State lawmakers in Massachusetts have shelved plans for legalizing online casinos, sending a closely watched bill to study. This comes even as the outcome is likely to generate revenue for the state and was also supported by the gaming industry.
Key Takeaways
- Massachusetts lawmakers voted unanimously to send an online gaming bill to study.
- Supporters argued the measure could generate up to $200 million annually while improving consumer protections.
- Opposition centered on competition with existing gambling products and concerns over addiction risks.
The Joint Committee on Economic Development and Emerging Technologies voted 11-0 to sideline House Bill 4431 on Monday, effectively stalling the proposal.
The legislation, introduced by Rep. David Muradian, sought to legalize online casino gaming under the oversight of the Massachusetts Gaming Commission. Industry estimates suggested the measure could generate between $170 million and $200 million in annual revenue.
Muradian indicated he plans to reintroduce the bill in the 2027 to 2028 session, pointing to continued interest and debate. He maintained the proposal would regulate existing online gambling activity already occurring through unlicensed platforms, positioning the bill as a consumer protection measure rather than a pure expansion of gambling.
The framework would have allowed the state's three licensed casinos to operate up to three online brands each. It also included safeguards such as age verification, deposit limits, and requirements for operators to monitor and address problem gambling behavior. A 15% tax on gross gaming revenue was included.
Opposition remained significant. Treasurer Deb Goldberg had expressed concern about competition with the state lottery’s upcoming launch of online lottery, especially about the advertising benefits that private companies have. There were also concerns that online gaming could siphon funds away from current casinos.
Even though the committee is moving forward with a different economic development proposal related to research, there is still hesitation about Massachusetts sports betting, specifically about moving forward with online casino gaming.
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Maryland moves toward public vote on online gaming expansion
As Massachusetts is taking a pause from iGaming, Maryland lawmakers are advancing a different approach, leaving the decision up to voters. Two bills have been introduced in the Senate that would legalize online casino gaming, but only if voters pass a referendum in November 2026.
The first measure proposes a constitutional amendment asking voters whether to authorize internet gaming to support designated state priorities, including education funding. If rejected, the expansion effort would end without further legislative action.
A companion bill outlines the regulatory structure that would take effect if voters approve the measure. Oversight would be under the Maryland State Lottery and Gaming Control Commission and would primarily involve the existing casino operators and their partners.
The bills are still under review and need approval from lawmakers to proceed with a referendum. The outcome would determine whether Maryland transitions from a retail-focused casino model to regulated online gaming. However, it faces opposition from local groups, including Ocean Downs Casino and Worcester County officials, who argue that online casinos would cannibalize the market.
