Legislators Discuss Online Casino Model At NCLGS

The National Council of Legislators from Gaming States (NCLGS) had a discussion about the Model Internet Gaming Act as part of their conference.

The Model Internet Gaming Act is the culmination of 10 months worth of research about various tenets that needed to be addressed by various states that want to regulate igaming and real money online casinos within their respective territories.

West Virginia Delegate Shawn Fluharty, the NCLGS President, noted that the working Model Internet Gaming Act draft is turning out to be a good one, and that lawmakers from respective states as well as industry experts should weigh in on this document since the subject matter is a complex one,

“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,” Fluharty adds.

What is NCLGS’ Goal for Drafting the Model Internet Gaming Act?

Legislators worked together with people from the gaming industry, who mostly lauded the development of the draft, but also made suggestions for improvements. Steve Geller, founder of NCLGS, noted that the organization spent more time and did more outreach on the iGaming model legislation than any prior initiatives.

That said, Geller reminded that NCLGS does not have a position on whether a state should pursue online casino legislation. The NCLGS’ goal is to provide a resource for states that want to legalize online casinos and igaming.

“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… 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,” Geller added.

Suggestions Given by Industry Experts and Representatives

Apart from various state legislators, the conference held by the NCLGS had some experts in the igaming and online casino industry weigh in on the current state of the Model Internet Gaming Act.

Former Director of the New Jersey Division of Gaming Enforcement David Rebuck suggested that several parts of the model weren’t supported by research such as prohibiting the use of credit cards,

“A one-size-fits-all maximum amount of money that can be wagered does not work… 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,” Rebuck noted.

Meanwhile, New Hampshire Senator Tim Lang, who served on the iGaming model committee, responded that allowing credit cards won’t work for legislators who want to get reelected,

“At least in New Hampshire, if I were to allow credit cards for iGaming, it would die on the spot… 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.”

Brad Fischer, who represents the Sports Betting Alliance, applauded the group for producing something they can successfully deploy in 2025.

“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,” Fischer added.

Representatives from the iGaming companies and the best online casinos also asked for some clarifications for some terms used in the Online Casino Model Act. 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.

Timetable for the Model Internet Gaming Act

Next January, a NCLGS committee made up only of legislators will meet sometime in the middle of the month. During the committee meeting, lawmakers can propose amendments based on the suggestions received during the public comment period.

The NCLGS will then produce a final version of the Model Internet Gaming Act to send out to all legislators by the end of January. This timetable will give legislators time to use suggestions from the model in iGaming bills they file for 2025. 

Fluharty is hopeful that the committee meetings will smooth out 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. This means that the Model Internet Gaming Act will officially be ratified at 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.”