Massachusetts lawmakers have decided the time is right to consider adding legal online casinos to the state’s gambling ecosystem. A bicameral effort is now underway to make the Bay State the latest in the US to embrace regulated iGaming.
On Jan. 17, Sen. Paul Feeny and Rep. Daniel Cahill introduced bills—SD 2240 and HD 4084—to allow the Massachusetts Gaming Commission (MGC) to issue internet gaming licenses to the state’s retail casinos and up to four out-of-state operators.
This latest gaming expansion effort follows Massachusetts’s successful legalization of online lottery games in 2024. Unfortunately for lottery enthusiasts, the launch of that new iLottery has been delayed until 2026.
Bills authorize tethered and untethered licenses
According to the bills’ shared text, Massachusetts’ three brick-and-mortar casinos would be eligible for a Category 1, Massachusetts online casino license.
Under the Category 1 license, each licensee can operate two internet gaming platforms under separate and distinct brands. Each platform is further permitted to offer poker separately or poker and online casino games under one digital roof.
The bills also allow the MGC to award up to four untethered Category 2 licenses. Category 2 operators, however, will only be permitted to offer one gaming platform, although the option to provide a separate poker platform stands.
Despite different platform allowances, there’s no real difference between licensing categories.
Both authorize games including, but not limited to, poker, blackjack, craps, roulette, cards, slots, and any other games typically offered at a casino. The bills also permit live dealer games, which will not required to stream from within the state.
Additionally, both licensees will pay $5 million for their initial five-year lease, which they can renew at that cost at five-year intervals. All operators will also pay a 20% tax on their adjusted gross internet gaming receipts, minus promotional credits.
Until Jan. 1, 2028, operators can deduct all their promo spend from their adjusted gross internet gaming receipts. However, after that date, the bill caps operators’ promotional deductions at decreasing rates, first at 2.5% and eventually settling at 1.75% in 2031.
The bills earmark taxes, fees, and any additional monies collected for a newly established Internet Gaming Control Fund.
From there, the MGC will disperse the funds as follows:
- 45% to the General Fund
- 17.5% to the Workforce Investment Trust Fund
- 27.5% to the Gaming Local Aid Fund
- 1% to the Youth Development and Achievement Fund
- 9% to the Public Health Trust Fund
Tighter sports betting rules are also on the docket
Massachusetts previously legalized retail and online sports betting in 2022 and subsequently launched retail, then online sportsbooks in the first part of 2023.
However, sports wagering is again under the microscope, thanks to a bill—SD 1657—introduced by Sen. John Keenan to tighten sports betting regulations.
Specifically, Kennan’s bill aims to strengthen responsible gambling guidelines and ban prop bets, in-play betting, and ads during televised broadcasts. It also seeks to raise the sports betting tax from 20% to 51% and establish wagering limits. If passed, Massachusetts would become the first state to require affordability checks for online sports bettors.
Taking a different tact, Sen. Jacob Oliveira introduced SD 2428 to ban election betting in the state.
Operators who offered election odds, like prediction market provider Kalshi, took in over $900 million during the recent House, Senate, and presidential elections.
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