Legislators in Massachusetts have little time remaining before the close of the legislative session on Nov. 19 to vote on two internet casino licensing proposals. Senate Bill 235 and House Bill 332, sponsored by Sen. Paul Feeney and Rep. Daniel Cahill, have been stalled since referral in the first half of the year in the Joint Committee on Consumer Protection and Professional Licensure.
Key Takeaways
- Massachusetts online casino legislation remains stalled with a key deadline of Nov. 19 looming
- The proposed bills would legalize and tax online casino operators under the Massachusetts Gaming Commission
- Offshore gambling sites have been targeted by state regulators, including recent cease-and-desist orders in June
If passed into legislation, the provisions will enable the Massachusetts Gaming Commission (MGC) to license and control the operation within the state of online casino operators. The plan includes a 20% tax on the adjusted gross revenue and a limit of 10 licenses.
Each of the state's three retail casinos could form partnerships with up to two online operators, while four standalone licenses would be available to other applicants.
Licensees would be required to pay $5 million for a five-year permit, with renewal available for the same amount. DraftKings, a Boston-based operator, expressed support, estimating that the state could generate $275 million in annual tax revenue.
Massachusetts has a reputation for slow, cautious gambling expansion. It took three years of legislative discussion before retail casinos were approved in 2011, and online sports betting followed a similar timeline, becoming legal three years after its first introduction in 2019.
Attorney General targets illegal online casinos
The regulatory environment in the MGC is strict. Massachusetts Attorney General Andrea Joy Campbell has issued cease-and-desist letters in recent weeks against SportsBetting.ag and BetOnline.ag for marketing and operating unlicensed within the state.
The letters accused the two operators of providing Massachusetts residents with a range of gambling products, from slots and poker to sportsbooks, in disregard for local laws.
The Attorney General's Office stated that both websites actively sought promotion by including U.S. pro leagues and celebrity endorsements in marketing to consumers, even though the MGC did not license them. The enforcement follows wider public education campaigns on health, particularly harm from gambling campaigns among young people.
In March 2024, Campbell launched the Youth Sports Betting Safety Coalition as a public-private initiative designed to raise awareness about internet wagering harm in young people. That is the broader initiative into which the current enforcement proceeding falls.
Ohio considers legalizing online casino games
Ohio lawmakers are also considering online casino legislation. House Bill 298 received its first hearing, with testimony from industry stakeholders highlighting the $5 billion already being wagered illegally in the state. Proponents argue that legalization would bring this activity into a regulated and taxable environment.
The proposed 28% tax rate is lower than the 33% levied on brick-and-mortar casinos. However, some industry players, including the National Association Against iGaming, argue that online gambling could harm physical casino revenue. Concerns remain over market cannibalization, especially given that 98% of Ohio sports bets are now placed online.
