Lawmakers in Arkansas are taking steps to outlaw sweepstakes gaming while legalizing online casinos. On Wednesday, the Senate and House received the introduction of two companion bills, SB524 and HB1861. The House bill is awaiting additional examination by the Judiciary Committee, while the Senate bill has progressed from the Insurance and Commerce Committee to a planned floor vote.
The Interactive Gaming Act is being pushed through by Rep. Matt Duffield (R) and Sen. Dave Wallace (R). The three land-based casinos in the state—Southland Casino Hotel, Oaklawn Racing Casino Resort, and Saracen Casino Resort—would be able to enter the online gambling market thanks to this proposal. In Arkansas, all three already provide online sports betting.
If enacted, the bills would make it a felony to run online sweepstakes casinos and sportsbooks that rely on dual-currency funding. Additionally, universities would be authorized to conduct Name, Image, and Likeness (NIL) drawings to financially benefit student-athletes. The legislative session is set to conclude on April 11.
Support and Opposition From Casinos
Saracen Casino Resort has voiced strong support for the proposed legislation. On social media platform X, Saracen’s Chief Marketing Officer Carlton Saffa called the crackdown on sweepstakes gaming a necessary step to protect consumers. “For over a year Saracen has been consistent: unregulated and untaxed casinos are live in Arkansas at great risk to consumers,” Saffa wrote.
He criticized offshore operators, accusing them of disregarding state laws. “These games are operated by shadowy offshore entities, many with links to China. A mere ban to a foreign company with servers on island nations like Malta is meaningless – these entities are already breaking our laws today.”
However, Oaklawn Racing Casino Resort has opposed online gaming expansion. The company has previously expressed concerns about increased competition and its potential impact on brick-and-mortar operations.
Arkansas is not alone in targeting sweepstakes operators. These platforms often offer unregulated games, allowing users to play online slots, table games, or place sports bets using virtual currency. Players can purchase additional coins and redeem prizes for real money, raising regulatory concerns.
Proposals to outlaw these platforms are also coming from states like New Jersey and New York. A Senate committee in New York just approved an anti-sweepstakes bill, and politicians in New Jersey are thinking about doing the same. Prohibition legislation are also being considered in Connecticut and Mississippi.
Arkansas would become the eighth state in the union to oversee online casinos if it legalizes iGaming. Well-known gaming firms that offer regulated and licensed gaming choices, such as FanDuel, DraftKings, and bet365, may enter the market.
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