Fluharty is a leading voice among lawmakers in support of iGaming | News, Sports, Jobs

West Virginia House Minority Whip Shawn Fluharty, Democrat of Ohio, greets attendees at this week’s summer meeting of the National Council of Legislators from Gaming States in Pittsburgh on Wednesday. (Photo provided)

CHARLESTON – Efforts to expand access to iGaming and online betting while regulating the fledgling industry and protecting consumers are being led by a Democratic lawmaker in West Virginia, not a Republican.

Shawn Fluharty, Democrat of Ohio, currently serves as president of the National Council of Legislators from Gaming States and will take over as head of the organization in January. The bipartisan group works on issues related to gambling, such as lotteries, physical and online casinos, pari-mutuels (greyhound and horse racing) and the state and federal regulations governing those activities.

The NCLGC concluded its three-day 2024 Summer Session on Saturday at Rivers Casino in Pittsburgh. More than 300 participants, including 100 lawmakers from states across the country, attended the event. Topics included promoting responsible gaming, new and emerging types of gaming, the links between gaming and economic development, ensuring effective consumer protections, and more.

The biggest topic at the NCLGC summer meeting was iGaming and proposed iGaming model laws for other states. iGaming is a broad term for all online betting, such as sports betting, online casinos, and other games conducted via mobile devices or computers.

“We are working with legislators and regulators across the country to develop what we call a model law so that other states have a framework to follow,” Fluharty said.

According to LexisNexis, iGaming is only available in West Virginia, Connecticut, Delaware, Michigan, New Jersey, Pennsylvania and, most recently, Rhode Island.

Fluharty expects the industry to expand to other states as well.

But exemplary iGaming legislation will help other countries to implement it.

“I think we’re getting there in other states,” Fluharty said. “I think there was a bit of an education gap among legislators on this issue. … Now that I’m president, we’re working to close that education gap among the public and legislators. It’s one thing to say, ‘Hey, it makes money,’ but it’s another thing to dig into the details of why that’s a good policy. And if you shrink the black market and protect consumers with consumer protections that include aspects of responsible gambling that don’t exist in the black market, then that’s a good, common sense policy all around.”

“All eyes in the gaming world are on NCLGS as Del. Fluharty leads a national project to model iGaming legislation so lawmakers across the country can learn from states that have legalized it as they consider similar legislation in their own states,” NCLGS Executive Director Josh Faber said in a statement Friday.

West Virginia was an early adopter of sports betting and online casinos. House Bill 2934, passed by the House in 2019, created the West Virginia Lottery Interactive Wagering Act. The year before, the House passed Senate Bill 415, which created the Sports Lottery Wagering Act.

According to a 2023 financial report from the West Virginia Lottery, sports betting brought in about $5 million in revenue in fiscal year 2023, while interactive betting brought in about $20 million. West Virginia residents have access to several options, including BetMGM, BetRivers, DraftKings, Caesars Palace and FanDuel.

“Fortunately, in West Virginia, we’ve worked really hard to develop a good product that has generated hundreds of millions of dollars in revenue and, most importantly, new revenue without raising taxes. That’s something that should be talked about more when it comes to iGaming.”

“We were quick to embrace sports betting and iGaming, and now other states are looking at it and realizing this is a good idea and will generate hundreds of millions of dollars in revenue,” Fluharty continued. “And more importantly, it will help protect citizens from an unregulated black market that they are already gambling on. That is already underway.”

As House Minority Leader, Fluharty is used to leading opposition to the Republican supermajority in the House and bringing rhetorical fire to debates. But despite being in the minority, Fluharty has worked in a bipartisan manner in the legislature. The NCLGC’s leadership includes State Senator Jason Barrett (R-Berkeley) as secretary. And many successful gambling bills in recent years have had Fluharty as either a lead sponsor or co-sponsor.

“The good thing about them is that they are not what I would call divisive political bills,” Fluharty said. “They generally get support from both sides of the aisle, and that’s a rarity these days. I also think the fact that I’ve carved out this prominent role for myself as president of the national group gives me credibility in this area.”

One of the bills passed earlier this year with House Speaker Roger Hanshaw (R-Clay) and Fluharty co-signing was House Bill 5668, the Responsible Gambling and Research and Industrial Development Act. The bill allows West Virginia University access to the gambling data collection for research purposes.

“Now we’re taking an R-1 research institution like West Virginia University and creating a new program where students can come to WVU and really be at the forefront of this ever-evolving field and potential future jobs,” Fluharty said. “It’s an incredible opportunity and I’m glad we took it.”

Concluding the NCLGC summer meeting, Fluharty said members continue to work on iGaming expansions while proactively working on the next generation of iGaming options and looking at how to enable consumers to participate while keeping them safe.

“I think now that we’re in this period of reflection, player protection is going to be a top priority going forward. And as new data comes in and technology changes, I think the regulatory side becomes a thorny issue and something we’ll look at more closely,” Fluharty said.