Massachusetts Online Casino Bill Slated for Hearing
Massachusetts Online Casino Bill Slated for Consumer Protection Committee Hearing
- iGaming is being considered in Massachusetts
- A hearing on legislation to authorise online casinos is set for next week
- Massachusetts is currently home to three casinos and online sports betting
Legislation in Massachusetts aiming to authorise, regulate, and tax online casino gambling is set to be discussed by the Joint Committee on Consumer Protection and Professional Licensure.
With neighboring states like Connecticut and Rhode Island embracing legal iGaming, it’s believed that now is the opportune time for Massachusetts to join the fray by allowing online slots and table games. This bill comes from State Senator Paul Feeney (D-Bristol) and Representative Daniel Cahill (D-Essex), proposing Senate Bill 235 and House Bill 332 to establish Massachusetts as an iGaming region.
The committee is set to discuss the proposed legislation next week.
Current Landscape of iGaming in the U.S.
Currently, only seven states, including Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia, have legal online casino gambling. Supporting measures like these could generate significant tax revenue from iGaming for Massachusetts.
It’s noteworthy that Rhode Island expanded its online gambling platforms two years ago, becoming the seventh state to offer such services. Despite discussions about new markets in several other states, no new iGaming legislation has passed recently.
Recently, Maine’s legislature expedited an online casino measure aimed at granting iGaming rights to local tribes, with expectations that it will be vetoed by Governor Janet Mills.
The Chair of the Massachusetts Gaming Commission, Jordan Maynard, has voiced concerns about the rapid growth of online gambling regulation nationwide, highlighting the need for robust oversight.
“When I consider the state of the industry, it resembles a highway with no speed limits, and vehicles that lack safety features,” Maynard expressed during an interview. “As regulators, it’s our responsibility to ensure safe practices for consumers.”
Companies like MGM Resorts and Penn Entertainment, which operate MGM Springfield and Plainridge Park in Massachusetts, have shown support for iGaming expansion, contrasting Wynn Resorts, which recently shuttered its online gaming unit, WynnBet.
Details of the Massachusetts Online Casino Bill
The proposals from Feeney and Cahill would grant each of the three brick-and-mortar casinos in Massachusetts the ability to partner with up to two iGaming operators. Additionally, it would permit the rollout of four untethered online casino brands.
The cost of each iGaming concession is set at $5 million initially, with renewal fees of the same amount due every five years thereafter.
Besides these licensing fees, a 20% tax on gross gaming revenue from iGaming is proposed, which could attract operators like DraftKings given that it is relatively low compared to Pennsylvania’s 54% and Rhode Island’s 52.5% online slots tax. Connecticut has set its iGaming tax rate at 18%.
Massachusetts ranks as the 16th most populous state in the U.S. with around 7.1 million residents and has the highest median household income, approaching $100,000 last year.
Conclusion
Legislation to permit online gambling in Massachusetts is progressing with consideration for the associated economic benefits. This step aligns the state with its neighbours, reflecting a growing trend towards legalised online gambling, making it a significant and timely proposition for local revenues and the entertainment sector.
As lawmakers move forward, stakeholders from various sectors will be watching closely to understand the implications for the state’s gaming landscape.
