New NCLGS Framework Calls for Player Penalties for Playing on Unauthorized iGaming Sites

The National Council of Legislators From Gaming States (NCLGS) has adopted its Policy Framework For Internet Gambling designed to offer guidance to US states that are both considering regulating and prohibiting online gaming.

During a special session at its Winter meetings, the NCLGS reviewed the final round of proposed amendments and finalized the framework that was more than a year in the making.

“It’s time for states that are inclined to welcome Internet gambling to take an in-depth look at what he Framework has to offer,” NCLGS President Rep. Helene Keley of Delaware stated in the press release.

Player Penalties

One recommendation made by the NCLGS is that legislators authorize regulators to impose penalties on players caught playing on unauthorized igaming sites. The sample penalties recommended include “fines, account closure, and confiscation of winnings.”

The latest igaming bill to be proposed in Mississippi also contains player penalties which include jail time.

The framework promotes standards for legislators and regulators to reference when considering both regulating and prohibiting online gaming. The framework also encourages those states entering into multi-jurisdictional agreements to adopt equivalent standards to allow for “cooperation in regulatory and law enforcement investigations enforcement of findings and criminal prosecutions.”

Included the framework are general guidelines for player protections, problem gambling law enforcement, payment processing, Know Your Customer (KYC) and multijurisdictional agreements.

The Framework Is Not A Turnkey Solution

While the framework provides recommendations on what topics to consider when crafting online gaming regulations and legislation, it does not provide a list of best practices. For example, the framework makes a recommendation that legislators should consider how to best protect players funds, and though it provides some examples to consider, it does not recommend any particular practice as being the best.

The complexity of laws and regulations in each state undoubtedly makes providing specific recommendations difficult; however, it is this type of knowledge that many lawmakers would find useful.

NCLGS is the only non-partisan organization of state lawmakers that meets on a regular basis to discus issues in regard to gaming. NCLGS does not support or oppose gaming, but supports effective regulation and believes that decisions related to gaming should be made by the citizens of the individual states and their elected officials.