Massachusetts lawmakers are considering a bill that would legalize and regulate online casinos, while banning online sweepstakes casinos in the Bay State.
House Bill H.4331, initially filed by Rep. David K. Muradian, Jr. in January, has now finally advanced and is under review by the Joint Committee on Economic Development.
Only Three Massachusetts Casinos Would Be Eligible For Licenses
H.4431 would establish a new legal framework for internet-based slot machines, table games, poker and live dealer games, all overseen by the Massachusetts Gaming Commission (MGC).
Only the three existing casinos — Encore Boston Harbor, MGM Springfield, and Plainridge Park — would be eligible for licenses, with each permitted to launch up to three online platforms or “internet gaming skins.”
Licenses would be valid for five years, with low application fees of $100,000 and $50,000 for each additional skin. Operators would pay a 15% tax on gaming revenue.
Customers may only hold one account per brand, daily deposits are capped at $20,000, and credit cards are prohibited as a funding method.
In addition, age-verification measures are required by the internet gaming operator or platform provider to establish internet gaming accounts remotely.
Sweepstakes Games Are Defined In H.4431
More importantly, sweepstakes sites would be outlawed.
In H.4431, “online sweepstakes game” is defined as “any game, contest or promotion, in which a prize is awarded based on chance, that is available on the internet and accessible on a mobile phone, computer terminal or similar access device, that utilizes a dual-currency system of payment allowing the player to exchange the currency for any prize or award or cash or cash equivalents, and simulates casino-style gaming, including but not limited to, slot machines, video poker, and table games, lottery games and sports wagering.”
H.4431 continues to read:
“Section 19. (a) It shall be unlawful for any person or entity to operate, conduct or promote online sweepstakes games within the commonwealth. (b) It shall be unlawful for any person or entity to take any action to support or assist in the operation, conduct or promotion of online sweepstakes games within the commonwealth. (c) Whoever violates subsections (a) or (b) shall be subject to a fine of not less than $10,000 and not more than $100,000 for each violation and subject to potential loss of gaming license.”
Repeat offenders will be subject to increased fines, potential loss of gaming license, and imprisonment of up to two years.