Casino gambling and sports betting are widespread across the U.S., with 30 states and Washington, D.C., currently offering mobile or online sports betting. However, only a few states permit online gambling, including games like slots and roulette.
New Proposals Aim to Reshape Massachusetts’ Gambling Industry
Massachusetts offers both online and retail sports betting, with retail betting launched in January 2023 and online betting following in March. However, unlike neighboring New Jersey and Pennsylvania, Massachusetts has yet to legalize online casino gambling.
A newly filed proposal seeks to change this by introducing iGaming to the state. Lawmakers are also considering new consumer protection measures, tax increases, and enhanced funding for problem gambling treatment. If approved, Massachusetts could join the limited number of states currently allowing legal online gambling.
At present, only seven states permit iGaming: New Jersey, Pennsylvania, Michigan, West Virginia, Rhode Island, Delaware, and Connecticut. Massachusetts hopes to become the eighth.
Two Bills Outline iGaming Legalization and Regulatory Framework
Lawmakers have introduced two bills—SD 2240 by Sen. Paul R. Feeney and HD 4084 by Rep. Daniel Cahill—proposing the legalization of online gambling. These bills would allow Massachusetts’ three land-based casinos to partner with up to two online gambling operators each, resulting in six Category 1 licenses. Additionally, four Category 2 licenses would be available to independent online gambling operators not tied to a physical casino.
According to the bills, each online gaming platform would operate under a distinct brand, with an option to introduce a secondary brand for online poker. The Massachusetts Gaming Commission would oversee licensing and regulatory enforcement.
The proposals also outline a wide range of online casino games, including slots, blackjack, poker, craps, and roulette. Operators seeking licenses would need to pay a $5 million licensing fee, valid for five years. The proposed tax rate for online gambling is 20%, aligning with the state’s current tax on online sports betting.
To promote responsible gambling, the bills call for operator training programs, customer behavior assessments, and intervention measures such as account restrictions for problem gamblers. The Massachusetts Gaming Commission would have the authority to impose fines, limit operations, or revoke licenses if operators fail to comply with these regulations.
The self-exclusion list for problem gamblers would not be publicly available, but licensed operators would have access to ensure compliance.
Other States Also Pushing for iGaming Legislation
Massachusetts isn’t the only state exploring online gambling expansion. Recent legislative efforts in New York, Indiana, and Wyoming highlight a growing trend toward legal iGaming.
Proponents argue that legalizing online gambling protects consumers by regulating the market and eliminating risks associated with unlicensed offshore operators. In contrast, black-market gambling platforms expose players to financial fraud, identity theft, and lack of legal recourse.
Massachusetts Proposal Seeks Higher Betting Taxes and Wagering Limits
In addition to the iGaming proposal, Sen. John F. Keenan has introduced SD 1657, a bill aimed at addressing gambling-related economic, health, and social concerns. The bill proposes:
- Wagering Limits: $1,000 per day and $10,000 per month for bettors in Massachusetts.
- Tax Increase: Raising the tax rate on betting operators from 20% to 51%.
- Compensation Restrictions: Prohibiting gambling operators from receiving a percentage of customer wagers or deposits.
- Increased Responsible Gambling Funding: Doubling the budget for responsible gambling programs from $1 million to $2 million.
While similar tax hikes have failed in the past, proponents argue that increased tax revenue could support public services and problem gambling initiatives.
The Future of iGaming and Betting Regulations in Massachusetts
The fate of these proposals now lies in the hands of lawmakers. If approved, Massachusetts’ gambling market could see significant changes, particularly with the potential introduction of iGaming. However, given past resistance to tax hikes, the outcome of SD 1657 remains uncertain.
Legalizing online gambling may have a better chance of success, as it would generate additional tax revenue and align Massachusetts with other states that have already embraced iGaming. Whether lawmakers will support these changes remains to be seen.