Online casino gambling legislation in both the House and Senate was withdrawn late last week only weeks after both measures were introduced. A study on iGaming will commence and could possibly bear fruit in next year’s legislative session.
No Dice for iGaming
Representative Matt Duffield withdrew his House Bill 1861 only weeks after its introduction, which would have made online casino gambling legal in Arkansas. Similarly, his colleague in the upper chamber, Senator Dave Wallace, had also withdrawn his corresponding legislation, Senate Bill 524 (SB524), just one day after its announcement.
Had the measure been approved, it would have allowed the state’s three land-based casinos, including Saracen Casino Resort in Pine Bluff, Oaklawn Racing Casino Resort in Hot Springs, and Southland Casino Resort in West Memphis, to apply for iGaming licenses. This would allow those operators to offer digital versions of slots and casino table games, as well as live dealer games, under the authority of the Arkansas Racing Commission.
State Officials Oppose iGaming
Senate President Pro Tempore Bart Hester stated iGaming legislation would not receive a hearing this year due to a lack of support, which prompted the withdrawal of both bills. Governor Sarah Huckabee Sanders and Attorney General Tim Griffin have both voiced their opposition to any iGaming legislation in the state.
Yet, the news was not all bad as the House Judiciary Committee recommended that Representative Duffield’s House Bill 1861 undergo further study before next year’s legislative session. Those findings could give future iGaming bills in Arkansas a boost should the results assuage at least some of the concerns of critics within the legislature.
Bill Takes Aim at Unregulated Operators
HB 1861 would have also taken aim at unregulated offshore operators and sweepstakes casinos, a social casino that allows free play through sweepstakes coins and other mechanisms. However, those casinos also allow users to buy tokens, which can ultimately be turned into cash through prize winnings.
It is the transfer of cash that has rankled industry groups such as the American Gaming Association, terming it “gaming in the gray.” The group argues it is in direct conflict with licensed operators that must abide by state law and pay taxes.
Highlighing Unregulated Play
Vena Schexnayder, executive director of the nonprofit Arkansas Problem Gambling Council, spoke about unlicensed and unregulated gaming companies currently operating in Arkansas.
“They’re not quite illegal on where they’re at, per se, in the Isle of Man or offshore, far away from the U.S. borders and territories,” Schexnayder said. “So, they’re not registered and not paying taxes and not following any regulations, but they do have authorization to have bandwidth to be able to be played by Arkansans across the state.”
Casinos Divided on iGaming Impact
Although the casinos would get a piece of the online gambling proceeds through their third-party platform providers, response to iGaming from Arkansas’ three land-based casinos has been mixed. Some are concerned about the possibility of cannibalization of their in-person traffic due to the convenience of mobile casino gaming. However, Carlton Saffa of Saracen Casino Resort in Pine Bluff has voiced his approval.
“We’re in a highly regulated space that we recognize can cause harm, so we have an obligation to the citizens of Arkansas to best manage this risk, and the risk is best managed by making sure legitimate licensed actors are the only ones doing it,” he said. Allowing “legitimate operators” to offer online gaming at the expense of offshore casinos “will generate millions in revenue,” he added.
