The National Council of Legislators from Gaming States (NCLGS) has released a draft of its Model Internet Gaming Act, aiming to provide a comprehensive framework for U.S. states considering the legalization and regulation of online gambling. This initiative seeks to harmonize regulatory standards across states, ensuring consumer protection and industry integrity.
Affiliates are often on the frontlines of promoting iGaming brands, so these rules directly affect how they create and distribute content. Non-compliance could lead to fines, loss of partnerships, or reputational damage.
The draft model provides a framework that could accelerate the legalization of online gambling in more states. For affiliates, this means new opportunities to enter emerging markets as states adopt the legislation. However, understanding and adapting to each state’s specific implementation will be critical to success.
Key Provisions of the Draft Legislation
The draft legislation addresses several critical areas:
- Taxation: Recommends a tax rate between 15% and 25% on gross gaming revenue, aligning with existing rates in states where online gambling is legal.
- Responsible Gaming: Mandates robust responsible gaming measures, including self-exclusion programs and resources for problem gambling.
- Licensing Requirements: Establishes stringent criteria for operator licensing to maintain high standards of security and fairness.
- Advertising Standards: Sets guidelines to ensure ethical marketing practices, prohibiting targeting of underage or vulnerable populations.
- Age Verification: Implements strict age verification processes to prevent underage gambling.
- Data Sharing: Encourages collaboration between operators and regulators to enhance oversight and compliance.
Prohibition of Sweepstakes Operations
A notable aspect of the draft is the explicit prohibition of unregulated sweepstakes gaming operations. Entities violating this provision could face fines ranging from $10,000 to $100,000 per infraction, with repeat offenders subject to increased penalties and potential imprisonment.
Public Consultation and Next Steps
NCLGS has opened the draft for public comment until December 31, 2024, inviting feedback from stakeholders to refine the legislation. A public hearing is scheduled during the NCLGS winter meeting in New Orleans, where further discussions will shape the final version.
Implications for Affiliate Marketers
Affiliate marketers in the iGaming sector should closely monitor the development of this model legislation. The proposed advertising standards and licensing requirements will directly impact marketing strategies and partnerships. Ensuring compliance with these evolving regulations is crucial to maintain credibility and operational viability in the U.S. market.
The legislation’s stringent licensing requirements for operators mean affiliates will need to carefully choose their partners. Working with unlicensed or non-compliant operators could result in affiliates being implicated in regulatory breaches. This increases the importance of due diligence in selecting reputable operators that adhere to these evolving standards.
By staying informed and adaptable, affiliates can navigate the changing regulatory landscape and continue to thrive. Affiliates who proactively comply with these regulations can position themselves as trusted, compliant partners in the iGaming industry. This credibility not only secures existing relationships but also attracts new operators seeking affiliates who align with regulatory standards.
