The National Council of Legislators from Gaming States (NCLGS) has published its draft model igaming legislation to help US states that are considering regulating online gaming.
The regulatory framework suggests a range of policies for state legislators, regulators and other stakeholders to consider.
The NCLGS said the model legislation is designed to establish an “effective, comprehensive, and efficient regulatory framework” that will “foster public confidence and trust in the integrity of the regulatory process and the fairness of internet gaming operations.”
“The regulatory provisions are intended to extend strict regulation and oversight over all aspects of internet gaming operations,” the body added.
The NCLGS recommends a tax rate of between 15 and 25 per cent for online gaming in the model framework, noting the average of 19 across the US.
It says that total deposits by an individual over a 24-hour period should not exceed US$20,000.
In another point of note in the model framework, online sweepstakes games are outlawed.
“Any person or entity found in violation of this section shall be subject to a fine of not less than $10,000 and not more than $100,000 for each violation and subject to potential loss of gaming licence,” the NCLGS draft says.
“Repeat offenders shall be subject to increased fines, potential loss of gaming licence and potential imprisonment of up to two years.”
Deposits and withdrawals through debit cards, digital wallets, bank wires and cash via casinos or other approved retail locations would be permitted.
However, the use of credit cards is prohibited in the draft legislation.
The legislation says each online operator should appoint a Responsible Gaming Lead to ensure at-risk patrons are provided with responsible gaming information.
The draft document says marketing should not use “characters, performers or influencers who primarily appeal to audiences under the age of 21.”
"In crafting this document, we fully realise that each state has a unique gaming sector with disparate interests and concerns," the NCLGS said.
"Nonetheless, we believe the regulatory framework set forth herein may be a useful tool for consideration as states embrace the vast potential of internet gaming.
"Nothing herein shall be intended to regulate any aspect of tribal gaming, which is governed exclusively by the Indian Gaming Regulatory Act and individual state compacts."
UK Gambling Commission executive director, Tim Miller, wrote on LinkedIn: “Great to see National Council of Legislators from Gaming States publish their model igaming legislation for public comment.
“I’ve been delighted to share the UK’s experiences of regulating the online market to help shape this important piece of work.”
The proposed Model Internet Gaming Act will be open for public comment until December 31.
