Legalized online casino gaming debated in Massachusetts

Online casino gaming in Massachusetts is back on the agenda, as lawmakers heard pleas from the industry to protect it from the black market. 

The Massachusetts Legislature’s Joint Committee on Consumer Protection and Professional Licensure reviewed bills, including one that would permit adults to play casino games – slots, roulette, and other table games – on mobile devices and computers.

Industry representatives testified that illegal “iGaming” is already widespread in the Bay State. 

DraftKings’ government affairs manager, David Prestwood, told the committee, “Online casino gaming is happening in Massachusetts, just not legally, regulated, or taxed.” 

As reported by the Boston Herald, he noted that a quick internet search allows residents to access unregulated sites that lack consumer protections, age verification, or responsible gambling resources and contribute no tax revenue.

On this basis, many lawmakers will be keen to act, to shore up the regulatory black hole, as well as to open up a crucial source of tax revenue to the state purse. 

However, opponents have urged caution, warning of the gambling-related harms that will increase if online casino gaming in Massachusetts is legalized.

FanDuel’s James Hartman added that residents can find illegal betting apps within minutes, fueling a $7 billion annual market in Massachusetts alone. He criticized unregulated operators for partnering with celebrities to appear legitimate, targeting vulnerable groups like minors, and offering no recourse for compromised personal data. 

Prestwood continued to estimate illegal online casino activity as a $330 billion national industry and projected that legalizing it in Massachusetts could generate $230 million to $275 million in annual state revenue. 

Massachusetts lawmakers are mulling over two identical iGaming bills in the House and Senate.

A joint committee heard pro and con testimony from a number of testifiers this morning. https://t.co/DZHy5SiMa1

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States such as Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia, which have legalized iGaming, have reaped significant tax revenue and curtailed black market activity.

“Massachusetts can lead by passing smart, well-regulated, and reasonably taxed i-gaming legislation, protecting citizens while unlocking hundreds of millions in new revenue,” added the DraftKings executive.

Conversely, Brianne Doura-Schawohl, a problem gambling expert from the Campaign for Fairer Gambling, warned lawmakers of the risks involved. 

She detailed research calling iGaming the “fast food of gambling,” driven by addicted individuals, recalling that in Connecticut, 70% of iGaming revenue came from just 7% of residents, many with gambling issues. 

Doura-Schawohl urged Massachusetts lawmakers to approach the policy cautiously, noting that the seven states that legalized i-gaming faced addiction-related fallout despite revenue promises.

“You should consider this policy with eyes wide open, it may result in more harm than good,” she advised on the question of online casino gaming in Massachusetts.

Monday’s hearing in the Legislature concluded with lawmakers taking no action on the proposals.

Image credit: Boston Globe/X

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