NCLGS Releases Model Internet Gaming Act Draft

16 October 2026

The National Council of Legislators from Gaming States (NCLGS) has released a draft Model Internet Gaming Act to provide state lawmakers with a framework for regulating online gambling with greater consistency across jurisdictions.

As the iGaming industry grows, the NCLGS—an organization comprised of state gaming regulators and lawmakers—saw the need to offer a model system that would promote uniformity. To that end, the organization developed comprehensive draft legislation, which it made public just ahead of its winter meeting in New Orleans, to solicit public feedback on what it hopes will be a blueprint for state regulations.

The draft offers sweeping new terms for how states can manage iGaming, with changes in everything from tax rates to licensing, from consumer protections to how sweepstakes-based casinos are defined and handled.

Key Tax and Licensing Proposals

The NCLGS draft introduces several significant recommendations for how states can approach the regulation of online gambling:

Most prominent is a proposed 15% to 25% tax rate on iGaming revenues. The wide range reflects the variation in tax rates seen in iGaming jurisdictions so far, but the NCLGS hopes the proposed range can work as a standard figure that better addresses the changing realities of state gaming.

Rather than lumping online gambling businesses into a single regulatory category, the NCLGS draft creates separate licenses for suppliers, operators, and platforms, with one license not interchangeable with another. Furthermore, the proposed program envisions a simplified licensing process for existing gaming operators, allowing companies with current licenses in other states to obtain temporary iGaming permits more efficiently.

Consumer Protections and Regulatory Overreach

For all the nod to the innovation and business growth of online gambling, the draft Model Internet Gaming Act also includes strict measures to protect consumers and guard against abuse.

Under the proposed law, debit and credit cards would be prohibited as deposit and withdrawal methods for iGaming sites. Though not a blanket anti-internet-gambling move, the approach is in line with existing credit-card restrictions on online gaming in some jurisdictions.

The draft also addresses online sweepstakes casinos. To regulate such operations, which occupy a legal gray area as hybrid gaming and sweepstakes providers, the NCLGS draft proposes clear definitions and potential prohibitions as part of state iGaming laws.

Fast-Track Process for Existing Licensees

Multi-jurisdictional operators looking to enter new iGaming markets could find a speedier path under the NCLGS draft. The model law recommends a streamlined application process for companies already licensed and in good standing for sports betting in another state. The proposal suggests that these operators could qualify for an abbreviated application process.

Room for Adaptation Across Jurisdictions

State lawmakers and regulators can expect to have considerable latitude to adapt the NCLGS principles to local needs. Though expecting that many states will use the NCLGS template, the council acknowledges that final legislation might vary by jurisdiction. "We recognize that each state is going to have its own unique gaming laws and its own history with gaming law," explained NCLGS Executive Director Marcrae Cruz. "But if the model act can provide a starting point and a roadmap for how these laws are put together, we think it's going to be beneficial to jurisdictions."

The model act represents the culmination of months of work by the NCLGS, with the council ultimately developing a framework that aims to balance operator innovation with necessary consumer protections.