NCLGS Proposes Many Changes to Various Aspects of Gambling
In a sweeping report calling for standards, the National Council of Legislators from Gaming States hopes for a ban on credit cards and more reforms.
NCLGS suggest a ban on credit cards in online sports betting and casino play
Key Facts:
- NCLGS’s document outlines several ways to improve responsible gaming
- Organization calls for ban on credit card funding for iGaming and sports betting online
- NCLGS wants states to create best practices for gaming legislation in US
- Advertising and deposit limits have also been introduced among other proposals
The National Council of Legislators from Gaming States (NCLGS) has released a draft model for online gaming legislation that could reshape how states regulate and protect players in the growing iGaming industry.
This proposed framework includes comprehensive recommendations for player protections, tax structures, and operational guidelines designed to help states navigate the complexities of legalizing online gambling.
Credit Card Ban for Funding Online Accounts
A standout provision in the draft legislation is the NCLGS’s position on payment methods. The council is urging states to ban the use of credit cards for funding online gaming accounts, including both deposits and withdrawals.
While not an outright prohibition in language, the framework strongly discourages the use of credit cards, suggesting that operators adopt alternatives such as debit cards, prepaid cards, digital wallets, wire transfers, and other approved methods.
Crucially, the draft specifies that prepaid cards and digital wallets must not be funded with credit cards. This move is intended to curb excessive gambling driven by borrowed funds and promote responsible financial behavior among players.
Player Protections Take Center Stage
One of the most significant proposals in the draft is the emphasis on player protection measures. The NCLGS recommends that states create and implement a player health program aimed at increasing public awareness of problem gambling, promoting responsible gaming, and offering prevention, treatment, and recovery services. Each state’s regulatory body would oversee these programs, which could include:
- Launching public awareness campaigns on gambling addiction.
- Establishing treatment options for gambling disorders.
- Collaborating with other states to share best practices and data.
- Partnering with private or public organizations to assist in implementing these programs.
- Consulting with national experts on responsible gambling for ongoing improvements.
These measures underscore the council’s commitment to addressing problem gambling as online gaming continues to expand.
Stricter Advertising and Deposit Limits
The NCLGS draft also proposes several restrictions to address concerns about gambling’s impact on younger demographics and vulnerable populations. Key recommendations include:
- Limiting individual deposits to $20,000 within a 24-hour period.
- Prohibiting the use of “risk-free” language in advertising campaigns.
- Banning advertisements on college campuses to minimize exposure to the college-aged demographic.
- Requiring operators to appoint a dedicated responsible gaming lead to work closely with state regulators.
- Mandating operators to provide anonymized transactional data to state colleges and universities upon request.
These provisions reflect the council’s effort to balance industry growth with a strong commitment to responsible gaming.
Framework for State Regulation on Gaming
The NCLGS draft framework is designed to offer states a customizable starting point for introducing and regulating online gaming. The proposed legislation prioritizes preventing the cannibalization of retail gaming, maintaining strict regulatory oversight, safeguarding players, and protecting existing state-run lotteries and tribal gaming operations.
This model legislation is the product of collaboration among legislators from states with established gaming industries, including Michigan, Pennsylvania, and Massachusetts. NCLGS leaders such as Chair Steven A. Geller and President Shawn Fluharty spearheaded its development.
