The National Council of Legislators from Gaming States (NCLGS) has proposed model legislation for states considering legalizing online gambling. The draft includes a suggested 15% to 25% tax rate and a ban on credit card deposits. The proposal is designed to provide a framework for states to build their own legislation while incorporating successful practices from other states.

It calls for strict oversight to protect consumers and weed out unsavory individuals and companies. The legislation also recommends establishing a government agency to regulate online wagering if one does not already exist. The model limits deposits to $20,000 in any 24 hours and prohibits using credit cards to fund gambling accounts.

Model online gambling legislation framework

The suggested tax rate range is a starting point for discussions and is above what some states charge but far less than others. Shaun Fluharty, a West Virginia Democratic state delegate and president of the NCLGS, said the group aimed to provide best practices for states struggling to pass online gambling legislation.

He mentioned that Maryland, Ohio, and Louisiana have been considering their own measures. David Rebuck, the retired head of New Jersey’s Division of Gaming Enforcement, advised the lawmakers’ group on the proposed legislation. He predicted that more states will seriously consider internet gambling in the new year as budget pressures mount.

The group’s proposal does not attempt to set national standards, as states primarily regulate gambling. Next week, the model legislation will be discussed at the NCLGS winter meeting in New Orleans.