NCLGS Seeks Public Input on Model Internet Gaming Act Draft
The National Council for Legislators from Gaming States (NCLGS) has published a draft of its Model Internet Gaming Act and is inviting public feedback before its winter meeting in New Orleans.
The draft also features a proposed a responsible gaming model for states to adopt.
The MIGA serves as a comprehensive framework for state lawmakers to consider when establishing regulations for their online gaming markets. Its primary objective is establishing a more uniform regulatory framework for online gaming across US states, simplifying compliance for operators navigating multiple markets.
The draft also features a proposed responsible gaming model, outlining best practices for states to adopt and promote a safer gaming environment. These include banning credit card payments, capping daily deposits at $20,000, prohibiting college campus advertising, and establishing a statewide Player Health Program.
Additionally, the draft proposes a unified tax structure, with the NCLGS recommending a tax rate of 15% to 25% for online casinos. The draft justifies this proposal, arguing that a competitive tax rate fosters technological innovation and removes barriers to entry for new market participants. Presently, Maryland has the highest tax rate on digital games in the US, at 55%.
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Proposed Licensing Framework
The NCLGS has also proposed licensing reforms, including separate licenses and fees for online gaming suppliers, operators, and platforms and temporary licenses for interstate iGaming operations. However, the draft does not specify a standard licensing fee for online casinos or the number of operators allowed to operate in each state.
The requirements were developed through a joint effort by NCLGS founder Steve Geller, President Shawn Fluharty, and nine state lawmakers from diverse jurisdictions, such as Michigan, Pennsylvania, and Massachusetts.
The NCLGS will vote on the model in early 2025, following a public comment period that extends until 31 December. Meanwhile, lawmakers can use the draft model when introducing iGaming bills in the coming year.
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