The draft model online gaming legislation published by the National Council of Legislators from Gaming States (NCLGS) suggests a notable revamp in the way states look to protect players.
As well as recommending significant benchmarks for iGaming in the U.S. including a tax rate of 15-25% and fast-tracked approval for existing sports betting licensees, the NCLGS’ ideal legislative framework put forth a range of player protection measures.
One of the measures the legislators propose is that state lawmakers mandate the creation of a player health program to increase public awareness of problem gambling, promote responsible gaming and provide services for problem gambling prevention, treatment and recovery services.
Under the NCLGS’ proposal, state player health programs would be developed and administered by each state’s regulatory body and may encompass duties such as:
- Developing and implementing problem gambling public awareness campaigns
- Developing and implementing treatment programs for individuals with gambling addictions or disorders
- Coordinating with other states to gather information and implement best practices
- Contracting with public or private entities to assist with implementing the public health program
- Consulting with national and state entities dedicated to responsible and problem gambling in developing best practices
NCLGS does not approve of credit card payments
One notable provision in the draft model legislation concerned payment methods.
Without stating directly that all credit cards payments would be prohibited, the NCLGS made it clear that it does not approve of operators allowing players to use credit cards to deposit into or withdraw from their accounts.
The council suggested that iGaming providers may permit patrons to use online and mobile money transfer systems, debit cards, digital wallets, prepaid cards, wire transfers, cash or other form approved by the regulatory authority. However, the model framework specifies that it recommends that any digital wallets or prepaid cards should not be funded or bought via credit card.
Other responsible gambling measures outlined in the NCLGS draft address a range of issues that have been top of mind in the industry in 2024, including betting’s interaction with the college-aged demographic, gambling advertising and more. Other specific recommendations include:
- Limiting total deposits by an individual over a 24-hour period to $20,000
- Requiring each iGaming operator to identify a responsible gaming lead to collaborate with the regulator
- Prohibiting use of “risk-free” language in advertising
- Not permitting advertising on college campuses
- Requiring iGaming operators to provide all transactional data conducted in the state to any college or university located in the state that requests such information, excluding any personally identifiable information.
NCLGS wants industry’s feedback
The council has opened up the draft for public comment, intending to help prepare state lawmakers to introduce and sponsor online gambling bills by offering a framework that can be tailored to specific state conditions and requirements and support existing gaming infrastructure in a state.
NCLGS noted that the model legislation is built around several “fundamental principles,” including avoiding cannibalization of retail gaming, enforcing strict regulation, ensuring stiff player protection and security safeguards and avoiding infringing on state online lottery operations and tribal gaming.
The committee that developed the model legislation included NCLGS chair and founder Steven A. Geller, NCLGS President Shawn Fluharty, and legislators from states including New Hampshire, Michigan, Pennsylvania, Massachusetts and Washington.
Legislators and stakeholders will discuss the model in December at the NCLGS winter meeting in New Orleans, and a vote is expected in early 2025 after a comment period.
