In a significant development for the Natural State’s gambling landscape, Arkansas lawmakers have introduced bipartisan legislation that aims to simultaneously legalize online casino gaming and crack down on unregulated sweepstakes operations. The companion bills – Senate Bill 524 and House Bill 1861 – represent a strategic move that could position Arkansas among states embracing the digital gambling revolution while addressing concerns about unregulated gaming.
The Bipartisan Push for iGaming Expansion
Introduced on March 19, 2025, the twin bills have garnered support from 14 legislators across party lines. Senator Dave Wallace leads the Senate effort while Representative Matt Duffield champions the House version. This coordinated approach signals strong legislative interest in reshaping Arkansas’s digital gambling ecosystem.
The proposed legislation would create the “Interactive Gaming Act,” allowing the state’s three licensed casinos to expand into online operations. Saracen Casino Resort in Pine Bluff, Oaklawn Racing Casino Resort in Hot Springs, and Southland Casino Hotel in West Memphis – which already operate legal online sportsbooks – would each be eligible for one iGaming license.
The Arkansas Racing Commission would oversee regulation of this new market, though interestingly, the current bills don’t specify proposed tax rates or license fees. According to reports, Saracen Casino Resort had previously submitted a direct request to the commission seeking authorization for iGaming operations last year, suggesting industry pressure has been building for this expansion.
Current Gambling Framework in Arkansas
To understand the significance of this legislative push, it’s worth examining Arkansas’s existing gambling structure. The state has taken a measured approach to gambling expansion, with sports betting only becoming legal after voters approved a measure in November 2018. The first legal sports wagers were placed in July 2019 at Oaklawn Racing Casino Resort.
While the three licensed casinos now operate mobile sports betting apps available statewide, no legal online casino options currently exist for Arkansas residents. This places Arkansas behind eight other states that have already embraced iGaming, including New Jersey, Pennsylvania, and Michigan. Online casino gambling typically generates significantly more tax revenue than sports betting in states where both are legal.
Targeting Sweepstakes: The Dual-Currency Controversy
A central focus of the proposed legislation is addressing sweepstakes operations. The bills define sweepstakes using language similar to other states – any online or mobile game, contest, or promotion that “utilizes a dual-currency system of payment that allows the player to exchange the currency for a prize, award, cash or cash equivalent” and simulates casino-style games, lottery games, or sports wagering.
Notably, the legislation wouldn’t ban sweepstakes entirely. Licensed casinos would still be permitted to offer such products, and unlicensed social games or sweepstakes that don’t award cash or cash equivalents would be excluded from the prohibition. However, operating unregulated online casinos, sportsbooks, or sweepstakes would become a felony.
Arkansas lawmakers have framed this action as urgent, with the bills including an emergency clause stating that “unlicensed, unregulated and untaxed casino-style and sports wagering offerings are an ever-growing threat to the citizens of Arkansas”. This language mirrors concerns expressed in other states tackling similar issues.
The Multi-State Movement Against Sweepstakes
Arkansas isn’t alone in its effort to regulate sweepstakes operations. Several states have recently taken similar steps: In New York, State Senator Joseph P. Addabbo Jr. introduced Senate Bill 5935 in early March 2025 to ban sweepstakes casinos operating outside state regulations. If passed, platforms using dual-currency systems that allow players to win real money could face significant fines and legal action.
New Jersey and Mississippi have also introduced measures aimed at limiting sweepstakes gaming companies. Florida has implemented crackdowns as well, suggesting a growing national trend against these operations.
This movement has faced pushback from industry groups. The Social & Promotional Games Association (SPGA) has argued that sweepstakes are promotional tools rather than gambling, and that outright bans could establish a problematic precedent.
Economic Benefits and Education Funding
The Arkansas legislation explicitly connects online gambling regulation to economic development and education funding. The bills state that legalizing and regulating online gaming can boost economic development while supporting higher education institutions and affiliated nonprofits.
This act is immediately necessary to ensure that institutions of higher education and their affiliated nonprofit organizations can financially support their student-athletes and athletic programs, which will bolster economic development, education and commerce in the State of Arkansas.
This approach aligns with broader trends in the gambling industry, where regulatory frameworks often direct tax revenue toward specific public benefits. The economic impact of regulated online gambling can be substantial – in the UK, the iGaming industry is projected to exceed €12.60 billion in revenue for 2024, with gambling and betting duties amounting to £3.5 billion in 2023-2024.
Beyond direct tax revenue, the online gambling industry creates jobs across multiple sectors. In the United States, the gambling sector has generated over 1.8 million jobs both directly and indirectly, spanning technology support, marketing, design, security, legal, and accounting services.
Regulated gambling can also boost tourism, with visitors spending money on accommodation, food, and entertainment, thereby supporting local businesses.
The Growing Cryptocurrency Connection
While not directly addressed in the Arkansas legislation, cryptocurrency gambling represents an increasingly important segment of the online gaming market that state regulators will likely need to address. The global crypto gambling market has expanded dramatically from $50 million in 2019 to approximately $250 million in 2024 – a compound annual growth rate of nearly 38% over five years.
Bitcoin dominates this space with a 73.3% market share, followed by Ethereum at 14.5%, Litecoin at 6.8%, Tether at 3.2%, and Dogecoin at 2.7%. Crypto betting volume has seen remarkable increases, with cryptocurrency transactions now accounting for nearly 30% of all wagers, up from 20% in 2022.
As states like Arkansas consider expanded online gambling regulations, addressing cryptocurrency options may become increasingly important for comprehensive oversight.
Political Path Forward
An interesting aspect of the Arkansas legislation is its relationship to executive approval. Governor Sarah Huckabee Sanders’ endorsement would not be strictly necessary for the bills to become effective. According to the language in the text, if approved in both chambers, either bill would take effect if the governor did not veto it within a specific timeframe or if a veto was overridden.
The bills have been referred to committee stage in their respective chambers. With the Arkansas legislative session scheduled to conclude on April 11, 2025, lawmakers have a relatively short window to advance the legislation through the process.
If passed, this legislation would mark a significant expansion of gambling options for Arkansas residents while establishing clearer boundaries for what constitutes legal online gaming in the state. The dual approach of expanding regulated options while cracking down on unregulated alternatives represents a comprehensive strategy that could reshape Arkansas’s gambling landscape for years to come.
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