Arkansas Lawmakers Push for Online Gambling Expansion Amid Industry Debate

A proposed bill could reshape the online gambling landscape in Arkansas, allowing the state’s three licensed casinos to offer digital table games while cracking down on unlicensed offshore operators. House Bill 1861, introduced by a bipartisan group of lawmakers, would legalize interactive gaming across the state while making it a felony to operate unauthorized online casinos or sportsbooks.

The proposed legislation follows the success of mobile sports betting, which launched in Arkansas in 2022 but currently excludes traditional casino games like blackjack, roulette, and slots. If passed, the bill would integrate these offerings into existing sports betting apps, allowing Arkansans to access regulated, local alternatives to offshore gambling sites.

A Push for Regulation and Safety

Combating the impact of unregulated offshore casinos is one of the main goals of the law. These casinos continue to draw players from Arkansas with real-money gaming while operating outside of U.S. regulation. According to Carlton Saffa, Chief Market Officer of Saracen Casino Resort, these sites are run in Arkansas without regulation or taxes, which poses a risk. A number of these offshore locations are linked to international operators, he said, which might hurt the state’s economy and endanger consumers.

It would seem that lawmakers in Arkansas are getting on board with a nationwide movement to crack down on illicit gaming businesses. Already, states like Mississippi and Michigan have taken measures; the former has made it a crime to engage in internet gambling without a valid license, while the latter has issued cease-and-desist orders to nine operators of offshore casinos.

The bill also introduces a provision allowing interactive gaming to support Name, Image, and Likeness (NIL) collectives, which state universities use to fund student-athlete sponsorships. Under this initiative, Arkansas casinos could facilitate NIL-related gaming activities, provided they receive approval from the Arkansas Racing Commission.

The proposal aligns with a recent bill signed by Governor Sarah Sanders, which authorizes Arkansas universities to conduct sports raffles to generate NIL funding. While some casinos believe integrating NIL gaming into casino regulations could streamline oversight, others argue that collegiate sports funding should remain distinct from gambling legislation.

More Mixed Reactions

Although some casinos in Arkansas are supportive of the expansion of interactive gaming, others remain opposed. Some have voiced their strong opposition to the growth of online casino games, arguing that it would be a bad choice for public policy and raise new regulatory hurdles.

A state-regulated online gambling ecosystem, according to the bill’s advocates, would provide better consumer safeguards than offshore options while also generating millions in income, despite industry disagreements. The bill is now headed to the House Judiciary Committee, with discussions set to resume in April, and only after that can we be sure about the way forward.