Arkansas Bill (HB 1861) Proposes iGaming Legalization and Sweepstakes Ban

Bill Overview and Core Provisions

The bill also cracks down on sweepstakes games using two currencies, where one can be swapped for cash or equivalents. It doesn’t touch sweepstakes with non-cash prizes.

Another piece allows lotteries to fund Name, Image, and Likeness (NIL) programs for college athletes, splitting proceeds between winners and state university sports groups.

Illegal online casino or sports betting operations would become a Class D felony. The Arkansas Racing Commission would oversee iGaming regulation and licensing, though the bill skips details on tax rates or fees, hinting they might mirror the current online sports betting structure.

A Senate version, SB 524, was filed by Senator Dave Wallace (R-Leachville) but withdrawn from the Senate Insurance and Commerce Committee.

HB 1861 sits with the House Judiciary Committee as of March 21, 2025, with review likely in April after the legislature’s spring break. Carlton Saffa, market director at Saracen Casino Resort, says the bill aims to shut down unregulated, untaxed offshore online casinos. Oaklawn Racing Casino Resort, however, opposes iGaming legalization, citing it as poor public policy.

Legislative Context and Stakeholders

HB 1861 marks Arkansas’s latest gambling push. Online sports betting launched in March 2022 after voters approved Amendment 100 in 2018, allowing casinos to expand beyond in-person games. By December 2024, the state’s three sportsbooks, Saracen’s BetSaracen, Oaklawn’s Betly, and Southland’s Bet365, handled $48.6 million, per Arkansas Racing Commission data, with a 13% tax on net revenue yielding $5.2 million for the year.

iGaming’s been off-limits, leaving a gap filled by offshore sites, estimated at $500 million annually in Arkansas wagers, per industry figures. This bill seeks to claim that cash for the state.

Support spans party lines. Senate President Pro Tem Bart Hester (R) and several Democrats back HB 1861, alongside Duffield. Saffa argues it’ll curb illegal operators flooding the market. But Wallace’s withdrawal of SB 524 hints at Senate hurdles—possibly tied to Oaklawn’s stance or broader concerns.

Oaklawn’s opposition splits the casino trio, with Southland staying quiet so far. The NIL lottery angle could draw education and sports advocates, though it risks muddying the debate. Past gambling bills, like 2023’s failed casino expansion push, stalled over tax splits and local control, suggesting a rocky path ahead.

The bill’s emergency clause flags urgency. It cites unregulated online gambling as a growing threat and NIL funding as critical for economic and educational growth.

If passed, this could speed rollout, potentially by late 2025. The Racing Commission, already managing sports betting, would draft iGaming rules, license terms, tech standards, and player checks. Without tax specifics, lawmakers might lean on the 13% sports betting rate or tweak it, a detail likely hashed out in April’s Judiciary Committee talks.