The National Council for Legislators from Gaming States (NCLGS) has released a draft of its Model Internet Gaming Act (MIGA), aimed at simplifying the regulatory landscape for online gaming across the United States. This proposed framework will be open for public comment as the NCLGS prepares for its winter meeting in New Orleans.
Standardizing Online Gaming Regulation Across States
The MIGA serves as a guideline for state legislators who are exploring options to regulate their iGaming markets. The primary goal is to reduce inconsistencies between states, making it easier for operators to comply with varying regulations. The draft promotes standardization, helping operators navigate the complexities of meeting requirements in multiple jurisdictions.
One of the draft’s key components is a proposal for a unified approach to responsible gaming. This includes banning credit card payments for online gambling, capping individual deposits at $20,000 within 24 hours, and restricting gambling advertisements on college campuses. The act also mandates the creation of a statewide Player Health Program to protect vulnerable individuals.
The draft also addresses the tax structure for online gaming. The NCLGS suggests a tax rate range of 15% to 25% for online casinos. This would be significantly lower than the current tax rate in Maryland, which stands at 55%. The NCLGS argues that competitive tax rates foster technological innovation and make it easier for new market participants to enter the industry.
Regarding licensing, the NCLGS suggests several licenses and costs for operators, platforms, and providers of online gaming. Although the document does not outline a charge for online casino licensing or place a cap on the number of operators per state, it does take into account the potential for temporary licenses that would permit operators to undertake iGaming in other states.
The MIGA draft aims to balance state regulation with the requirement for a competitive environment in order to establish a more unified and effective online gaming market throughout the United States. To make sure the framework works best for operators and consumers, more changes might be made as the public feedback period goes on.
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