Massachusetts currently has two iGaming pieces of legislation being mulled by committee members, but a November 19th deadline is looming as to whether to pass online casino gambling in the Bay State.
Cautiously Optimistic
Massachusetts has been cautious, deliberate, and calculating regarding its embrace of gambling. It took three years of legislative discussion before casino gambling was finally allowed in the Bay State back in 2011. Moreover, it took more than three years of consideration to pass mobile sports betting, eventually launching in 2023.
Therefore, the iGaming bills proposed by Senator Paul Feeney (SB 235) and Rep. Daniel Cahill (HB 332) have lingered in the Joint Committee on Consumer Protection and Professional Licensure longer than advocates had hoped. Yet, the deadline of November 19th of this year still provides plenty of time for one of these two iGaming bills to be approved.
Bill Details Include Tax Rate and Licensing Structure
The bills stipulate that the Massachusetts Gaming Commission (MGC) will be tasked with licensing applicants and governing the industry. As of this moment, reports are that a 20% tax rate on a platform’s online casino gambling adjusted gross revenue will be instituted. Each of the state’s three casinos will be able to partner with up to two online casino operators, while there will also be four untethered licenses for 10 iGaming licenses in total.
Although the bills would have to advance out of the Joint Committee on Consumer Protection and Professional Licensure, there has been pressure applied by pro-iGaming forces to do precisely that. David Prestwood, a government affairs manager at DraftKings, attended a recent hearing and made his case clear, estimating that iGaming would bring an additional $275 million in annual tax revenue to the state.
“This money may be especially critical for Massachusetts in the face of anticipated federal funding cuts and reductions in state and local aid,” Prestwood said at last month’s hearing.
Legislation Faces Delays and Debate
Although the iGaming platforms are completely sold on expanding their online casino gambling operations into another market, other factions remain vehemently opposed. Those in the unions whose members work at land-based casinos believe that online casino gambling may cannibalize their traffic and lower their bottom lines.
The conventional wisdom asserts that if people can stay home and gamble on a slot machine or a table game in the comfort of their own environs, then there will be much less need to visit local casinos to gamble.
Moreover, the land-based casino operators are often against it as well, despite getting a piece of the online action through third-party providers like Caesars, DraftKings, and FanDuel. The additional revenue they receive does not offset potential losses of foot traffic, where they make 100% of gambling revenue versus a partial share from online gaming.
Advocates Warn of Gambling Addiction
The groups that are warning against a spike in addictive gambling behavior also point out that iGaming does societal harm and that gambling should remain concentrated in land-based casinos.
“There’s all these friction points where the player has the chance to think twice about placing the next bet,” said Mark Stewart, a board member of the National Association Against iGaming, a coalition of casinos and unions that formed in January to fight online casino bills. “That doesn’t exist with iGaming. It’s just nonstop, constant action and 24/7 access.”
Massachusetts also runs one of the most successful lotteries in the nation, and state treasurer and lottery chair Deb Goldberg has been vocal about protecting the cash cow that netted nearly $1.2 billion in fiscal year 2024.
“If online gaming expands, we must ensure the lottery is supported and stays competitive,” Goldberg said in a statement. “Every dollar spent on private platforms could mean less for our cities and towns and early childhood education.”
