NCLGS Draft Model Legislation of US Online Gaming

The National Council of Legislators from Gaming States (NCLGS) is spearheading efforts to shape online gaming legislation across the US.

At its winter meeting in New Orleans, the NCLGS unveiled a draft model law, offering states a flexible framework for iGaming regulation.

With benchmarks for taxation, responsible gaming, and advertising, the draft aims to streamline the development of state-specific online gaming laws.

Explore how this blueprint could transform the US gaming landscape and what it means for operators, regulators, and players.

NCLGS Drafts Blueprint for Online Gaming Legislation at Winter Meeting

Key Points

1. Flexible Framework for States: The draft model law offers a customizable blueprint for states looking to regulate online gaming.
2. Emphasis on Responsible Gaming: Standards include deposit limits, public awareness programs, and a ban on misleading advertising phrases like “risk-free.”
3. Streamlined Licensing: Fast-track approvals for existing sports betting licensees aim to simplify the regulatory process and encourage market entry.

NCLGS Draft Model Legislation Seeks to Guide States in Online Gaming Regulation

The National Council of Legislators from Gaming States (NCLGS) has unveiled a draft model law to guide US states in crafting their own online gaming regulations. Discussed during its winter meeting in New Orleans, the legislation aims to provide a flexible framework that legislators can adapt to meet their unique conditions and existing gaming infrastructures.

A Blueprint for State-Specific Regulation

With iGaming continuing to grow across the US, many states are exploring the possibility of introducing their own online gambling markets. However, the regulatory landscape is complex, requiring tailored approaches. The NCLGS draft legislation addresses this need by proposing a model framework that:

• Establishes a 15-25% tax rate on online gaming revenues.
• Offers fast-track licensing for existing sports betting operators to streamline market entry.
• Introduces standards for responsible gaming and advertising practices.

Responsible Gaming at the Core

One of the standout features of the draft is its emphasis on responsible gaming. Proposed measures include:

• Deposit limits: A cap of $20,000 in any 24-hour period to prevent excessive spending.
• Awareness programs: State regulators would oversee public campaigns to promote responsible gaming and provide resources for treatment and recovery.
• Operator responsibilities: Each operator must appoint a responsible gaming lead to coordinate efforts with state regulators.

The draft also emphasizes collaboration between states to share best practices and optimize the implementation of responsible gaming measures.

Advertising and Payment Guidelines

To curb misleading promotions, the draft proposes a ban on the term “risk-free” in advertising and prohibits iGaming ads on college campuses. Furthermore, operators must provide transactional data to colleges or universities upon request, excluding personally identifiable information.

In terms of payments, the draft explicitly discourages the use of credit cards for gambling. Instead, it recommends allowing payments through:

• Digital wallets (not funded by credit cards)
• Debit cards
• Mobile money transfers
• Prepaid cards and wire transfers

This approach prioritizes consumer protection while offering flexibility in payment options.

Preserving Traditional Gaming Operations

The NCLGS draft ensures that online gaming does not cannibalize retail gaming or infringe on state lottery and tribal gaming operations. This careful balance is vital for maintaining the integrity of existing gaming structures while fostering innovation.

Public Commentary and Future Steps

The draft legislation, developed by a diverse committee of legislators from states like New Hampshire, Michigan, and Pennsylvania, is now open for public comment. A final vote is expected in early 2025, signaling the next step in harmonizing the fragmented US iGaming landscape.

Comparative Insight: Europe’s Delayed Progress

While the US explores new frontiers in iGaming regulation, Europe faces delays. In France, plans to regulate online casinos have stalled due to objections from local mayors and land-based casino operators. A six-month consultation period has been initiated to address concerns, particularly regarding international brand dominance.

The NCLGS draft model legislation is a forward-thinking initiative designed to empower US states to regulate online gaming effectively. By providing a flexible yet robust framework, the draft balances economic growth, consumer protection, and industry integrity.

As states explore this blueprint, they have the opportunity to foster a thriving, regulated iGaming market that benefits players, operators, and communities alike. Meanwhile, ongoing public commentary will refine the model, ensuring it meets the diverse needs of the US gaming ecosystem.

This effort underscores the NCLGS’s leadership in shaping the future of online gaming in America—one state at a time.