Arkansas Bill Moves to Ban Sweepstakes Gaming While Opening Door for iGaming Legalization
Arkansas lawmakers have introduced groundbreaking legislation that simultaneously aims to prohibit sweepstakes gaming while legalizing iGaming in the state.
Casino poker chips and cards
The new bill, HB 1861, introduced by Rep. Matt Duffield (R-53), targets two major gaming changes:
- Prohibiting sweepstakes gaming that uses:
- Dual-currency payment systems
- Casino-style games (slots, video poker, table games)
- Lottery and sports wagering simulations
- Games offering cash prizes or equivalents
- Legalizing iGaming with specific provisions:
- Limited to Arkansas' three licensed casinos
- One iGaming partner allowed per casino
- Arkansas Racing Commission to regulate and license
The state's three eligible casinos are:
- Saracen Casino Resort (Pine Bluff)
- Oaklawn Racing Casino Resort (Hot Springs)
- Southland Casino Hotel (West Memphis)
While the bill doesn't specify tax rates or license fees, it may follow the state's current sports betting model:
- 13% tax on first $150 million
- 20% tax on revenue exceeding $150 million
- Requirement for casinos to maintain 51% of net gaming revenue in partnerships
A companion bill (SB 524) was introduced in the Senate by Sen. Dave Wallace (R-19) but has since been withdrawn from the Senate Insurance and Commerce Committee. The House bill remains active in the House Judiciary Committee.
The legislation maintains exemptions for sweepstakes that don't award cash or cash equivalents, while potentially expanding Arkansas' gaming market through regulated iGaming operations.