A bill that proposed to allow state casinos to offer online gaming has been withdrawn from the House in Arkansas. Rep. Matt Duffield filed HB1861 last month but withdrew the proposal on Monday for further study.
The bill would have allowed traditional casino games such as blackjack, roulette, and craps to be offered by the state’s licensed casinos. In Arkansas, there are currently three licensed casinos: Oaklawn Racing Casino Resort, Saracen Casino Resort, and Southland Casino Resort.
The casinos already offer online sports betting through apps but do not support casino games.
The bill would also have increased penalties for unlicensed online gaming platforms. Under its conditions, it would have become a felony offense to operate an unlicensed online casino or sportsbook in Arkansas.
Protecting Arkansas casinos
Saracen Casino Resort’s chief market officer, Carlton Saffa, described the bill as a defensive measure against the spread of unlicensed online gaming. Saracen has urged state regulators to take action since March 2023 when they submitted a proposal to the Arkansas Racing Commission to increase iGaming options.
The state casinos are frustrated at their inability to offer regulated online gaming, which opens the door for more offshore casinos to fill the void. Saffa noted particular concerns over platforms with ties to China.
Arkansas legalized casino gaming and sports betting in 2018 and granted licenses to the three mentioned operators. Plans for a fourth license to be issued in Pope County have been delayed over ongoing legal disputes.
In 2024, legal gambling in the state generated $1.5 billion in revenue, which brought in approximately $110 million in tax revenue. Legalizing online casinos could vastly increase that amount.
Alternatives to legal online gaming
With the bill withdrawn, Arkansas residents must continue using alternative means to gamble online, such as social and sweepstakes casinos. The Social and Promotional Games Association (SPGA) will be satisfied with the outcome.
The group spoke out against the bill last month when it was filed. A statement declared it to be “anti-competitive efforts pushed by entrenched casino interests and represent a significant threat to businesses, innovation, and a consumer’s freedom to choose what games they can play on their phones.”
Along with North Dakota and Oklahoma, Arkansas residents show the highest engagement in sweepstakes casinos. The user rate has increased nearly tenfold since 2020. On the other hand, states with legal online gaming, such as Connecticut, Michigan, New Jersey, and Pennsylvania show far lower interest in these platforms.
The bill’s withdrawal is, therefore, welcome news for the SPGA and social casinos. They will continue to dominate the market in Arkansas, enjoying their legal loophole to offer online gaming.
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