It focuses on creating a regulatory structure that ensures fairness, integrity, and strict oversight of online gaming activities. NCLGS has opened the proposal for public feedback, with comments accepted until December 31.

Key elements of the proposal include:

• A five-year licensing system for iGaming operators and suppliers with strict compliance requirements.

• Suggested tax rates ranging between 15% and 25% on online gaming operations.

• Mandatory AML (anti-money laundering) measures and KYC (Know Your Customer) protocols.

Responsible Gambling and Advertising

Responsible gambling measures feature prominently in the draft, emphasizing the importance of player safety. Advertising standards are outlined to ensure promotions are directed only to audiences aged 21 and older, with restrictions on youth-oriented platforms such as college campuses.

Responsible gambling safeguards:

• Marketing materials must include messages promoting responsible gaming.

• Advertising campaigns must exclude younger demographics.

• Initiatives must highlight tools for safe play and spending control.

Sweepstakes and Enforcement

Another significant aspect of the proposal is the regulation of sweepstakes, which often operate in a legal gray area. The Model Act bans these promotions outright and introduces penalties to deter violations.

Penalties outlined in the act:

• Fines between $10,000 and $100,000 per violation.

• Repeat offenders facing potential imprisonment of up to two years.

• Strict enforcement to separate legitimate gaming from illegal activities.

Leadership and Expert Guidance

The NCLGS committee behind the draft includes prominent lawmakers such as chair Steven A. Geller and president Shawn Fluharty, alongside representatives from states like New Hampshire, Pennsylvania, and Michigan. Expert guidance was provided by organizations including Spectrum Gaming Group, Bose McKinney, and the Massachusetts Council on Gaming and Health.

Conclusion

By addressing taxation, compliance, responsible gaming, and advertising, the NCLGS Model iGaming Act seeks to provide a balanced and transparent framework for states considering iGaming. If adopted, the act could unify online gaming regulations nationwide, ensuring fairness for players while supporting sustainable revenue growth for states.