Massachusetts iGaming Push Hits Resistance Due to Lottery Revenue Concerns

Efforts to legalize online casino gaming in Massachusetts are facing renewed resistance, highlighting several unresolved concerns that are leaving many lawmakers hesitant. While iGaming supporters argue that legalizing online casinos would unlock a new tax revenue stream and curb offshore gambling, recent developments suggest lawmakers are in no rush to move forward.

The Current Proposal Promises Significant Benefits

The ongoing disputes center around House Bill 4431, introduced by Rep. David Muradian Jr., which would authorize online casino gaming across the state. The proposal suffered a setback after legislators voted to extend the reporting deadline to March 16. Experts view this development as an indication that a consensus is still out of reach.

According to the bill, the state’s three land-based casinos, Encore Boston Harbor, MGM Springfield, and Plainridge Park, will be allowed to apply for iGaming expansion. Each property could operate up to three online platforms under five-year licenses. Operators must pay a $100,000 application fee, an additional $50,000 per platform, and a monthly tax of 15% on gross gaming revenue. The bill also envisions robust consumer protections and a ban on sweepstakes-style gaming.

Legalizing iGaming should also curb illegal gambling. Thousands of Massachusetts residents currently use unregulated offshore platforms that do not provide sufficient consumer protections, have no self-exclusion programs, and often offer no recourse when disputes arise. The lack of a legal alternative effectively sends potential tax revenue overseas while exposing players to greater risk.

Many Lawmakers Remain Unconvinced

State Treasurer Deborah Goldberg, who oversees the Massachusetts Lottery, has been an outspoken critic of iGaming legalization. The Lottery remains a significant source of funding for local aid and public services, and Goldberg warns that iGaming could siphon off players and revenue. She argues that 24/7 access to a phone loaded with digital blackjack and slots diminishes the appeal of scratch tickets.

iGaming opponents fear that online casinos will harm lottery revenues, affecting municipal funding. Supporters counter that the fear of cannibalization is overstated. They maintain that regulated online casinos could attract new players and bolster the broader gambling sector. They assert that the regulation of online casinos would allow the government to protect consumers who are already gambling online, just not legally.

However, problem gambling concerns remain. Gov. Maura Healey and Sen. John Keenan have urged caution, questioning whether the state can handle the social costs associated with iGaming. Their stance reflects a broader hesitation among lawmakers who seek stronger assurances that vulnerable residents won’t be left behind. Even as March 16 approaches, few expect a decisive breakthrough.