Arkansas Moves to Legalize Online Casino Gaming

Illegal online gambling is booming in Arkansas—but that may soon change.

A new bipartisan bill introduced by state lawmakers aims to legalize online casinos for licensed operators while outlawing unlicensed sites.

Backed by major political figures and the state’s top casinos, the bill seeks to protect consumers, boost state revenue, and eliminate offshore competition.

If passed, HB 1861 will reshape Arkansas’ digital gambling landscape, introducing strict penalties for illegal platforms and enabling safe, regulated iGaming.

Arkansas Eyes Legal Online Casinos as Lawmakers Crack Down on Illegal Gambling

3 Key Points:

• HB 1861 would permit Arkansas’ three licensed casinos to offer online casino games like blackjack and roulette.
• The bill criminalizes unlicensed gambling operations, making it a felony to offer online betting without a license.
• Interactive games and promotional draws could help fund NIL (Name, Image, Likeness) collectives for student athletes.

Arkansas may soon join the growing list of U.S. states offering legal online casino gaming. A new bipartisan bill—House Bill 1861 (HB 1861)—proposes to allow the state’s three licensed casinos to launch online casino platforms while simultaneously cracking down on illegal offshore gambling websites.

Sponsored by Representative Matt Duffield and Senator Dave Wallace, the bill represents a unified push from both Republican and Democratic legislators to modernize Arkansas’ gambling laws. It has already gained backing from Senate President Pro Tempore Bart Hester and other influential lawmakers.

Under HB 1861, mobile apps operated by Saracen Casino Resort, Southland Casino Resort, and Oaklawn Racing Casino Resort would be allowed to host classic casino games such as roulette, blackjack, craps, and more. These casinos already operate online sports betting platforms, but iGaming would be a significant expansion.

The bill is currently awaiting review by the House Judiciary Committee and will likely be addressed after lawmakers return from their spring break in April. Although a Senate companion bill was introduced, it has since been withdrawn, leaving HB 1861 as the primary proposal.

Tackling the Black Market

One of the primary motivations behind the bill is the widespread use of illegal offshore gambling platforms. These sites offer full casino services—slots, table games, and more—without paying state taxes or following consumer protection laws. According to Saracen Casino’s Chief Market Officer Carlton Saffa, this puts Arkansas residents at risk while diverting millions in potential tax revenue.

In 2023, Saracen proposed regulatory changes to the Arkansas Racing Commission aimed at leveling the playing field. HB 1861 reflects that effort, emphasizing the need to displace unregulated competition.

The bill follows a broader national trend. Michigan recently issued cease-and-desist orders to nine illegal online operators, while Mississippi made unauthorized online gambling a felony earlier this year.

Felony Offense for Unlicensed Gambling

Should HB 1861 pass, operating an unlicensed gambling site in Arkansas would become a felony. The law would clarify that only licensed casinos within the state can offer real-money online gambling to Arkansas residents.

Proponents argue that this move will preserve tax revenue, ensure regulatory oversight, and provide Arkansans with safe and secure gambling options. The bill also strengthens the framework created by Amendment 100, the 2018 constitutional amendment that legalized casinos and sports betting in the state.

Notably, the fourth casino license initially intended for Pope County remains unawarded due to prolonged disputes. Thus, the bill cements exclusive online rights for the existing three casinos.

NIL and Collegiate Engagement

Beyond consumer protection and market control, HB 1861 includes a unique provision allowing interactive gaming and promotional drawings to support college athletic NIL collectives. These collectives compensate student athletes for their name, image, and likeness rights.

The Arkansas Racing Commission would oversee this component, ensuring proper regulation and compliance.

Industry Pushback

Despite growing legislative support, the bill faces opposition from the Social and Promotional Games Association (SPGA). The trade group argues the bill unfairly favors large casinos and restricts innovation.

In a statement to NEXT.io, the SPGA criticized the bill as “anti-competitive” and warned it could impact sweepstakes-based promotions used by app developers and retailers alike.

Arkansas stands at a crossroads. With HB 1861, the state could usher in a new era of legal, regulated online casino gaming while striking a major blow against illegal offshore operators. The bill’s success would not only modernize the state’s gambling framework but also ensure safer options for consumers and new revenue streams for public projects and collegiate athletes.

If lawmakers approve the measure when they reconvene, Arkansas could become a blueprint for responsible, tech-forward gambling reform in the U.S.