Massachusetts Proposes Legal iGaming with a Sweepstake Ban

Massachusetts Moves Toward Legalizing Online Gambling

Massachusetts lawmakers have introduced a bill aiming to legalize online casino gaming while imposing a firm ban on sweepstakes operations. This initiative reflects a broader trend across the US to regulate and expand the online gambling marketplace, especially in states with existing gaming infrastructure.

Details of the Proposed iGaming Framework

The state, already permitting online sports betting and lottery sales, is considering House Bill 4431, designed to bring iGaming into its regulated market. The bill would allow established land-based casinos to obtain licenses to operate online casino platforms, regulated by the Massachusetts Gaming Commission.

Specifically, the three brick-and-mortar casinos—Encore Boston Harbor, MGM Springfield, and Plainridge Park—could each launch up to three distinct online gaming sites. Licenses would be issued for a five-year term, with applicants required to pay a $100,000 fee for a license plus $50,000 for each additional platform they wish to operate. Furthermore, operators would contribute 15% of their monthly revenue in taxes.

Player protections are a key part of the bill, including restrictions that only adults may participate, a maximum daily deposit limit of $20,000, a ban on using credit cards for gambling transactions, and a prohibition against promoting gambling as risk-free.

Strong Opposition to Sweepstakes Gaming

While the bill promotes legal online casino gaming, it simultaneously imposes a strict ban on sweepstakes-style games. Sweepstakes are often characterized as social casinos using a dual-currency system and allowing free play. However, because players can purchase additional tokens and compete for real prizes, these games are often criticized for mimicking traditional online gambling.

Massachusetts would enforce significant fines ranging from $10,000 to $100,000 for illegal sweepstakes operations, with repeated violations potentially resulting in jail time. The legislation reflects concerns from regulators who view sweepstakes as unregulated gambling activities that undermine taxed gaming markets.

While supporters of sweepstakes dispute their classification as gambling, proponents of regulated gaming welcome the ban, emphasizing the goal of providing a safe, legal alternative and preventing revenue from flowing to unauthorized operators.

Next Steps for House Bill 4431

The bill is currently under review by the Joint Committee on Economic Development. Its future remains unclear as other iGaming proposals in Massachusetts have faced delays. Nevertheless, this legislation highlights the state’s interest in establishing a regulated online casino environment while addressing challenges posed by less regulated games like sweepstakes.