Online casino legalisation officially entered the Massachusetts policy debate Thursday, as lawmakers heard wide-ranging testimony for and against it. Supporters urged regulation to replace illegal play and generate tax revenue, while opponents warned of increased addiction and harm to existing casinos.
In a Joint Committee on Economic Development and Emerging Technologies hearing, Rep. David Muradian presented his H4431, a bill aiming to legalise online casino in Massachusetts. The committee did not take action on the bills and will accept written testimony until 20 November. House matters require a report by 17 December.
“Consumers in the commonwealth have operated in illegal markets and will continue to do so,” Muradian told the panel. “This bill brings it out of the shadows into a safe, transparent system.”
The bill would allow the state’s three casinos to offer iCasino products. Muradian said the bill establishes strong consumer protections and taxes operators 15% on online casino revenue.
“We would welcome conversations to enhance these protections,” he said.
Multiple industry stakeholders spoke to the committee, including consultant John Pappas, DraftKings Senior Government Affairs Manager Rebecca London and West Virginia Delegate Shawn Fluharty, who also is head of government affairs at Play’n GO. Fluharty helped pass sports betting and iCasino legislation in West Virginia.
“iGaming [legislation] is bipartisan,” he said. “It shrinks the black market, raises revenue and protects the customer. The current system is the wild, wild west. This weeds out bad actors and rewards good actors who want and desire a regulated market.”
iCasino opposition heard in Massachusetts
Several Massachusetts lawmakers who supported legalising sports betting expressed remorse that it could have caused an increase in problem gambling. They warned about iCasino expansion and supported bills putting stronger guidelines on the sports betting industry. Senator John Keenan’s S302 would ban prop and in-play bets while raising sports betting taxes to 51%.
A representative from the National Association Against iGaming (NAAiG) highlighted various statistics from states with online gambling and the rise in calls to problem gambling. That included a 200% increase in calls in Massachusetts since sports betting launched. Several regional casino companies, including The Cordish Companies and Churchill Downs Inc, launched NAAiG this year to oppose the nationwide push to legalise iCasinos.
The NAAiG stated there has been a 26% decrease in the Pennsylvania land-based casino workforce since online casinos went live. It also projects a 16% cannibalisation of land-based casino revenue in Massachusetts.
Problem gambling consultant Brianne Doura-Schawohl detailed risks tied to gaming expansion. She stated that fewer than 2% of Massachusetts residents utilise tools available to prevent problem gambling.
Multiple other gambling-related bills that were on the committee’s agenda included ways to protect land-based casinos, allow fraternal organizations to conduct bazaars, allow peer-to-peer cardrooms and encourage investment into in-person sportsbooks.
Massachusetts lawmakers heard from industry advocates backing online casinos and opponents warning of addiction and revenue cannibalisation.