Massachusetts lawmakers heard arguments for and against legalizing online casinos at a public hearing on Monday.
The Legislature’s Joint Committee on Consumer Protection and Professional Licensure heard arguments on both sides for a pair of bills proposing to make Massachusetts online casinos legal.
Senate Bill S. 235 and its companion in the House, H 332, propose allowing online casinos to be run through the state’s 3 retail casinos. The 3 casinos, Encore Boston Harbor, MGM Springfield, and Plainridge Park, will be permitted to partner with two online operators. Additionally, the legislation will grant four more licenses not tied to the casinos, making a total of 10 licensed operators.
The state will set a tax rate of 20% on the revenue generated by the online platforms, with a fee of $5 million for a 5-year license. The proposal would also allow Massachusetts to join up with other states to pool gamblers, for example, in the multi-state internet gaming agreement (MSIGA) that allows poker players to compete across state lines.
Legislation To Control Unregulated Gambling, Say Betting Companies
Betting companies in favor of the legislation spoke at the hearing, declaring that online casino gambling is already prevalent in the state through unregulated platforms. David Prestwood, government affairs manager for DraftKings, told the committee, “Online casino gaming is already happening in Massachusetts, just not in a legal, regulated, or taxed environment.”
He added, “Massachusetts has an opportunity to lead on this issue, by enacting smart, well regulated, and reasonably taxed i-gaming legislation. The Commonwealth can both help protect its citizens and, while doing so, unlock hundreds of millions of dollars in new revenue.”
FanDuel’s James Hartman added that Massachusetts residents are already gambling at online casinos “to a tune of $7 billion per year.”
“On the other hand, the legal i-gaming market is one of the most highly regulated industries in America,” he said, providing strong consumer protections, age verification, and problem gambling tools as a matter of law.
“At the heart of the regulated i-gaming market is a commitment to responsible gaming,” Hartman said.
DraftKings committed to providing funds to state councils, including Massachusetts in the launch of its State Council Funding Program, launched in 2022 and expanded in 2023. The program has provided over $1.5 million over the last three years.
If the legislation is approved, the Massachusetts Gaming Commission (MGC) will oversee the regulation of the online casinos. Jordan Maynard, chair of the MGC, recently commented that the gambling industry is “a highway without speed limits, cars without seatbelt dingers.” Maynard went on to stress that it is “Regulators are who put the seatbelt dingers in.”
Opponents Warn Of Increased Problem Gambling
Brianne Doura-Schawohl, a problem gaming expert speaking on behalf of the Campaign for Fairer Gambling, warned lawmakers about the problems legalization could create. She called casinos the “fast food of gambling” and said the industry preys on “individuals who have an addiction.”
According to Doura-Schawohl, in Connecticut, where online casinos were legalized in 2021, data shows that 70% of revenue comes from 7% of players, many of whom were addicted or problem gamblers.
“You should consider this policy with eyes wide open,” she said. “It may result in more harm than good.”
If, after listening to the arguments on both sides, the committee decides to report the bills favorably, they will move to both chambers for discussion and a possible vote on the floor. The legislative session ends in Massachusetts in November, leaving plenty of time for lawmakers to debate the issue.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
