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NEW ORLEANS — The Model Internet Gaming Act took center stage at the National Council of Legislators from Gaming States conference last weekend.
Those who spent about 10 months working on the model iGaming legislation draft discussed its content. People from the gaming industry mostly lauded the efforts but also made suggestions for improvements.
“We really put together a good product that I believe in,” NCLGS President and West Virginia Del. Shawn Fluharty said. “… This is a complex issue. It’s complex for those in the industry that actually know it very well, and it’s super complex for legislators. There’s a major education gap. I believe putting together this type of model legislation will help close that education gap with legislators, and I think that’s a huge issue for this industry moving forward.”
NCLGS founder Steve Geller said the organization spent more time and did more outreach on the iGaming model legislation than any prior initiatives.
He reminded that NCLGS does not take a position on whether a state should pursue online casino legislation. It merely wants to provide a resource for states that do.
“We’ve always said, if you are going to deal with an issue, you want the best available knowledge and you want a model bill,” Geller said. “We are in the process of giving you what we think, should your state choose to have iGaming, will be a good, strong model bill that each state can work off of.”
NCLGS is accepting public comment on the US online casino model draft through the end of the year. Geller said the organization will publish written comments on the NCLGS website early in the new year.
Suggestions made by industry representatives
Some industry representatives chose to provide oral comments in New Orleans.
David Rebuck, former longtime director of the New Jersey Division of Gaming Enforcement, suggested that several parts of the model weren’t supported by research, including prohibiting the use of credit cards.
“A one-size-fits-all maximum amount of money that can be wagered does not work,” Rebuck said. “It’s not supported by evidence today. The ban on credit cards is also not supported by evidence and research today. Also, the great need to have affiliates defined in the legislation. It’s very important in the online gaming world to have them regulated and licensed.”
New Hampshire Sen. Tim Lang, who served on the iGaming model committee, responded that allowing credit cards won’t work for legislators.
“At least in New Hampshire, if I was to allow credit cards for iGaming, it would die on the spot,” Lang said. “So while data may suggest otherwise, the legislators in the room who want to get elected again and want to see an actual bill pass, putting credit cards in that will get your bill killed in most states.”
Representing the Sports Betting Alliance, Brad Fischer thanked the group for producing something they can successfully deploy in 2025.
“I want to applaud the committee,” Fischer said. “It’s a complicated set of circumstances … You want to make something that’s going to get passed, not something that’s just going to serve in the abstract.”
Charmaine Hogan from Playtech asked for the definition of live studio to include both studios inside and outside the state. This will allow the streaming of more games.
Andrew Winchell of BETR asked for clarification to ensure the broad definition of iGaming doesn’t include online gaming already regulated in a state, such as sports betting, daily fantasy sports or horse betting.
Legislators will have final draft early in session
Geller laid out the future timetable for NCLGS to complete the Model Internet Gaming Act.
A NCLGS committee made up only of legislators will meet in the middle of January. At that meeting, legislators can propose amendments based off suggestions received during the public comment period.
By the end of January, NCLGS will produce a final version of the Model Internet Gaming Act to send out to all legislators.
This will allow legislators time to use suggestions from the model in iGaming bills they file for 2025. Fluharty hopes that can help ease the complexity of the legislative process to get bills moving.
“In a bill that’s so complex like iGaming, I believe model legislation is necessary to help make that process less stressful … to make it easier for legislators to take something and build from it with a starting block that I think will help get bills introduced and moving. Right now, they’re not. I think that’s why this is going to be a great resource not only for the industry but the legislators and regulators here.”
NCLGS can only officially ratify proposals at biannual meetings. So the Model Internet Gaming Act won’t officially be ratified until its meeting in Louisville next July.
“NCLGS has previously done some model bills. We have spent far more time and done far more outreach on this one than on any model bill we have ever done,” Geller said. “I believe everyone will agree that this has been an incredibly fair, open and transparent process.”
