During a public hearing on the new model igaming legislation introduced by the National Council of Legislators from Gaming States (NCLGS) most of the feedback was positive but there were a couple of issues that proved controversial. Most notably, the prohibition of credit card deposits drew criticism.
Former regulator says no evidence credit card bans work
Former Director of the New Jersey Division of Gaming Enforcement David Rebuck was the most vocal critic. He was part of the group that consulted on the draft and helped develop language, but he made public his disagreement with that particular component of the bill.
“A one size fits all, maximum amount of money that can be wagered is not supported by evidence today. The ban on credit cards is also not supported by evidence and research today,” Rebuck noted. He also observed that the current draft of the legislation lacks definitions and licensing requirements for affiliates, which he believes is necessary for the industry.
Several states with regulated sports betting and online casinos, including New Jersey, allow for credit card deposits. A legislative effort to put a ban on credit card deposits in Pennsylvania went nowhere.
NH lawmaker calls credit cards ‘political suicide’
Even though most states allowed for credit card deposits with sports betting, at least one lawmaker in the room said the presence of credit cards would be “political suicide”.
New Hampshire Sen. Tim Lang served on the model legislation committee and attempted to pass a bill legalizing igaming earlier this year. In his own words, he was “brutalized” in committee, mostly by brick and mortars in the state concerned about cannibalization.
“If I was to allow credit cards the bill will be die on the spot. It wouldn’t go any further at all,” he argued. “So while data may suggest otherwise, if the legislators in the room will want to get elected again, and want the actual bill passed…you put credit cards in and that will get your bill killed in most states.”
NCLGS President and West Virginia Delegate Shawn Fluharty echoed Lang’s sentiment that some of the language in the bill was there to optimize the chances the bill actually passes.
“This is a complex issue, and it’s complex for those in the industry that actually know it very well, and it’s super complex for legislators where there’s a major education gap. I believe putting together this type of model legislation will help close the education gap with legislators,” Fluharty observed.
“iGaming bills are not moving currently,” he added.
