Bill
HB 1861
Summary — HB 1861 (Interactive Gaming / Illegal Online Gambling)Status and timeline- Introduced (prefiled) January 15, 2025. - Underwent amendments in March–April 2025. Committee
Status and timeline
- Introduced (prefiled) January 15, 2025.
- Underwent amendments in March–April 2025. Committee activity continued; on April 7, 2025 the author withdrew the bill and the Judiciary Committee recommended study in the interim. (Legislative record contains additional procedural entries; consult the chamber record for final posture.)
Purpose / intent
- To (1) make operation of an illegal online casino or sports wagering platform a felony, and (2) create and regulate an “Interactive Gaming Act” authorizing licensed Arkansas casino operators to offer regulated interactive (internet/mobile) gaming, including name‑image‑likeness (NIL) drawing games and certain casino games, subject to Arkansas Racing Commission oversight.
Key provisions
- Amends the criminal statute for “keeping a gambling house” to expressly prohibit unlicensed online platforms that permit wagers or simulate gambling; operation of illegal online casinos or sports betting is elevated to a felony offense (with carve‑outs described below).
- Creates Subchapter 2, “Interactive Gaming Act” (Ark. Code Title 23, Ch. 117):
- Definitions: “casino licensee,” “interactive gaming,” “interactive gaming system,” “dormant account,” and “name, image, or likeness drawing game.”
- Authorized activity: A casino licensee may operate interactive gaming only after Arkansas Racing Commission approval of the interactive gaming system and subject to Commission rules.
- Allowed games: server‑based wagers via mobile apps or internet browsers; NIL drawing games that benefit NIL collectives consistent with Arkansas law; casino‑style games (slots, table games), draw/instant/keno/bingo, and sports wagering as defined and approved by rule.
- Technical and operational controls:
- Interactive gaming systems must meet minimum technical standards (GLI‑19 or equivalent certification); core servers/databases must be hosted in the U.S. and participation limited to within the state.
- A casino licensee may have only one branded interactive gaming system.
- Prohibits interactive gaming where a majority of net casino gaming receipts from interactive gaming are paid to a third‑party vendor that assists operation.
- Commission must approve game titles/themes and may promulgate additional standards and rules.
- Commission requires monthly reporting of live licensed personnel involved in interactive gaming.
- Exclusions: Sweepstakes that do not award cash equivalents and licensed casinos and the Arkansas Scholarship Lottery (for certain sections) are carved out from criminal prohibitions.
Fiscal and administrative impacts (per DFA fiscal statement)
- State revenue: Undetermined increase in net casino gaming receipts tax collections (new taxable activity).
- Arkansas Racing Commission resources: needs two full‑time IT positions (Data Scientist — estimated $99,920; IT Security Analyst — estimated $57,755), additional staff or legal counsel to draft rules, training, and vendor review capacity.
- Arkansas Integrated Revenue System (AIRS) programming cost estimated ≈ $10,000.
- Time required: Commission rulemaking, vendor application development, procedural implementation, and staff hiring.
Potential legal/ drafting notes
- DFA legal analysis recommends clarifying which natural persons (versus entities) can be criminally prosecuted for unlicensed operation, and revising a drafting issue where use of “and” could unintentionally require simultaneous simulation of all listed gambling types (suggest changing to “or”).
Who is affected
- Primary: Arkansas Racing Commission (regulatory and enforcement duties); existing licensed casino operators (may offer interactive gaming, subject to approval); third‑party vendors that provide gaming platforms; Arkansas bettors (would be able to place wagers via licensed interactive platforms).
- Secondary: State budget (tax receipts), Commission staffing and rulemaking workload, and criminal justice system if enforcement increases.
Notes
- For final legal effect, consult the enacted bill text and the official legislative status in the relevant state (this summary is based on the bill text and DFA fiscal statement provided).
Compiled from official sources — confirm details with the bill’s official record.
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