Next steps taken for potential legalization of Massachusetts online casinos

With just seven states featuring legal online casino sites for real money, other jurisdictions are looking to do the same – and Massachusetts is the latest to make a push toward legalizing iGaming. The state's Joint Committee on Economic Development and Emerging Technologies held a hearing recently on a proposed bill that would open the door for regulated online casinos in the state, making Massachusetts potentially the next state to legalize internet casino gaming.

Of course, the proposal did not come without pushback, but legislators believe legalizing online casinos would help protect state residents while also providing financial benefits for the state.

Proponents of the proposed legislation – House Bill 4431 – emphasize that legalizing online casinos in Massachusetts is in the best interest of the state and its residents. Regulating casino games online would protect and even enhance tourism in the state, according to the bill, and bolster Massachusetts' general fiscal well-being.

The bill would allow for the state's three land-based casinos to have three online skins each, creating up to nine online casinos in Massachusetts. 

According to proponents, legalizing MA online casinos could generate upward of $275 million in annual state tax revenue that would support education, local aid and responsible gaming programs in the state rather than that money being lost to unregulated markets.

Rep. David Muradian Jr., the primary sponsor of the bill, told the joint committee that state residents are already gambling online with offshore entities and without any oversight, putting them at risk for potential fraudulent activity. Gambling consultant John Pappas noted that Massachusetts residents combined for over 250,000 monthly searches for online casino and poker sites, leading to 1.2 million visits to illegal, offshore online casino sites.

As is common in other states looking to legalize online casinos, opponents in Massachusetts are afraid that regulated iGaming platforms would cut into the bottom line of land-based casinos in the state.

Pappas, though, pointed to nearby Pennsylvania, which saw $1.3 billion in tax revenue generated by legal gambling before online casinos were launched in 2019. That total increased to $2.7 billion this past fiscal year.

What's more, according to Rebecca London, senior government affairs manager at DraftKings, noted that legal online casinos could conservatively generate up to $200 million in annual tax revenue without additional taxes levied upon state residents.

Of the seven states with legal casino apps, two – Rhode Island and Connecticut – share a border with Massachusetts. Obviously Pennsylvania and New Jersey are also nearby, as is Delaware.

Those states have certainly benefited from regulated online casinos, which, according to the American Gaming Association, generated over $8.4 billion in tax revenue last year alone.

With the proposed model of up to nine skins, that would certainly open the door for popular online casinos to open up shop in Massachusetts, including the BetMGM Casino app as well as players using the DraftKings Casino promo code, the FanDuel Casino promo code and the Caesars Palace Online Casino promo code, among others.

Grant Lucas