Debate over online casino bill centers on consumer protections, lottery impact; sponsor pulls bill to interim study

Representative Matt Duffield introduced House Bill 1861, a proposal to regulate interactive online casino gaming (iGaming) by authorizing Arkansas licensees to offer online slots and table games under Arkansas Racing Commission oversight. The bill drew extensive testimony from casino industry representatives, the Arkansas Scholarship Lottery director, a casino general counsel, and the Arkansas Problem Gambling Council.

Carlton Saffa (Saracen Casino Resort, Pine Bluff) and another Saracen representative, Carlton Saffa/Saffa (transcript names vary), argued the bill would displace offshore illegal operators who, they said, take money out of Arkansas, lack age and anti–money-laundering controls, spoof local brands and advertisements, and traffic in customer data. Saffa cited industry data and out‑of‑state experience (Michigan and West Virginia) to argue regulation plus a legitimate alternative caused offshore operators to leave those markets.

Sharon Strong, executive director of the Arkansas Scholarship Lottery, said the lottery has concerns that adding a new digital channel for casino operators could reduce lottery retail sales and thereby affect lottery-funded scholarships. Strong noted the lottery recently increased scholarship funding by $22.6 million and said the agency was concerned about “market share” effects and the lack of a comparable digital channel for the lottery under the bill.

Oak Lawn general counsel Walter Ebel testified against the iGaming authorization portion of the bill, arguing it would expand gaming statewide and harm physical-casino tourism and local economies by allowing wagers from any phone anywhere in Arkansas. He warned that local communities could lose sales tax and neighborhood benefits when wagers placed remotely are taxed in the casino host city rather than the bettor’s local county.

Enid Valentine of the Arkansas Problem Gambling Council described cases of people spending thousands monthly on illegal offshore apps and urged decisive action to protect Arkansans, while noting growing numbers of helpline calls related to these apps.

Sponsor Representative Duffield responded that iGaming already exists via offshore apps and that the bill would regulate and tax the activity while limiting it to Arkansas licensees and subjecting games and processes to Racing Commission approval. After extensive testimony and questions, Duffield requested and was granted permission to pull the bill and place it in an interim study to allow more time for discussion and coordination with stakeholders.

No committee vote on final passage occurred; the bill was withdrawn to interim study. Transcript testimony includes back-and-forth about impacts on lottery revenue, consumer protection measures, and whether criminal penalties could meaningfully affect offshore operators.