Massachusetts Bill Would Legalize Online Casinos, Ban Sweepstakes Sites

A new Massachusetts bill is proposing to legalize online casinos in the state while outlawing sweepstakes casinos.

HB 4431, filed by Rep. David K. Muradian, Jr. in January and referred to the Joint Committee on Economic Development and Emerging Technologies on August 18, would legalize iGaming starting at the beginning of 2026.

Online Casinos Provisions

The bill creates a new Chapter 23O of Massachusetts law, explicitly authorizing online casino gaming. The Massachusetts Gaming Commission will oversee licensing and regulation. Key provisions include:

• Eligible Operators: Only eligible license holders (currently Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino) could apply. Each can have up to three skins per license, meaning up to nine online casinos can launch presently.
• Licensing Fees: $100,000 for licensees, $50,000 for each skin, and $15,000 for suppliers. Licenses last five years, with renewal fees being identical to the application fees.
• Tax Rate: 15% of adjusted gross revenue.
• Game Types: Authorized games include poker, blackjack, craps, roulette, slots, live-dealer streamed games, and other casino-style offerings approved by regulators.
• Consumer Protections: Strict requirements for age (21+) and geolocation verification, a daily deposit limit of $20,000 per player, no credit card deposits or withdrawals, and a ban on deceptive marketing.
• Responsible Gaming: A Player Health Program would fund services for addiction. Operators must implement AI-driven tools to detect risky play patterns, while features like “risk-free” promotions and college campus ads would be prohibited.

If enacted, the bill would take effect on January 1, 2026.

Ban on Sweepstakes Casinos

HB 4431 also prohibits unregulated sweepstakes casinos in Massachusetts. Violators would face fines of $10,000 to $100,000 per offense, with repeat offenders subject to higher penalties and possible imprisonment.

The move follows a national trend. Five states have banned sweepstakes casinos in recent months. They include Montana, Connecticut, New York, Nevada, and, as of a few days ago, New Jersey.

A ban bill is also progressing in California, while some states, such as Louisiana, Maryland, Arizona, Mississippi, and West Virginia, have taken a regulatory approach to force sweepstakes casinos out.

Elsewhere, in May, an Ohio lawmaker introduced a bill that pairs online casino legalization with a ban on sweepstakes casinos, echoing the same strategy Massachusetts is now considering.

If both proposals advance and ultimately pass, it could spark the beginning of a broader trend: states legalizing online casinos while simultaneously banning unregulated competition.

Companion MA iGaming Bills Already in Motion

HB 4431 is not the only iGaming proposal in Massachusetts this year. Two companion bills, House Bill 332 and Senate Bill 235, received a joint committee hearing in June.

The proposals differ significantly from Muradian’s bill. They call for ten online casino licenses, six tethered (two skins per retail casino), and four untethered without a tie to land-based property.

At 20%, the companion bills’ tax is higher, and so is the cost: $5 million initial and renewals. While different than HB 4431, the two bills call for various responsible gaming measures.

Another critical difference is that the companion bills do not include a provision to ban sweepstakes casinos.

The inclusion of a prohibition on social platforms could help HB 4431 stand out against the other proposals. As sweepstakes casinos have received increasing scrutiny, more lawmakers could be willing to vote on the measure in an attempt to crack down on gray-market operators.

However, given Massachusetts’ pragmatic approach to measures like sports betting and online lottery, it will likely take years before online casinos become a reality.

Still, the introduction of multiple bills indicates that more lawmakers are becoming open to the idea.