Arkansas pushes to legalise online casinos, ban sweepstakes
Arkansas lawmakers are advancing legislation to regulate online gambling, in a bid to curb the influence of unlicensed operators and sweepstakes casinos. House Bill 1861 (HB 1861), filed on 19 March 2025, seeks to criminalise unregulated gambling platforms while expanding legal online gaming under state-licensed casinos.
The bill, endorsed by Rep. Matt Duffield and Sen. Dave Wallace, has bipartisan support, including backing from Senate president pro tempore Bart Hester and Reps. Ken Ferguson and Glenn Barnes.
It now heads to the House Judiciary Committee, though discussions are unlikely before lawmakers return from their spring recess in April. A Senate companion bill was withdrawn soon after filing.
Extending online casino gaming
HB 1861 proposes allowing the state’s three licensed casinos, Oaklawn Racing Casino Resort, Saracen Casino Resort, and Southland Casino Resort, to offer online versions of traditional casino games such as blackjack, roulette, and craps. Currently, these casinos operate sports betting apps but do not provide online casino gaming.
The bill also includes provisions for interactive gaming and promotional drawings, potentially benefitting name, image, and likeness (NIL) collectives associated with Arkansas universities, offering financial support to student athletes. Oversight of these gaming activities would fall under the Arkansas Racing Commission, which regulates the state’s casino and sports betting sectors.
A key driving force behind the bill is the growing presence of offshore and unlicensed gambling platforms. Carlton Saffa, chief market officer of Saracen Casino, describes bill HB 1861 as a necessary measure to counteract illegal online operators that neither contribute tax revenue nor adhere to consumer protection laws.
Previously, another proposal was submitted to the Arkansas Racing Commission advocating for a rule change to permit limited forms of iGaming. The proposal sought to limit the impact of unregulated sites, many of which operate from overseas jurisdictions. Concerns over illicit gambling have escalated, with similar regulatory actions being pursued in other U.S. states. Michigan recently issued cease-and-desist orders to nine unlicensed online operators, while Mississippi criminalised illegal online gambling.
A broader regulatory shift
HB 1861 follows a broader national trend toward stricter online gambling regulations. Alongside state efforts to curb illegal operators, there has been a growing push to regulate sweepstakes-style gambling platforms. New York Senator Joseph Addabbo has also led similar efforts to close legal loopholes that allow unregulated online sweepstakes casinos to operate under vague classifications, further complicating regulatory enforcement.
If passed, the bill would make operating an unlicensed online casino or sportsbook a felony in Arkansas, reinforcing the exclusive rights of the state’s three licensed casinos. While the bill has gained political momentum, it still faces opposition from several industry leaders, which argues that it could stifle competition and restrict consumer choice.
