Arkansas Bill Prohibits Sweepstakes Gaming, Legalizes iGaming

• A bill to prohibit sweepstakes gaming, legalize iGaming introduced in Arkansas
• The bill will allow casinos to offer iGaming, prohibit dual-currency sweepstakes games
• Arkansas has three licensed casinos

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Arkansas lawmakers are hoping to prohibit sweepstakes gaming and legalize iGaming in the Natural State in one fell swoop.

An Arkansas bill introduced in the House seeks to prohibit dual-currency sweepstakes games and legalize iGaming in Arkansas for the state’s three casinos. Saracen Casino Resort in Pine Bluff, Oaklawn Racing Casino Resort in Hot Springs, and Southland Casino Hotel in West Memphis all currently offer online sports betting.

If legalized, casinos may partner with up to one iGaming operator for their services.

Dual Purpose Bills a First

Sen. Dave Wallace (R-19) also introduced SB 524, while Rep. Matt Duffield (R-53) introduced companion bill HB 1861 on Wednesday, March 19.

However, Wallace withdrew his Senate bill this morning from the Senate Insurance and Commerce Committee. Duffield’s bill still resides in the House Judiciary Committee.

The House legislation seeks to prohibit sweepstakes gaming that utilizes a “dual-currency system of payment that allows the player to exchange the currency for a prize, aware, cash, or cash equivalent, or a chance to win any prize, award, cash, or cash equivalent.”

It also prohibits casino style gaming, including slots, video poker, or table games such as blackjack, roulette, craps or poker. It also prohibits sweepstakes games that simulate lotter and sports wagering as well.

Sweepstakes that do not award cash or a cash equivalent will not be prohibited under the legislation.

The bill also serves a dual purpose, as it seeks to legalize iGaming for the state’s three licensed casinos.

iGaming Details in Legislation

While the bill seeks to prohibit unlicensed gaming from the state, it hopes to expand another gaming market for its casinos.

If legalized, each of the state’s three licensed casinos will be able to partner with up to one iGaming partner. However, the law is the same for online sports betting and none of the licensed casinos have partnered with existing sports betting operators. Each of the state’s three casinos utilize their own designed platforms for online sports betting.

The legislation does not set a proposed iGaming tax rate or license fee. However, it could mirror the state’s interesting online sports betting tax structure, implementing a 13% sports betting tax rate on the first $150 million, which increases to 20% after the initial $150 million.

Additionally, casinos can only partner with an outside online sports betting operator if the casinos keep 51% or more of the net gaming revenue in the partnership. This is designed to keep sports betting tax revenues in the state and does not provide a beneficial financial arrangement for outside operators.

If approved, the Arkansas Racing Commission will regulate iGaming and award licenses.

Arkansas is one of several states exploring iGaming currently, as Illinois online casino legislation is working its way through the state legislature.