Fluharty a leading voice among lawmakers in support of iGaming

West Virginia House Minority Leader Shawn Fluharty, D-Ohio, welcomes attendees to the National Council of Legislators of Gaming States Summer Meeting in Pittsburgh on Wednesday. (Photo provided)

CHARLESTON — The effort to expand access to iGaming and online gambling while regulating the fledgling industry and protecting consumers is being led not by a Republican in West Virginia, but by a Democratic lawmaker.

House Minority Leader Shawn Fluharty, D-Ohio, now chairs the National Council of Legislators of Gaming States, having taken over as chairman of the organization in January. The bipartisan group works on issues related to gaming, including lotteries, land-based and online casinos, pari-mutuels (greyhound and horse racing), and state and federal regulation of these activities.

The NCLGC wrapped up its three-day 2024 Summer Meeting on Saturday at Rivers Casino in Pittsburgh. More than 300 participants, including 100 legislators from states across the country, attended the event. Topics included promoting responsible gaming, new and emerging forms of gaming, the connections between gaming and economic development, providing effective consumer protections, and more.

The biggest topic at the NCLGC Summer Meeting was iGaming and the proposed iGaming model legislation for other states. iGaming is a broad term for all online wagering, such as sports betting, online casinos, and other games played via mobile devices or computers.

“We’re working with legislators and regulators across the country to create what we call model legislation so that other states have a framework that they can build on,” 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 sector to expand into other states as well.

But model legislation for iGaming will help other states with implementation.

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

“All eyes are on NCLGS in the gaming world as Del. Fluharty leads a national project to model iGaming legislation so lawmakers across the country can learn from states that have legalized as they consider 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 legislature in 2019, created the West Virginia Lottery Interactive Wagering Act. The year before, the legislature 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 2023, while interactive betting brought in about $20 million. West Virginians have access to several options, including BetMGM, BetRivers, DraftKings, Caesars Palace and FanDuel.

“Fortunately, in West Virginia, we’ve worked very hard to produce 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 discussed more when it comes to iGaming.”

“We’ve moved quickly on sports betting and iGaming, and now other states are looking at it and realizing, based on states like West Virginia, that this is a good idea and it’s going to bring in hundreds of millions of dollars in revenue,” Fluharty continued. “More importantly, it’s going to help protect voters from an unregulated black market where they’re already playing. It’s already happening.”

Fluharty, as House Minority Leader, is accustomed to leading the opposition to the Republican supermajority in the House and injecting rhetoric into debates. But despite being in the minority, Fluharty has operated in a bipartisan manner in the Legislature. NCLGC’s leadership includes Sen. Jason Barrett, R-Berkeley, as secretary. And many successful gaming bills in recent years have had Fluharty as a lead or co-sponsor.

“One good thing about them is that they’re not what I would call divisive political bills,” Fluharty said. “They generally have support from both sides of the aisle, which is a rarity these days. I also think the fact that I’ve worked my way up to this high-profile role as chair of the national group brings credibility to the space.”

One of the bills passed earlier this year with House Speaker Roger Hanshaw, R-Clay, and Fluharty as co-sponsors was House Bill 5668, the Responsible Gaming and Research and Industrial Development Act. The law gives West Virginia University access to gaming 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 space and potential jobs of the future,” Fluharty said. “That’s an incredible opportunity and I’m glad we jumped on it.”

As the NCLGC Summer Meeting draws to a close, Fluharty said members continue to work on iGaming expansions while being proactive about the next generation of iGaming choices and how consumers can participate while protecting them.

“I think as we go into this reflective period … player protection remains paramount going forward, and as new data comes in and technology changes, I think regulation is going to be a hot topic and something we’ll continue to look at,” Fluharty said.

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