Massachusetts To Begin Discussions Of Legalizing Online Casinos
Massachusetts lawmakers are taking the next step to become the eighth state to legalize online casinos.
The state legislature’s Joint Committee on Consumer Protection and Professional Licensure will conduct a hearing on June 23 to discuss House Bill 332 and Senate Bill 235. The pair of bills, introduced by Sen. Paul Feeney and Rep. Daniel Cahill in February, would legalize Massachusetts online casinos.
MA iGaming proposal allows for up to 10 operators
Feeney and Cahill’s companion bills would authorize and regulate online casinos in Massachusetts. The Massachusetts Gaming Commission would oversee the industry, just like it does for retail casinos, sports betting and horse racing.
The bill would establish two licensure categories with upwards of 10 licenses available. All licensed operators would pay a 20% tax on adjusted gross revenue.
Each of the state’s three casinos could partner with two online casinos, creating six (6) Category 1 licenses. The commission could award up to four additional untethered Category 2 licenses.
Any operator receiving a Category 1 license could not receive a Category 2 license, and vice versa. All operators must have a distinct brand, and those partnering with a casino would have no obligation to co-brand according to their partnerships.
The commission would award five-year licenses with a $5 million licensing fee (and a nonrefundable $200,000 processing fee). It may also award one-year temporary licenses with a $1 million initial licensing fee. All operators could renew their licenses for $5 million for another five years.
MGC chair seeks federal oversight
With Massachusetts looking to create a regulated online casino industry, MGC chair Jordan Maynard told The Guardian that a regulatory body must prioritize protecting its citizens over increasing profits for taxpaying operators.
He likened the nationwide gambling industry, which includes 37 states with legal sports betting, to “a highway without speed limits, cars without seatbelt dingers.” He said that regulators mandated safety standards, such as seatbelt dingers, and not the car manufacturers.
Maynard also called for regulation to occur on a federal level, protecting citizens across all US markets. He spoke of establishing a nationwide advertising framework, creating nationwide exclusion lists and ensuring responsible use of artificial intelligence.
“If operators are using technology to target bettors, that technology can be used to promote healthy behaviors,” said Maynard. “And I believe that a way that happens quicker is for regulators to get involved on the issue.”
iGaming legalization slow to expand
Delaware and New Jersey were the first states to legalize online casinos in 2012 and 2013, but only a handful have joined them in the years to follow:
- Pennsylvania (2017)
- West Virginia (2019)
- Michigan (2021)
- Connecticut (2021)
- Rhode Island (2024)
Each year, the discussion reaches more states, though no others have taken the step to pass legislation. This year’s cast included Illinois, Indiana, Louisiana, Maryland and Wyoming.
Efforts to expand iGaming have met resistance from retail casino operators and advocates such as the National Association Against iGaming, which express concerns over online casinos causing addiction, harming low-income communities and cannibalizing brick-and-mortar casinos.
