Massachusetts lawmakers are considering a move to legalize online casinos.
A pair of bills, proposed by State Sen. Paul Feeney and Rep. Daniel Cahill, would authorize The Bay State's three land-based casinos to each team up with two operators to launch online gambling platforms.
SD 2240 and HD 4084, collectively known as the "Massachusetts Internet Gaming Act,” lay out a plan for the state's casinos to hold Category 1 licenses, allowing them to partner with online operators without the need for shared branding.
Additionally, up to four other companies could obtain licenses to run online casino platforms independently. These Category 2 licenses would allow non-casino companies to enter the market without a physical presence in the state.
If approved, Massachusetts could see a range of online casino games, including blackjack, poker, roulette, and slots. License-holders would have the flexibility to either offer a single online casino brand or separate brands for general casino games and online poker.
What Does the Massachusetts Internet Gaming Act Call For?
The bills propose a 20% tax rate on online casino operations. License holders would pay $5 million for an initial five-year term, with subsequent renewals costing the same amount. This move aligns Massachusetts with the trend of expanding legal gambling options.
The Massachusetts Gaming Commission (MGC) will oversee the licensing and regulation of all online gaming activities. It can also forge partnerships with other states or countries to collaborate on internet gaming, similar to the Multi-State Internet Gaming Agreement (MSIGA), which already links five U.S. states for online poker, including:
- Nevada
- Delaware
- Michigan
- New Jersey
- West Virginia
Pennsylvania is on the verge of being added to the list.
A major aspect of the proposed bills is Massachusetts' potential involvement in MSIGA. By entering this shared player network, Massachusetts could enhance its online poker options by connecting with other member states. This partnership could also boost player numbers, making online casino games more appealing with larger prize pools and quicker gameplay.
List of States Considering Legalizing Online Casinos is Growing
Currently, only seven states have legalized online casinos: New Jersey, Pennsylvania, Michigan, West Virginia, Delaware, Rhode Island, and Connecticut. However, the latter three offer limited options, with two or fewer online gaming platforms each.
But Massachusetts is now part of a growing number of states where lawmakers are proposing the legalization of online casinos.
The list includes Indiana, Maryland, and Wyoming. Lawmakers in all three states have filed bills that would legalize online gaming. Hawaii Senator Ron Kouchi's SB 1507 would set up the Hawaii Lottery and Gaming Corporation to hire an online gaming provider to offer various gambling options like lottery, poker, and casino games.
In New York, they’re not only considering making online casinos legal but also adding three traditional casinos in and around Manhattan.
A bill that would’ve allowed casino operators to run online games in Virginia was delayed in the Senate on Tuesday, with legislators saying it needed “further study.”
Meanwhile, in New Jersey, residents can already play online casino games, but now lawmakers are taking aim at sweepstakes casinos and social gaming sites. Assemblyman Clinton Calabrese introduced Assembly Bill 5196. It would classify sweepstakes casinos and social casinos, which allow people to play free casino games for cash or prizes, as internet gaming operators.
What’s Next for the Massachusetts Online Casino Bills?
Rep. David K. Muradian Jr. recently said that looking into online gaming is a smart move for the state, especially because online sports betting is doing well and gambling is bringing in a lot of money.
But others aren’t as optimistic about it. Representative David K. Muradian Jr. has been quoted saying, “Realistically, the process to pass iGaming could take a few years.”
The structure of the online casino bills follows the successful model used for online sports betting, which Massachusetts legalized in 2022 and has since experienced significant revenue growth.
Because of that success, lawmakers are also considering sweeping changes to its sports betting regulations, including raising the state’s online betting tax rate from 20% to 51% and imposing strict financial limits on bettors. So, there is a lot for them to consider.
The success of this legislative effort will depend on how lawmakers weigh the benefits of increased tax revenue against concerns about consumer protection and the impact on retail casinos. However, with sports betting thriving and neighboring states pushing forward, Massachusetts lawmakers may feel the pressure to push it through.
