Massachusetts Considers Online Casino Option

Not much has been heard from the state of Massachusetts regarding the inclusion of online casino gambling within the state's gambling landscape. It appears that this has changed as the legislature is now considering an iGaming option that had not been mentioned in the past.

At the Massachusetts statehouse, legislators have been discussing the possibility of allowing existing retail casinos to also offer online casino access. The discussion is also addressing concerns over gambling addiction and economic impacts. This would mark the beginning of a new era for the state’s retail/online gaming industry.

The Bill's Introduction

In an interesting twist, the discussion began with former Massachusetts state Rep. David Nangle discussing his past struggles with gambling addiction. He delivered his story in opposition to any bill that might promote any form of online gambling.

Despite Nangle's efforts, Rep. David Muradian Jr. proceeded to introduce.
House Bill 4431 which is intended to lay the framework for legalizing iGaming activities within the state's borders. Based on the language in the bill, existing retail casino operations would be permitted to offer online casino gambling options as well. It specifically mentioned the following three retail casinos: Plainridge Park, MGM Springfield, and Encore Boston Harbor. Each of these retail casino operations would be permitted to operate three online casino brands each under the regulations set forth by the Massachusetts Gaming Commission.

As has been the case in many states, this move seems to be directed at addressing the increased use of residents of sweepstakes and offshore online casinos. Along with legalizing the use of online casinos, the legislation also addresses issues related to age verification and responsible gaming measures.

The Battle Ensues

As could be expected, representatives are lining up to battle on both sides of the issue.

Proponents are quick to point out the potential financial benefits for the state. According to analysts, online casinos could create between $170 million and $200 million in gross annual revenue. At a proposed tax rate of 15%, that could mean up to $30 million added to the state's coffers. These projections were modeled after what has happened in nearby New Jersey.

It's not a surprise that opponents are calling out issues related to the possible increase in gambling addiction rates and the likelihood of economic cannibalization of physical casinos. That would most likely lead to the layoff of employees, which would presumably hurt local communities.

The process of considering this bill has just started. After arguments are heard from both proponents and opponents, one can expect there will be a lot of amendments proposed.

At this early stage, it's nearly impossible to determine whether or not this bill has the legs to pass. It's up to lawmakers to strike a balance between the potential benefits of passing such legislation and addressing the concerns of opponents. It would seem unlikely that anything will be decided before the end of the current legislative session. It depends on the urgency of this issue in comparison to everything else on the docket.