Massachusetts lawmakers have filed twin measures in the House and Senate seeking to legalize and regulate online casino.
The bills, HD 4084 and SD 2240, present a framework to regulate iGaming and propose that the Commonwealth establish an Internet Gaming Fund to collect and distribute funds from MA’s online casino proceeds.
What could MA online casino look like?
Representative Daniel Cahill and Senator Paul R. Feeney introduced the proposed Massachusetts iGaming legislation, which offers a dual licensing system: Category 1 licenses tied to existing casino operators and Category 2 licenses for independent entities.
The bills allow for six Category 1 licenses. Each existing land-based casino operator will be permitted to partner with two online platforms. In addition, there will be four untethered Category 2 licenses.
Under the proposed rules, each operator would be required to pay a $5 million licensing fee for a five-year term, and gross revenue generated from MA online casino would be subject to a 20% tax rate. This is broadly in line with other states that have legalized iGaming.
As aforementioned, the tax revenue generated would go to the Internet Gaming Fund, which would then distribute proceeds as follows:
- 45% to the General Fund;
- 27.5% to the Gaming Local Aid Fund;
- 17.5% to the Workforce Investment Trust Fund;
- 9% to the Public Health Trust Fund;
- 1% to the Youth Development and Achievement Fund.
No revenue projections for casino operations are available, although the Massachusetts Gaming Commission is studying the potential impact of expanded gambling legalization.
One notable provision is the authorization of a second brand exclusively for online poker. Per Section 6(b)(1) of SD 2240: “Each internet gaming platform shall be offered under a single distinct brand, except that each internet gaming platform may use a second distinct brand to offer poker.”
The legislation also includes mechanisms to encourage interstate collaboration. Section 24 of SD 2240 permits the MGC to establish “internet gaming reciprocal agreements” with other jurisdictions, enabling Massachusetts to join multi-state player pools for games like online poker.
It could pave the way for Massachusetts to join the Multi-State Internet Gaming Agreement, which already exists to increase player liquidity in online poker. Nevada, Delaware, Michigan, New Jersey, and West Virginia are the states currently signed up. Pennsylvania is expected to join the agreement shortly.
Massachusetts Lawmakers Busy with Gambling
The Bay State joins Maryland, New York, Wyoming, Indiana, and New Jersey as states with online casino adjacent legislature filed.
In addition to online casino legislation, Sen. John Keenan has filed SD 1657, calling for vast changes to sports betting legislation. This legislation would include a blanket ban on in-play wagering and prop-style bets and mandatory affordability checks for anyone wagering over $1,000 a week. Keenan also proposes a tax hike on online sports betting to 51%, matching that of states such as New York and Rhode Island. He proposed a similar amendment in 2024, which the Senate quickly dismissed.
