Proposed Standards for Online Gambling Regulations Published by Organization of US Legislators

The National Council of Legislators from Gaming States (NCLGS), a non-bipartisan organization of U.S. state lawmakers who are themselves members of gaming regulation committee in their respective state legislative houses, has published a compilation of gaming policies that the organization proposes as standards for online gambling legislation.

The NCLGS asserts that the compiled standards could serve as model to lawmakers, yet adaptable to the emerging needs, inclinations, and technology developments in each state.

In line with such purpose, the NCLGS policy framework covered ten key legislative priorities: Player Protection Policies – Advocate laws that institute high standards for common regulations, technological attributes, testing procedures and data protection, as well as recommend the institution of systems for reasonable and proper dispute resolutions, fair game plays, disclosure of operator policies, and establishment of advertising restrictions pursuant to federal and/or state laws.

Problem Gambling Measures – Constitute standards for best practices observed in ensuring responsible online gambling, in relation to staff training, customer assistance, research, funding, self-exclusion, free play offers, website features, advertising and promotional strategies. NCLGS urges states to adopt suitable pro-active measures in detecting problem gambling behaviors and in sharing self-exclusion lists.

Taxation Rates, Methods, and Laws – The approach recommended is for the formulation of taxation policies and methods that conform to the gambling market, size of population, demographics, whilst compliant with federal laws.

Licensing Standards for Operators and General Service Providers – These are proposals to make a distinction between licensed operators and general service providers, in order to properly implement suitability determination, i.e. character, criminal records, trustworthiness, competency, and financial capability, and to properly establish those that need not secure service provider license.

Enforcement – Institution of policies deemed as necessary additions to a state’s existing anti-fraud and anti-money laundering laws, to ensure that the latest tools or enhancements are in place in policing, combating, and preventing money laundering activities, cheating, collusion, hacking, and other illegal technological concerns.

Processing of Payments – Recommend among others, laws that will limit the use of debit and credit cards, or the accessibility of credit facilities for online gambling activities. There could also be policies that mandate state regulators to determine the best e-payment methods that adapt quickly to changes in technology, and to implement amount limits for cash transactions and best fund protection medium such as trusts and sureties.

Verification of Player’s Identity, Age, and Geo-Location – Policies must cover legal age, location and ID verification standards, and mandates for confining geo-location within a state’s jurisdiction. Address violations by adding provisions that prescribe penalties to those who intentionally engage in illegal play.

Regulatory Body – In giving authority to online gambling regulators, there should be general policy guidelines, and not necessarily specific details that, give the gaming authority the capability to maintain sound regulations that can immediately adapt to technology innovations and environmental changes.

Multi-Jurisdictional Compacts – The NCLGS proposes policies that require multi-jurisdictional agreements to have qualities that will do away with congressional approval, allow legal participation of tribal governments, as well as take into consideration laws observed by compacting states. Choice and Legality of Internet Gambling Games – Laws must give each state, including the tribal governments within, freedom to decide the types of game permitted within its borders.

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