NCLGS Publishes Draft Model iGaming Legislation
The draft aims to establish an effective, comprehensive, and efficient set of policies for legislators, regulators, and stakeholders.
The National Council of Legislators from Gaming States (NCLGS) has published a draft of its Model Internet Gaming Act, providing a regulatory framework for US states considering the legalization of online gaming. The draft aims to establish an effective, comprehensive, and efficient set of policies for legislators, regulators, and stakeholders.
Key Provisions of the Draft Legislation
The NCLGS states that the framework is designed to “foster public confidence and trust in the integrity of the regulatory process and the fairness of internet gaming operations.” It includes strict oversight for all aspects of internet gaming, emphasizing responsible practices.
Highlights of the draft legislation include:
- Tax Rates: Recommends a tax rate of 15–25%, reflecting a national average of 19%.
- Deposit Limits: Caps total deposits at $20,000 per individual over a 24-hour period.
- Prohibited Activities: Outlaws online sweepstakes games, with penalties ranging from $10,000 to $100,000 per violation, potential loss of gaming licenses, and imprisonment for repeat offenders.
- Payment Options: Permits deposits and withdrawals via debit cards, digital wallets, bank wires, and cash at approved retail locations, but prohibits credit card use.
- Responsible Gaming: Requires each operator to appoint a Responsible Gaming Lead to support at-risk players and provide resources.
- Marketing Restrictions: Prohibits the use of characters, performers, or influencers primarily appealing to audiences under 21 years old.
Respect for Tribal Gaming and State-Specific Needs
The NCLGS clarified that the framework does not intend to regulate tribal gaming, which remains governed by the Indian Gaming Regulatory Act and state compacts.
"In crafting this document, we fully realize that each state has a unique gaming sector with disparate interests and concerns," the NCLGS noted.
"Nonetheless, we believe the regulatory framework set forth herein may be a useful tool for consideration as states embrace the vast potential of internet gaming."
Public Comment Period Open Until December 31
The draft legislation is open for public comment until the end of the year, inviting input from all stakeholders.
Tim Miller, UK Gambling Commission executive director, praised the effort, stating on LinkedIn:
“Great to see National Council of Legislators from Gaming States publish their model iGaming legislation for public comment. I’ve been delighted to share the UK’s experiences of regulating the online market to help shape this important piece of work.”
With the draft now available, NCLGS aims to provide states with a resource to guide their efforts in establishing responsible, regulated online gaming markets.
