Massachusetts Lawmakers Push for Online Casino Legislation

Massachusetts is taking its first steps toward expanding mobile gambling options, with new legislation filed this week that could pave the way for online casino games. While the move is generating excitement among gamblers in the state, Massachusetts’ history of slow-moving gaming expansions suggests that it may take years before online casinos become a reality.

Representative Daniel Cahill and Senator Paul Feeney have introduced bills aimed at regulating online casino games. The proposed legislation, which includes live dealer games, online slots, and table games, seeks to expand the state's gaming options significantly. However, based on Massachusetts' past deliberative approach to gambling regulation, it’s expected that these bills will face hurdles before they can become law.

The Bills and Their Implications

The new legislation introduced by Cahill and Feeney would allow current gaming license holders in Massachusetts to offer online casino games, including live dealer games, slots, and table games, across two separate platforms. The bills also create opportunities for new entrants to the market, with the potential for four “untethered” licenses available for companies not currently partnered with existing gaming operators.

For Massachusetts' established casinos, including Encore Boston Harbor and MGM Springfield, these new regulations could allow for expanded partnerships with online gambling companies already operating in the sports betting market. With a 20% tax rate on revenue generated from iGaming, the state stands to gain significant financial benefits, further incentivizing lawmakers to consider the proposal seriously.

However, despite the potential for new revenue, the regulatory process in Massachusetts has been historically slow when it comes to expanding gambling. Delays and lengthy deliberations have characterized previous expansions, leading some to doubt how quickly these online casino bills could move through the legislative process.

The state’s cautious approach to gambling expansion is well-documented. While other states rushed to adopt casino gambling, Massachusetts took over a decade to finalize regulations for brick-and-mortar casinos, with legislation first emerging in 2008 and only being passed in 2011. Similarly, sports betting legislation, filed in 2019, only passed in 2022, and even the introduction of online lottery sales took years to implement.

Given this track record, Massachusetts lawmakers are not rushing into decisions regarding online casinos. Representative David Muradian, who has a separate gambling-related bill in the works, said that the process of passing iGaming legislation in the state could realistically take several years. Muradian has expressed a willingness to collaborate with other lawmakers, but as of now, discussions around online casino regulation remain in their early stages.

Potential Obstacles: iLottery and Stakeholder Interests

The online casino debate could become even more complicated by the impending launch of the state’s online lottery. Initially scheduled for a 2025 rollout, the Massachusetts Lottery has now pushed back its planned launch to 2026. This delay could provide additional time for lawmakers to consider potential conflicts between iLottery and online casinos, particularly if one threatens the market share of the other.

Some gaming industry stakeholders may also be divided on the issue. MGM Resorts, which has a significant stake in BetMGM, could be a strong advocate for online casinos in Massachusetts, hoping to bring its popular online platform to the state. Wynn Entertainment, however, has been more cautious about iGaming, committing only to online gambling in states where it operates physical casinos.

The Massachusetts Gaming Commission is currently studying the potential financial impact of online casinos, including the expected revenue from licensing fees and taxes. As lawmakers continue to deliberate, both the state and private interests will likely make their cases for or against expanding the online gambling market.

Realistically, the process to pass iGaming could take a few years.

Conclusion

While the introduction of online casino legislation in Massachusetts is a promising development for gamblers and the state's budget, the slow pace of past gambling expansions suggests that this process will not be quick. Lawmakers will likely take several years to navigate the complex regulatory landscape, considering various stakeholders’ interests and potential complications like the rollout of online lottery sales. For now, the future of online casinos in Massachusetts remains uncertain, but it is clear that the conversation has just begun.