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New NCLGS Framework Proposes Penalties for Playing on Illegal Online Gambling Sites

- January 21, 2015 By Oliver Young -

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New NCLGS proposal includes penalties for players who play at unauthorized sites.

The National Council of Legislators from Gaming States (NCLGS) presented its new Policy Framework for Internet Gambling which was designed to be a guide to US states that are considering legalisation of online gambling or banning it completely.

One of the statements regarding the framework was given by Helene Keley, the NCLGS President Rep. of Delaware. In her press release was stated that “It’s time for states that are inclined to welcome Internet gambling to take an in-depth look at what the Framework has to offer.”

The framework took more than a year of hard work before it was released to the public. The NCLGS had special sessions at its winter meetings and it reviewed the final proposals and amendments that were supposed to improve the document.

Players Who Play at Unauthorised Sites May Face Penalties

The framework, which is six pages long, includes various topics such as player protections, taxation, licensing, geo-location, payment methods and etc. The information in the document can be used by both sates that plan to legalise iGaming and states that are considering banning online gambling.

One of the proposals that attracted a lot of attention was the one connected to playing on unregulated online gambling sites. NCLGS recommends penalties for both operators that allow unauthorised play and players who knowingly participate in unauthorised play. There are some examples of penalties that can be imposed and those included fines, closure of the account as well as confiscation of winnings.

The fines come as a no surprise to players after the latest online gaming bill that was proposed in the state of Mississippi includes player penalties as serious as jail time.

Nevertheless, NCLGS also included a list of recommendations on how to protect the players. Some of the covered topics in that area are standards for data protection, procedures for fair game play and fair and appropriate dispute resolution mechanisms.

This is Not the First Time NCLGS Releases Revised Regulation Proposals

The latest framework for internet gambling in the USA is not the first one to be released by the NCLGS. In November, 2014, the council published a draft of revised iGaming regulation proposals that were revised with the help of interested third parties.

That draft also included topics similar to the ones discussed in the latest framework. For example, some overlapping topics were protection of players, taxation, payment processing and government licensing.

Nevertheless, both that framework and the latest framework are not seen as a solution to the problems iGaming industry is facing. One of the main cons of the list is the lack of best practices that are recommended to operators and lawmakers. When it does provide some positive examples and proposals, then it doesn’t clearly state which practice is the best option.

In any case, it is understandable that NCLGS couldn’t cover all topics for all states since each state has its own laws and regulations which are very complex. However, this framework contains a vast amount of useful information which can definitely help regulators at least a little bit.

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