Massachusetts Considers Legal iGaming & Sweepstakes Ban

Lawmakers in Massachusetts have introduced a proposal that would legalize iGaming, while introducing a strict ban on sweepstakes. This comes amid a broader pushback against sweeps, as well as increased efforts to expand the US online casino space.

The Proposal Envisions Up to 3 Skins Per Operator

Massachusetts, which already allows online sportsbooks and lottery sales, is a perfect candidate to become the next iGaming state. Because of that, pro-gaming lawmakers have introduced House Bill 4431, hoping to legalize online casinos.

Under the proposed framework, Massachusetts will legalize and regulate online casino games, such as slots, table games, poker, and live dealer games. Responsibility for regulating the sector will be handed to the Massachusetts Gaming Commission.

Per the proposal, which is the brainchild of Rep. David Muradian, Jr., the state’s three land-based casinos, Encore Boston Harbor, MGM Springfield, and Plainridge Park, will be allowed to hold iGaming licenses and launch up to three online gaming platforms each. Licenses will be valid for five years.

Applying for a license would cost $100K, plus an additional $50K for every additional platform the operator wishes to run. Additionally, operators would have to pay a 15% revenue tax a month.

In addition to defining how gaming should be regulated, House Bill 4431 also outlines strict guidelines on customer protection. Online casinos will be reserved for legal adults exclusively and players will have a daily deposit cap of $20,000. The bill would furthermore prohibit the usage of credit cards for gambling, as well as the promotion of gambling content as “risk-free.”

Muradian Says “No” to Sweeps

In addition to legalizing iGaming, the bill would introduce wording that explicitly prohibits sweepstakes gaming. Sweepstakes, for context, are a type of social casinos that leverage a specific dual-currency system, under which players can play for free. However, the opportunity to buy additional tokens and play for real-money prizes makes sweeps indistinguishable from online casinos, according to many.

Because of that, sweepstakes operators have been facing increased pressure in the US, with many regulators slamming them as illegal iGaming operators.

Massachusetts’ House Bill 4431 reflects these sentiments as it envisions fines of between $10,000 and $100,000 for violators. Repeat offenders may even risk jail time.

Sweepstakes proponents, who have firmly rejected the notion that sweeps constitute gambling, have critiqued the proposed ban. On the contrary, regulated industry supporters praised the ban, arguing that the whole idea of the bill is to introduce a regulated alternative and prevent money from leaking into untaxed and unregulated online casinos.

In any case, House Bill 4431 is currently being reviewed by the Joint Committee on Economic Development. Its future remains uncertain as separate iGaming proposals in Massachusetts have stalled.