A bill to legalize online casino gaming platforms and ban sweepstakes gaming in Arkansas failed to advance out of an initial committee hearing Tuesday. While the House Judiciary Committee could consider the bill later this week, any measure must pass through both the full House and Senate by April 11.
Arkansas Bill Would Implement The Interactive Gaming Act
Arkansas bill HB 1861 would group sweepstakes gaming into the category of illegal gambling and allow the state’s three licensed casinos — Oaklawn Racing Casino Resort Hotel, Saracen Casino Resort, and Southland Casino Hotel — to offer online casino gaming.
A potential fourth retail casino filed a lawsuit aiming to overturn a 2024 ballot measure that banned it from opening. The fourth casino, which would be located in Pope County, could have an online sportsbook as well. SB 524 was also withdrawn by the author on March 20.
Section two of the bill would establish the Interactive Gaming Act. Each of the three casinos listed above (along with a potential fourth brick-and-mortar facility) would receive one iGaming license to add to their online sportsbook license.
The Arkansas Racing Commission would regulate the state’s online casino market. However, the legislation does not set a proposed tax rate or license fee.
Sweepstakes Gaming Operators Offer Casino-Style Gaming
In mid-March, the state’s General Assembly determined that “unlicensed, unregulated and untaxed casino-style and sports wagering offerings are an ever-growing threat to the citizens of Arkansas.”
The state of Arkansas defines sweepstakes as “any online or mobile game, contest, or promotion” that “utilizes a dual-currency system of payment that allows the player to exchange the currency for a prize, award, cash or cash equivalent, or a chance to win any prize, award, cash, or cash equivalent” and simulates casino-style, lottery games, or sports betting.
A total of 39 states, including Washington, DC, and Puerto Rico, offer some form of legal sports betting, and 31 allow statewide mobile operators.
It should be noted that Arkansas is the only state with a competitive legal online sports betting market but no industry giants, such as BetMGM, DraftKings, ESPN BET, or FanDuel.