At the recent National Council of Legislators from Gaming States (NCLGS) conference in Pittsburgh, a groundbreaking proposal for the 2025 online gambling framework was unveiled. This initiative, spearheaded by former Florida State Senator Steve Geller, aims to revolutionize the landscape of internet gambling in the United States in the coming years.
The proposed framework covers a wide range of crucial areas including revenue generation, responsible gaming practices, addressing the cannibalization debate, establishing advertising standards, licensing frameworks, setting age restrictions, and enhancing data sharing mechanisms. One of the key highlights of the proposal is the suggested tax rate of 15%-25%, in line with the current average tax rate in states where online gambling is already legalized.
NCLGS President Shawn Fluharty, a West Virginia state representative, announced plans to circulate a draft of the legislation among NCLGS members by August 1st. This will be followed by a 30-day public commentary period to gather feedback and insights from various stakeholders. The final draft is expected to be presented at the NCLGS winter meeting in New Orleans in December.
While several states have legalized sports betting since the 2018 Supreme Court decision, only a handful, including West Virginia, Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, and Rhode Island, currently allow comprehensive online gambling. Lee Copella, iGaming compliance director at the Pennsylvania Gaming Control Board, emphasized the differences between sports betting and casino gaming, highlighting the more stable revenue stream from the latter.
In Maryland, State Senator Ronald Watson has been a vocal proponent of legalizing online gambling, emphasizing the need for extensive educational efforts to garner support from legislators and the public. Maryland’s approach involves putting gaming expansion decisions directly to voters, with the next opportunity scheduled for 2026.
The financial implications of online gambling are substantial, with tax revenues from digital gaming surpassing those from sports betting by a significant margin. This revenue potential is crucial, particularly as states grapple with economic challenges following the depletion of COVID relief funds. Discussions at the conference also focused on the importance of technological standards and anti-money laundering measures to ensure a secure and reliable gaming environment.
Despite concerns over the impact of online platforms on traditional casinos, data from states like New Jersey has shown minimal effects on casino revenues and employment. Bill Pascrell III of the Princeton Group argued that the myth of cannibalization has been largely debunked by empirical evidence.
Overall, the proposed 2025 online gambling framework represents a significant step forward in shaping the future of internet gambling in the United States. With careful consideration of key components such as taxation, responsible gaming practices, and regulatory standards, the legislation has the potential to establish a solid foundation for a thriving online gambling industry in the years to come.
