iGaming across the United States (U.S.) is a booming industry for those states that participate, with predictions of 22.1% growth from 2023 to 2024, totaling $8.2 billion. States that participate have been able to finance public services, like healthcare and education, as well as infrastructure. With this marked influx of cash from taxed gross gaming revenue (GGR), it’s a wonder more states aren’t participating in the iGaming market.
The National Council of Legislators from Gambling States (NCLGS) began to develop a template for model iGaming legislation at their annual conference in July 2024. The group of lawmakers has now finished the drafted legislation and received public input. With no states legalizing iGaming in 2024, it’s more important than ever that legislators, operators, and customers coordinate to expand what stands to be a lucrative industry for all.
Current iGaming Landscape
In 2018, the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act (PASPA). Afterwards, individual states were left to regulate their own iGaming markets. Currently, only seven states allow online gaming: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Legal forms of iGaming include a combination of sports betting, online casinos, lotteries, poker, and bingo.
Estimates expect online gambling to generate $24.9 billion in revenue in 2024. It’s not surprising, then, that many states are discussing the option of legalizing online gaming. For example, in March 2024, the Maryland House of Delegates passed a bill to legalize online gaming in the state, but the bill died once it reached the State Senate.
NCLGS Model for iGaming Legislation
Politics are fickle, with proponents of iGaming looking to its economic potential while opponents are afraid of exacerbating gambling addiction and ostracizing physical casinos. This is why the NCLGS has developed a model to gain consensus and coordinate efforts across states.
The model legislation has suggested answers to many common questions asked by state lawmakers and citizens alike when looking to legalize online gambling including:
- Relationship between physical and online gambling locations
- Limited advertising guidelines
- State-run licensing board
- Age limit set at 21
- Ban on sweepstakes
- Specific rate of GGR allocated towards responsible gaming initiatives
The NCLGS hopes that by providing iGaming legislation informed by the experiences of member states that they will be able to create a cohesive online gaming community across the country. The NCLGS’s annual conference in July 2024 highlighted states’ concern over age verification, data sharing, and AML compliance. With the growth of online fraud, states and online gaming operators alike need to be wary of unregulated sites.
Overcome Challenges for States and Operators with Integrity
Integrity, a division of Aristotle, is here to help states and online gaming operators enter into what’s predicted to be the largest regulated online gaming market. Our orchestration approach to identity verification provides you with the peace of mind you need to be compliant with KYC and AML regulations while protecting your consumers.
- Integrity IDV-Direct: A web-based platform to verify the identity of online visitors across our database of 3.4 billion citizens in 135 countries. The platform is available through a single API allowing for an “integrate once, use anywhere” approach. This combines with several external gateways to deliver a best-of-class verification solution that leverages global data.
- Integrity AutoDoc and Integrity Document: We offer both automatic and manual document verification options to ensure that you’re compliant with local regulations and have a solution that fits your verification needs. Our partners and agents are ready to help and are tested regularly to find potential fraud in document review and identity verification.
- Integrity AML: Check consumer information against SSN dead rolls, OFAC, DFAT, UK HM Treasury, DEA, LEIE, Interpol, and numbers of other global financial watch lists. Integrity also checks for Politically Exposed Persons (PEP) that companies may need to track and provides a real-time flag and access to PEP information in the back office to determine true hits or false positives.
How can Integrity help you address expanding into new marketplaces and ensure your compliance with local regulations? Click the “FREE DEMO” button in the upper right corner and a representative will suggest the proper solution to meet your needs.