Lawmakers in Arkansas have filed a bipartisan proposal that would legalize online casino gaming and outlaw unlicensed sweepstakes in one move.
SB524 and HB1861, both of which are bipartisan efforts with 14 legislators attached as sponsors, were introduced on Wednesday. Sen. Dave Wallace is the lead sponsor of the Senate bill and Rep. Matt Duffield is his counterpart for the House bill.
The companion bills would allow Arkansas’ three licensed casinos — Saracen Casino Resort, Oaklawn Racing Casino Resort and Southland Casino Hotel — to operate online casino gaming. Each of those casinos already has legal online sports betting, which it operates under its own brand across the state.
Section two of the bills would implement the Interactive Gaming Act. Each casino would get one iGaming license to add to their online sportsbook license. The Arkansas Racing Commission would regulate the state’s online casino market. The legislation does not set a proposed tax rate or license fee.
Last year, Saracen Casino Resort reportedly submitted its own direct request to the commission to authorize iGaming.
Sweepstakes in the crosshairs
Like legislation filed in multiple other states this session, the new bills also address sweepstakes.
Arkansas uses similar language as other state lawmakers to define sweepstakes: Any online or mobile game, contest or promotion that “utilizes a dual-currency system of payment that allows the player to exchange the currency for a prize, award, cash or cash equivalent, or a chance to win any prize, award, cash, or cash equivalent” and simulates casino-style or lottery games or sports wagering.
But sweepstakes wouldn’t be banned entirely, as licensed casinos in the state would be allowed to offer such products under the legislation. Unlicensed sweeps or social games that don’t award cash or a cash equivalent would not be included in the prohibition.
Operation of any unregulated online casinos, sportsbooks or sweepstakes would be a felony.
Lawmakers say action is “immediately necessary”
The authors of the bills say the proposal is “immediately necessary,” and an emergency clause is included in section three.
The legislation states that the state General Assembly has determined that “unlicensed, unregulated and untaxed casino-style and sports wagering offerings are an ever-growing threat to the citizens of Arkansas.”
It also notes that legalizing and regulating online gaming can increase economic development in the state and help to support higher education institutions and affiliated nonprofits.
“This act is immediately necessary to ensure that institutions of higher education and their affiliated nonprofit organizations can financially support their student-athletes and athletic programs, which will bolster economic development, education and commerce in the State of Arkansas,” states the language. “Therefore, an emergency is declared to exist.”
Gov. Sarah Huckabee Sanders’ approval would not be strictly necessary for the bills to become effective. If approved in both chambers, either bill would come into force if the governor did not veto it within a certain period of time or if the veto was overridden, per the language of the text.
The bills have been referred to the committee stage in their respective chambers. The Arkansas legislative session is scheduled to end on April 11.
