Arkansas lawmakers introduced new legislation that simultaneously aims to prohibit sweepstakes gaming while legalizing iGaming operations in the state.

The proposed legislation, introduced through companion bills by Sen. Dave Wallace (R-19) and Rep. Matt Duffield (R-53), would impact the state's three licensed casinos: Saracen Casino Resort, Oaklawn Racing Casino Resort, and Southland Casino Hotel.

Key provisions of the legislation include:

• Ban on dual-currency sweepstakes games that offer cash prizes or equivalents
• Prohibition of unlicensed casino-style gaming including slots, video poker, and table games
• Authorization for each licensed casino to partner with one iGaming operator
• Continued allowance of sweepstakes that don't award cash prizes

For iGaming operations:

• Casinos must maintain 51% or more of net gaming revenue in partnerships
• The Arkansas Racing Commission will regulate and license operators
• Tax rates and license fees are yet to be determined, but may mirror sports betting's structure:
  • 13% tax on first $150 million
  • 20% tax on revenue exceeding $150 million

Currently, all three casinos offer online sports betting through their own platforms rather than partnering with external operators. The new legislation maintains this focus on keeping gaming revenues within Arkansas while expanding into the iGaming market.

Note: Sen. Wallace has withdrawn his Senate bill (SB 524) from the Senate Insurance and Commerce Committee, while Rep. Duffield's bill (HB 1861) remains in the House Judiciary Committee.

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