Proposal to legalize Massachusetts online casinos gets pushback from powerful opponent

While lawmakers try to legalize casino apps in Massachusetts, opponents have spoken out about the negative aspects online casino games for real money could bring to the state. In particular, Wynn Resorts, operator of one of three land-based casinos in Massachusetts, submitted testimony that legalizing iGaming in the state would not only increase the rate of problem gambling, but would also cut into the bottom line of retail resort operations.

Many consider Massachusetts to be one of the next states to legalize online casinos, and legislators are hoping to live up to those expectations with House Bill 4431.

The proposal, which was presented during a recent hearing of the Massachusetts Joint Committee on Economic Development and Emerging Technologies, would create up to nine online skins for operators such as the BetMGM Casino app and open an avenue for the FanDuel Casino bonus and DraftKings Casino bonus, among others.

Proponents of the bill said that MA online casinos could generate $200 million in annual state tax revenue, which would be used to fund education, local aid and responsible gaming programs.

Supporters also noted that state residents are already gambling online with illegal, offshore sites. By legalizing MA online casinos, the state would be able to provide consumer protection while capitalizing on tax revenue.

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For its part, Las Vegas-based Wynn Resorts, which operates Encore Boston Harbor in Everett just outside of Boston, submitted testimony to the hearing that legalizing online casinos in Massachusetts could jeopardize the land-based casino's workforce of around 3,000 people as well as the $15 million in monthly tax revenue generated by the facility.

Recognizing that Massachusetts could increase tax revenue from iGaming, Wynn said that MA online casinos would essentially cannibalize the land-based operations of the three commercial casinos, including revenue from hotel stays, restaurants and entertainment.

Wynn's voice is indeed a loud one in Massachusetts, as Encore Boston Harbor is the land-based leader with roughly $60 million a month in gross revenue over the past year, followed by MGM Springfield at around $20 million and Plainridge Park Casino at about $15 million.

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It should be noted that Wynn once offered a sportsbook and online casino platform in WynnBet, which the company began shutting down in August 2023. 

Despite that pushback, proponents of legalizing MA online casinos emphasized that iGaming is already being sought out by state residents with around 1.2 million monthly visits to unregulated operators, according to testimony during the joint committee hearing.

By legalizing online casinos in Massachusetts, lawmakers and regulators can protect consumers' personal and financial information, promote responsible gambling and generate sustainable tax revenue – all while minimizing the impact on land-based casino operations.

Grant Lucas