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In Arkansas, legislation to legalize online casino gaming and outlaw sweepstakes casinos was introduced Wednesday, March 19, at the legislative session in Little Rock.
The companion Senate and House bills—SB524 and HB1861—would require online casino gaming and sports betting to be operated only by Arkansas’ three licensed casinos. Those brick-and-mortar properties are Saracen Casino Resort in Pine Bluff, Oaklawn Racing Casino Resort in Hot Springs, and Southland Casino Hotel in West Memphis. These three already operate legal online Arkansas sportsbooks available statewide under their own brands. Oaklawn also offers a mobile app for betting on horse races.
Operation of untaxed, unregulated online sportsbooks and sweepstakes casinos would be a felony under the companion House and Senate bills.
Online casino gambling, known as iGaming, allows bettors to use a cellphone or computer to play traditional casino games such as slots and craps for real money. Though currently illegal in Arkansas, it is legal in eight other states. Online casino gaming typically raises more tax revenue than sports betting in states where both are legal.
The Arkansas legislative session is scheduled to end April 11. Before any bill can become law, it first requires approval in the state Senate and House before going to Gov. Sarah Huckabee Sandersfor her consideration.
Saracen chief market officer Carlton Saffa told Gambling.com that unregulated sweepstakes casinos, which are available across the country, including in Arkansas, are the "Wild West" when it comes to a lack of state oversight.
"Unregulated online gaming is rampant across the U.S. and Arkansas," Saffa said. "Most are offshore, and many directly linked to China."
He said that by banning unregulated online casinos in Arkansas and limiting online games to the three brick-and-mortar properties, the amount of online gaming in the state would shrink, not increase.
“We are constricting the number of parties that can participate by regulating it, limiting it, and creating felony provisions for bad actors,” Saffa said.
He said the bills introduced Wednesday will "tighten up this Wild West by regulating it." Rep. Matt Duffield, R-Russellville, is the lead sponsor of the House bill. Sen. Dave Wallace, R-Leachville, is the lead sponsor of the Senate bill.
"Rather than an unregulated market, it limits this activity to only the three Arkansas casinos, who will have to abide by strict regulations on age and identity," Saffa said. "It will generate tens of millions in revenue by displacing this offshore market and subjecting it to tax. A simple ban without allowing the legitimate operators to displace the offshore guys will do nothing to address the problem."
The companion bills introduced Wednesday also provide provisions for university Name, Image, Likeness (NIL) drawings, "should a school ask for one," Saffa said. Those drawings would generate revenue for universities in recruiting athletes to the schools.
"This is not the primary focus of the bill," Saffa said in a tweet late Wednesday. "Displacing the bad actors is priority 1, but NIL serves as an additional benefit."
In 2024, Saffa appeared on an episode of Gambling.com's "The Edge," discussing his support of legal iGaming.