The National Council of Legislators from Gambling States (NCLGS), an influential US body bridging lawmakers to discuss gambling-related issues, has unveiled a new iGaming ruleset advocating for a ban on sweepstakes games. This initiative arises amid rising opposition to the controversial sweepstakes sector. For years, sweepstakes have dwelled in a “gray area” of gambling; while not legally classified as gambling, the similarities are undeniable. As such, regulators and industry stakeholders have increasingly labeled it as “illegal gambling,” spurring NCLGS to incorporate a ban within their Model Internet Gaming Act draft.
Designed to offer a comprehensive framework for US jurisdictions contemplating the regulation of online gambling, the Model Internet Gaming Act is a collaborative effort by lawmakers, experts, and consultants addressing key market areas. The aim is to create a robust regulatory environment fostering public trust in the integrity of the process. With public consultation open until December 31, NCLGS’s draft encourages jurisdictions to issue five-year licenses and implement strict compliance measures. Additionally, this model seeks regulatory alignment among the seven states where iGaming is already legal, with recommendations spanning from a tax rate between 15% to 25%, strict anti-money laundering (AML) rules, robust Know Your Customer (KYC
Designed to offer a comprehensive framework for US jurisdictions contemplating the regulation of online gambling, the Model Internet Gaming Act is a collaborative effort by lawmakers, experts, and consultants addressing key market areas. The aim is to create a robust regulatory environment fostering public trust in the integrity of the process. With public consultation open until December 31, NCLGS’s draft encourages jurisdictions to issue five-year licenses and implement strict compliance measures. Additionally, this model seeks regulatory alignment among the seven states where iGaming is already legal, with recommendations spanning from a tax rate between 15% to 25%, strict anti-money laundering (AML) rules, robust Know Your Customer (KYC) protocols, modern advertising guidelines, and enhanced responsible gambling measures.
The urgency in tackling the sweepstakes market is emphasized through significant penalties for violations, ranging from $10,000 to $100,000, with repeat offenders facing up to two years in jail. This aggressive stance underscores the broader industry push to curb what many see as unregulated and potentially harmful gambling practices. State regulators and tribal leaders alike have voiced their concerns, arguing that the sweepstakes market not only undermines regulated gambling sectors but also poses risks to younger players who might be more susceptible to these games. The inclusion of these
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