The Social Gaming Leadership Alliance (SGLA) is urging Massachusetts lawmakers to reject House Bill H.4431, which proposes a ban on online sweepstakes casinos that offer casino-style games.
Massachusetts Bill Would Outlaw Sweepstakes Casinos, Promotions
HB H.4431 would also expose a wide range of legitimate businesses, including payment processors, marketing companies, internet service providers, and technology platforms, to unprecedented criminal liability.
“The legislation broadly targets any online game or promotion that awards prizes based on chance and uses virtual currency, including games that simulate slot machines, poker, table games, lotteries, and sports wagering,” the SGLA stated in a press release.
Such games would all be 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.
“Massachusetts has long been a hub of innovation, technology, and economic leadership, but this proposal sends the wrong message,” said Jeff Duncan, Executive Director of SGLA and former Congressman. “Voters do not want bans. They want smart rules that protect consumers, preserve choice, and strengthen the economy.
“A blanket prohibition on social games would strip away lawful entertainment, criminalize legitimate businesses, and undermine an industry that, if rules are modernized to regulate and tax the industry, could add to the state’s annual revenue.”
Sweeping Language Raises Multiple Red Flags
In addition, the SGLA said the “sweeping language” raises several red flags for businesses in the Bay State:
- Impractical Compliance Expectations. By making it unlawful to “support or assist” online sweepstakes games, routine service providers could face legal exposure for standard business activities.
- Unfair Criminal Liability. Businesses could face severe penalties even if they had no knowledge of or control over a client’s activities.
- Lack of Clear Standards. The bill fails to define key terms, offer safe harbor provisions, or establish reasonable compliance expectations, leaving businesses vulnerable to arbitrary enforcement.
The SGLA argued that recent polling shows approximately 84% of Americans agree “we should modernize our laws to regulate and tax online social games, not ban them.”
“SGLA remains committed to working with Massachusetts lawmakers, regulators, and stakeholders to develop a smart, modern regulatory framework that reflects voter sentiment, safeguards players, and supports innovation without resorting to blanket bans that hurt consumers and the state’s economy,” the Association added.