Creating an Effective Regulatory Framework
The NCLGS stated that the goal of the model act was to create an effective, comprehensive, and efficient regulatory framework that can be used to build confidence and trust in the integrity of the regulation process and the fairness of iGaming operations.
The provisions are to build on strict regulations and oversight within all areas of the industry. The legislation draft includes several components, such as responsible gaming measures, revenue generation, and advertising standards.
The measure proposes licensing for suppliers and operators, with five-year time frames. Strict rules would also ensure every operator is compliant. The goal of the measure is to fill in any gaps within the industry where real-money online gaming is present. Currently, only seven states allow such services.
Prohibition of Sweepstakes Gaming
Perhaps in an attempt to protect real-money iGaming, the bill also proposes a prohibition of sweepstakes services. Penalties for offering sweepstakes entertainment would include fines starting at $10,000 and going as high as $100,000 per offense. Additional punishment could include imprisonment for up to two years for those who continue to violate the proposed ban.
Several states are concerned about sweepstakes gaming as operations tread the line between illegal gambling and legal services. Many lawsuits in states like California and Connecticut are connected to major sweepstakes brands. Players are suing operators like VGW and Pulsz Casino for offering illegal gaming and praying on vulnerable individuals.
It is still being determined if this potential ban would gain any headway, as the sweepstakes industry is a bustling business. New sites are popping up almost monthly as the industry gains a strong foothold in the US online entertainment industry.
Additional Bill Details
The legislation also covers additional information, such as taxation, KYC procedures, and advertising guidelines. The bill recommends that operators be taxed 15-25% and that strict measures be implemented for anti-money laundering and Know Your Customer procedures.
The measure also wants to see strict advertising guidelines in place, with promotions targeting players 21 and up only. Platforms should not have a youthful feel, and responsible gambling messaging should be embedded to identify the risks and provide support for players in need of counseling or addiction services.
