Update – HB1861 failed to pass, largely due to its iGaming component.
Lawmakers in Arkansas are currently debating the future of the state’s gambling landscape, with a proposed bill that aims to both outlaw sweepstakes casinos and legalize iGaming.
Filed by Republican Representative Matt Duffield (pictured) on March 19th, HB1861 seeks to address these two issues, signaling a potential shift in the state’s gambling regulations.
Republican Senator Dave Wallace filed a counterpart bill in the Senate on the same day (SB524), but it was withdrawn the next day – no reason has been given. Still, HB1861 has been referred to the House Judiciary Committee, beginning its journey through one stream of the Arkansas legislature.
HB1861 Explained: Arkansas Anti-Sweepstakes Effort
Section 1 of HB1861 seeks to update Arkansas Code § 5-66-103(a), which has traditionally dealt with defining illegal brick-and-mortar gambling houses. Updates would add provisions against unlicensed real money and sweepstakes casinos, the latter being defined as a casino that utilizes “a dual-currency system of payment that allows the player to exchange the currency for a prize, award, cash, or cash equivalent”.
If implemented, running illegal casinos would become a Class D felony in Arkansas. It’s also noted that “a sweepstakes game that does not award cash or a cash equivalent” will not be deemed illegal, meaning pure social casinos would be exempt.
Section 2 of the bill looks to update Arkansas Code Title 23, Chapter 117, which deals with casino licensing, currently handled by the Arkansas Racing Commission. An ‘Interactive Gaming Act’ would be added to the Code, permitting current land-based casinos in the state to apply for an iGaming license, allowing them to run their own online casino.
Currently, there are three licensed physical casinos in the state: Saracen Casino Resort, Oaklawn Racing Casino Resort, and Southland Casino Hotel. Saracen has previously pushed for legal iGaming in the state, while Oaklawn has argued against it, so all three won’t necessarily pursue a license.
This section also contains provisions for student athletes within the state to monetize their name, image, or likeness.
Finally, Section 3 contains an ‘emergency clause’, stating:
“It is found and determined by the General Assembly of the State of Arkansas that unlicensed, unregulated, and untaxed casino style and sports wagering offerings are an ever-growing threat to the citizens of Arkansas.”
Essentially, if approved by the legislature, the bill could skip the usual waiting times and enter law immediately due to the perceived urgency of this issue.
Next Steps
HB1861 will now make its way through the normal stages of debate and possible amendment, and it’s likely another counterpart bill will be required to follow a similar journey in the Senate since the original was withdrawn.
Arkansas now joins the growing ranks of US states debating bills to outlaw sweeps casinos, a list that already includes New York, New Jersey, and Florida. However, the Natural State would be the first to legalize iGaming in the same swoop, which would make it the 8th US state to permit online casino gambling.
Author: Joseph Allen
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