Arkansas lawmakers look to ban sweepstakes gaming and legalize online casinos

The SPGA released an official response to SB524 and HB1861, which would rule operating online sweepstakes casinos and sportsbooks that use dual-currency funding as a felony.

Arkansas lawmakers have begun pushing for both the legalization of iGaming for three land-based casinos and for the prohibition of online sweepstakes casinos operating within the Natural State.  

Sponsored by Senator Dave Wallace and Representative Matt Duffield, SB524 and HB1861 call for the creation of the Interactive Gaming Act, which would grant three land-based Arkansas casinos licenses to operate iGaming. 

Saracen Casino Resort in Pine Bluff, Oaklawn Racing Casino Resort in Hot Springs and Southland Casino Hotel in West Memphis currently operate online sports betting within the state. Arkansas would eventually go on to become the eighth state within the US to officially legalize iGaming.

If passed under its current language, the two pieces of legislation would also make operating online sweepstakes casinos and sportsbooks that use dual-currency funding a felony in Arkansas. 

In response, the Social and Promotional Games Association (SPGA) stated the proposals “echo anti-competitive efforts pushed by entrenched casino interests and represent a significant threat to businesses, innovation and a consumer’s freedom to choose what games they can play on their phones.”

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“We acknowledge the state’s role in overseeing interactive gaming, but these bills go too far. Social sweepstakes are not casinos. They offer free-to-play entertainment to millions of adults, with most users never spending money. Treating them as a public harm is misguided and unsupported by data,” the SPGA said. 

“The SPGA urges Arkansas lawmakers to reject this broad, punitive legislation and instead engage with stakeholders to create a balanced, informed policy. Don’t destroy a legal, thriving industry—and consumer choice—based on misinformation.”

On March 19, the New York Senate Racing, Gaming and Wagering unanimously passed bill S5935, which would officially prohibit sweepstakes operations within the Empire State. The proposed legislation in Arkansas will now head to a Senate vote, with the legislative session concluding on April 11. 

Kirk Geller

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