No, Massachusetts Won’t Ban Social Casinos

Social casinos and the millions of Massachusetts residents who enjoy them recreationally have nothing to worry about for the time being, as a draft law, House Bill 4431, failed to gain traction and will not be progressing further during this legislative session. 

Big Win for Social Casinos in Massachusetts, as Committee Refuses to Move Forward with Bill

HB 4431 threatened to kill the social casino sector in the Bay State, but it has been a non-starter at the Joint Committee on Economic Development and Emerging Technologies, where the committee members said that the bill ought to be converted into a study to collect evidence on whether the claims it had made about the sector were valid. 

This does mean the state would not try to eventually take out the thriving online sweepstakes casinos, but unlike other states, which have acted on impulse, Massachusetts is taking pains to analyze the conditions behind the market. 

This means that Massachusetts residents may continue to enjoy trusted, legitimate, and legal online social casinos such as Myprize, while awaiting further legislative action. For its part, trade groups such as the Social Gaming Leadership Alliance (SGLA) have welcomed the Bay State’s approach, calling it the right one.  

Legislature may not leave the issue alone, however, as lawmakers have repeatedly raised concerns over the use of the double-currency mechanic, which allows casino players to cash out for real prizes, which is the main argument that critics of the sector make.

SGLA Says Not to Kill a Thriving Sector, but Regulate It Better

The SGLA has welcomed initiatives that seek to further regulate and tax the sector, but has urged lawmakers to differentiate between an “illegal sector” and a well-established business model that has been around for decades.

Rather than pass blanket bans, lawmakers would do best to not stifle innovation through the killing of a tech-savvy sector, but rather try to regulate it better, including tax increases. 

The SGLA has repeatedly called for clearer regulation of the sweepstakes sector, urging lawmakers to work with stakeholders and create frameworks that would allow social online casinos to continue delivering a beloved product while also paying tax contributions and addressing the concerns raised by HB 4431 and similar legal moves.