Massachusetts lawmakers will open discussions next week on legalizing online casinos.
Legal Sports Report reported that the Joint Committee on Consumer Protection and Professional Licensure will examine House Bill 332 and Senate Bill 235 during a June 23 meeting.
Massachusetts sports betting is already legal, but unlike several of its northeastern neighbors, it prohibits online casinos.
Establishing the basics
HB 332 was introduced by Rep. Daniel Cahill (D-10, Essex), while SB 235 was presented by Sen. Paul R. Feeney (D-Bristol, Norfolk).
Both bills would create Category 1 licenses, which would allow the state's three casinos to contract up to two internet gaming platform providers. They would also create up to four Category 2 licenses, which would permit iGaming operations untethered to retail facilities.
Massachusetts Gaming Commission (MGC) Chair Jordan Maynard told The Guardian that licensing requirements will be strict.
“When I think about the industry right now, I see a highway without speed limits. [We’re going to] make sure that those who seek to benefit economically from this industry are held to high standards.”
Operator licenses would last for five years and cost $5 million upfront, with $5 million renewal fees at the end of each licensing period. The MGC would collect 20% of an operator's revenue in tax payments, slightly below the 25% charged to Category 1 retail licensees.
The 20% amount mirrors the rate charged to online sportsbook operators, of which Massachusetts licenses seven. Retail sportsbooks pay 15% in taxes.
The online casino legalization atmosphere
Thirty-eight states have legalized sports betting, yet only seven allow online casino gaming. The natural implication is that the next wave of expansion would involve this form of gambling, though that may not be the case.
Cordish Companies Executive VP Mark Stewart told LSR that online casinos could hinder the retail industry.
“There are a number of arguments that resonate. Jobs are a very big one, and the fact that in each of the [online casino] states, there have been substantial reductions in the casino workforce, and people losing jobs to the internet is not something very popular and is real.”
Those comments were later refuted by Sports Betting Alliance's Jeremy Kudon, who referenced the findings of gaming research firm Eilers & Krejcik Gaming and consulting firm Analysis Group.
“[Stewart’s] claims about job loss, problem gaming, and unregulated market competition simply aren’t supported by facts. The regulated market is far superior to the unregulated, illegal market for both customers and states.”
Referencing the report, Kudon noted that iGaming actually increased traffic at retail casinos.
Several other states have shown an interest in legalizing online casinos, but the last state to do so was Rhode Island in early 2024.