Massachusetts lawmakers will discuss whether to legalize online casinos on June 23, a policy shift in a state that to date legalized online Massachusetts sports betting but not online casino games.
Key Takeaways
- A hearing on June 23 will discuss two bills that would authorize online casinos in Massachusetts.
- A debate is expected over online casinos' potential effect on traditional retail outlets.
- Gaming Commission Chairman continues push for federal internet gambling regulation.
The Joint Committee on Consumer Protection and Professional Licensure will consider two sister bills that have been in limbo.
Both bills would establish two types of licenses. Category 1 licenses would allow the state's three existing casinos to affiliate with a maximum of two internet gaming platform providers. The bills would each provide for the issuance of up to four Category 2 licenses, allowing online casino operations to be separate and distinct from land-based casino sites.
Operator licenses would have a five-year lifespan and a one-time $5 million fee, with the same renewal fees due at the end of each licensure period. Taxing would be 20% of gaming revenue, the same as will be imposed on online sportsbooks and less than the 25% tax charged to retail casino operators.
In comparison, the Massachusetts retail sportsbooks are taxed at 15%.
Massachusetts Gaming Commission chairman Jordan Maynard has supported measures that will enhance the industry. Maynard became MGC chairman late in 2023 after serving on an interim basis since August 2022 and has been a proponent of solid regulatory conditions to complement industry expansion.
The bill comes as the U.S. industry is split over online casinos' potential effect on traditional retail outlets. Although some casino leaders have said that they worry online gaming will cannibalize business at physical outlets, data referenced by the Sports Betting Alliance (SBA) disagrees with that assertion.
Jeremy Kudon, president of the SBA, referred to a study by Eilers & Krejcik Gaming and the Analysis Group that concluded that online gaming is linked with more in-person visits, not less. Kudon also stated that there's no evidence of job loss, addiction, or the expansion of illegal markets.
Maynard calls for more federal regulations
Beyond state concerns, Maynard has been lobbying for federal internet gambling regulation. In recent comments to The Guardian, he said that he would like to see national standards, such as establishing a single exclusion list for problem gamblers.
Exclusion lists are currently maintained state-by-state, allowing individuals to evade prohibitions by crossing state borders. Maynard described the issue as one "ripe for a federal conversation."
Maynard also addressed how emerging technologies were affecting the gambling sector. He argued that if operators employ artificial intelligence to interact with gamblers, operators ought to use the same technologies to enhance responsible gambling interventions.
He feels that additional regulatory pressure can trigger such innovations in consumer protection.
