Attempts to Standardize Online Gambling Regulations is Underway

In the U.S., 39 states have legalized retail and or online sports betting. There are another 7 states that have legalized online casino gambling, those states being Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Also, Michigan, New Jersey, Pennsylvania plus Nevada have passed online poker legislation. What makes all of this near impossible to follow is the regulations in each state differ in some way.

Last week, The National Council of Legislators from the Gaming States made its first big effort to try to build some level of legislative standardization among the states that might be looking at passing online gambling legislation in the future. It's an effort on the part of Big Brother to help Little Brother avoid mistakes and take advantage of what current online gambling states have already learned.

Here is what Council President Shaun Fluharty to the press in a press release:

"Many states have been discussing this but were having a hard time getting it across the finish line. Fluharty, a West Virginia Democratic state delegate, added: “We're trying to put together some best practices for them.”

Building a Legislative Framework

No one state is trying to dictate what other states might do in the future. The focus of what The National Council of Legislators from the Gaming States is trying to do is to create a consensus framework within which legislators in other states can work. The goal is to save legislators time and strife while bringing some level of standardization across the country. This standardization could also be implemented in existing gambling states should the opportunity to do so arise. It's almost certain this information will be discussed next week at the group's scheduled winter meeting in New Orleans.

Three key issues were mentioned in the Council's meeting. First, they strongly recommended that each state implement deposit limits of $20K per day per customer. Second, they recommended that each state not allow residents to use credit cards to fund their gambling activities. Both of these recommendations were directed at reducing the possibility of problem gambling issues.

The third and final key issue related to tax rates that the states could levy against the gross revenue generated by operators. The council's recommendation is to put rates in place that fall between 15% & 25%. This is pretty much in line with what most states are doing, though there are outliners on both sides of this range.

For instance, New York is at the high end, charging 51% on sports betting gross revenue. Pennsylvania also has high tax rates, charging 36% on sports betting gross revenue and 54% on online casino gaming revenue. At the low end of the spectrum, states like New Jersey are charging 13% online sports betting gross revenue and 15% tax on online casino games.

Why does standardization matter? The new Trump administration has made clear that they want states to decide things like online gambling on their own. A little guidance won't hurt as the country continues to accept online gambling as a part of life.