Lawmakers from states where gambling is legal are proposing standards for additional states that are considering allowing internet gambling. The proposed model legislation includes a tax rate of 15% to 25% and a ban on credit card deposits. The National Council of Legislators from Gaming States issued this proposal to provide a framework for states contemplating internet gambling legalization.
Currently, seven U.S. states offer legal online casino games, with Nevada specifically offering internet poker. The legislation aims to incorporate successful practices from states like New Jersey, a pioneer in regulating internet gambling since 2013. The proposed laws emphasize consumer protection and aim to prevent illicit activities in online gambling.
The legislation suggests establishing a government agency to oversee online wagering and limits deposits to $20,000 within a 24-hour period. It also prohibits the use of credit cards for funding gambling accounts. The proposed tax rate of 15% to 25% is considered a reasonable starting point for discussions, aiming to strike a balance between revenue generation and market accessibility.
States like Maryland, Ohio, and Louisiana have been exploring online gambling measures, with varying degrees of progress. New York lawmakers have faced challenges in enacting online casino gambling but have allowed online sports betting. The potential revenue from online gambling is becoming increasingly attractive to states facing budgetary pressures.
The proposal does not seek to establish national standards, as gambling regulation is primarily within states' jurisdiction. Despite sporadic attempts to enact nationwide gambling laws, state-level regulation remains predominant. The revenue generated from online gambling in states like New Jersey underscores the financial benefits that can be derived from this industry.
As the new year approaches, more states are expected to consider internet gambling as a revenue driver. The proposal's alignment with existing successful models in states like New Jersey provides a solid foundation for states looking to legalize online gambling. The evolving landscape of internet gambling regulation will likely see further developments in the coming year.
