Online Gambling License in Alaska

Alaska is one of the US states with the most stringent gambling laws in this country, maintaining a conservative stance on various gambling operations. It means that all forms of commercial online gambling entertainment are currently illegal in the 49^th state.

The 2023 Alaska Statutes Title 5 bans most sorts of gambling in the state, including casino games. However, the Alaska Gaming Reform Act allows charitable gaming activities.

The Department of Revenue’s Tax Division enforces the Alaska Gaming Reform Act that regulates Alaskan charitable gaming. The Act also defines who may conduct these activities and which ones are legal.

The Department of Revenue’s Tax Division issues licenses and permits, reviews gaming activities to ensure they comply with the Act requirements, and investigates complaints. The Tax Division also collects and deposits taxes, license fees, pull-tab taxes, and net proceeds fees into the state’s General Fund.  

Gambling Legislation in Alaska: Quick Overview  

The charitable gaming laws in Alaska started evolving in 1960 when the Alaska Legislature legalized gaming and tasked the Department of Revenue with overseeing all gaming operations in the state. In 1984, the Department allowed pull-tabs, and four years later, in 1988, the Legislature legalized operators and pull-tabs and even increased prizes.

In 1993, the Department of Revenue organized a separate gaming program. The same year, the National Indian Gaming Commission (NIGC) authorized the construction of a land-based casino on tribal land near Klawock. Although the state passed a bill prohibiting casino games, the NIGC opened two bingo halls in Metlakatla and Klawock.

An interesting shift occurred in 1995 when the Alaska Legislature approved gambling on cruise ships, provided these ships paid a fee. This decision helped Alaska generate over $500,000 in revenues that year. Unfortunately, this law expired and was never renewed.

On May 16, 2016, the Alaska Gaming Reform Act was adopted to regulate the Charitable Gaming Program. That same year, Governor Bill Walker signed Senate Bill 157, which clarified that arcade-style games are not gambling but games of skills. Arcade games that give tokens or any other type of reward that can be redeemed for non-cash prizes, like candies or toys, are not considered gambling.  

Types of Regulated Gambling Activities in Alaska

The types of gambling that are regulated by the Alaska Department of Revenue’s Tax Division are:

Lotto Alaska

Lotto Alaska is a limited state lottery founded in 2017 to support local charitable and nonprofit organizations. Chase the Ace Lottery from the Lotto Alaska is permitted by the state’s charitable gaming law.

If you want to play Lotto Alaska’s Chase the Ace Lottery and donate to a good cause, you can buy tickets in person from a physical location or online. You must be physically located in Alaska if you want to purchase an online ticket.

It’s worth noting, though, that if you want to participate in one of the popular multi-state lotteries like Powerball or Mega Millions, you cannot.     

Tribal Gaming

Although there are no commercial land-based Class III casinos with slots and table games, you can still visit Class II gaming establishments that operate under the National Indian Gaming Commission (NIGC) supervision. MIC Gaming Hall is located in Metlakatla, and KCA Bingo is in Klawock. These gaming facilities offer bingo and pull-tab games.  

Sports Betting

Despite the fact that online sports betting is not legal, there are some annual outdoor contests you can participate in and bet on. Dog mushing is one of the most popular state sports, so these competitions are very popular, too. Charitable and nonprofit organizations are allowed to accept wagers on these races. However, these contests must follow the state’s regulations, and all proceeds must go to charity.  

Daily Fantasy Sports

Finally, Daily Fantasy Sports (DFS) are defined as games of skills, so they are legal. You must be at least 18 years old to play daily fantasy sports in Alaska. You can play various fantasy sports games, like NBA, NHL, NFL, or MBL, on reputable DFS platforms like FanDuel and DraftKings.

The Department of Revenue’s Tax Division Regulatory Framework

Since online gambling is prohibited in Alaska, we can focus only on charitable gaming. The Alaska Gaming Reform Act, which is found in Title 5, Chapter 15 of the Alaska Statutes, regulates Alaska’s Charitable Gaming Program. Title 15 Chapter 160 of the Alaska Administrative Code (regulation) implements the Act.

The Act specifies the range of charitable organizations that are allowed to conduct gaming operations and which activities are permissible. The gaming activities that are considered legal in Alaska are bingo, raffle/lottery, and the sale of pull-tabs. These activities aim to generate financial benefits to support charitable, educational, and religious causes.  

Eligible organizations for charitable gaming include civic or service groups, religious, charitable, veterans, fraternal, educational, political, or labor organizations. Police and fire departments, outboard motor associations, dog mushers’ groups, fishing derbies, and nonprofit trade associations also qualify.

The Charitable Gaming Program, managed by the Alaska Department of Revenue’s Tax Division under the Gaming Reform Act, issues permits and licenses. Qualified organizations can get a permit yearly with fees from $20 to $100. Licenses are also renewed yearly, with fees between $500 and $2,500. Pull-tab distributors pay a 3% monthly tax. Additionally, licensed organizations with over $20,000 in gross income must pay a 1% annual fee on net proceeds.

FAQs about Online Gambling in Alaska