Arkansas Bill Aims to Ban Sweepstakes Gaming While Expanding iGaming Legalization

Arkansas Bill Aims to Ban Sweepstakes Gaming While Expanding iGaming Legalization

By Michael Peterson

March 24, 2025 at 01:12 AM

Arkansas lawmakers introduced legislation aimed at transforming the state's gaming landscape through a dual-purpose bill that would prohibit sweepstakes gaming while legalizing iGaming operations.

Casino poker chips and cards

Casino poker chips and cards

The proposed legislation introduced by Rep. Matt Duffield (R-53) as HB 1861 targets two distinct objectives:

Sweepstakes Gaming Prohibition:

  • Bans dual-currency payment systems used for prizes or cash awards
  • Prohibits casino-style games including slots, video poker, and table games
  • Restricts lottery and sports wagering simulations
  • Allows non-cash prize sweepstakes to continue

iGaming Legalization:

  • Permits the state's three licensed casinos to offer online gaming
  • Limits each casino to one iGaming partnership
  • Requires casinos to maintain 51% or more of net gaming revenue in partnerships
  • Places regulatory authority with the Arkansas Racing Commission

The state's three eligible casinos are:

  • Saracen Casino Resort (Pine Bluff)
  • Oaklawn Racing Casino Resort (Hot Springs)
  • Southland Casino Hotel (West Memphis)

While the bill doesn't specify tax rates or license fees, it may mirror the state's current sports betting structure:

  • 13% tax on first $150 million
  • 20% tax on revenue exceeding $150 million

The companion Senate bill (SB 524) introduced by Sen. Dave Wallace (R-19) was withdrawn from the Senate Insurance and Commerce Committee, leaving the House version active in the House Judiciary Committee.

This legislation represents Arkansas's first attempt to simultaneously restrict unauthorized gaming while expanding licensed digital gambling operations.

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