iGaming Bill is Gaining Traction in Arkansas

Last week, there were rumblings in the Arkansas legislature that an online casino gambling bill was coming on the horizon. It's official. House bill HB 1861 has officially made it to the House floor where debate and a possible vote will occur during the current legislative session.

The new bill is specifically designed to change the Arkansas state constitution to allow for the legalization of online casino gambling. Ta would give the state's existing retail casino operators the ability to secure licensing to offer digital table games, live dealer games, and online slots. If passed, the bill would also strengthen the financial penalties for any online operator caught offering unlicensed online gambling within the state's boundaries.

HB 1861 Heads to the House Floor

Behind the sponsorship of Arkansas Rep. Matt Duffield, HB 1861 was proposed among House members, gaining the support of 13 other co-sponsors. That was enough support to get the bill placed in line for scheduling by the House’s Judiciary Committee. It is worth noting that none of the c-sponsors of this bill are on the Judiciary Committee. It's also worth noting that there is no corresponding companion bill floating around in the Senate.

In its current state, HB 1861 has four (4) major components:

• Additional gaming licenses would be offered to retail casino operators to allow them to offer iGaming access


• The penalty for offering unauthorized iGaming access would be increased to a "Class D" felony (this seemingly targets sweepstakes casinos that are all the rage right now)


• A new state lottery would be added that would be separate from the state's current Arkansas Scholarship Lottery


• A state of emergency would be declared related to illegal gambling in the state, which would prompt the release of funds to support individuals harmed by such activities
  

It's important to reiterate that the state's constitution might have to be amended to allow for such activities. That would likely be the focus of House debate as opposed to the actual contents of the bill. If by chance the constitution does need to be amended, a ballot initiative would have to be presented to registered voters. That could take place as early as the 2026 mid-term elections.

Is There Supports Among Retail Casino Operators?

Currently, there are three (3) retail casinos operating in the state of Arkansas:

• Oaklawn Racing Casino Resort


• Saracen Casino Resort


• Southland Casino Hotel
  

Support for iGaming access is mixed among these three (3) operators. Saracen Casino Resort Chief Marketing Officer Carlton Saffa fully supports such legislation. Oaklawn Racing Casino Resort is currently a hard "no" with officials believing it will create a net loss in gambling revenue. That leaves Southland Casino Hotel officials who have yet to show their cards. If HB 1861 continues moving forward, they would likely be forced to choose a side.

Note: With less than three (3) weeks remaining in the current legislative session, it's hard to predict whether or not there is time to give this bill all due consideration.