Massachusetts Looks To Legalize iGaming But Ban Sweepstakes Games
The Commonwealth of Massachusetts is set to debate the legalization of iGaming thanks to the introduction of H4431 by state representative David Muradian. The bill would also ban any form of sweepstakes games.
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Massachusetts iGaming Bill H4431
Representative Muradian tabled the bill earlier this week. It was sent to the Economic Development and Emerging Technologies Committee.
The justification for the bill is that regulating iGaming, rather than its proliferation through illegal channels, is better for the safety and welfare of Massachusettsians.
H4331 would allow all types of casino games like poker, blackjack, slots, and craps. Peer-to-peer and skill-based games would also be permissible per the proposed legislation.
Licenses would last for five years and carry a $100,000 application and renewal fee. Gross gaming revenue for all licensees would be taxed at 15%.
For players, the bill would introduce certain limits. Deposits can't exceed $20,000 in 24 hours, and deposits can't be made via credit card.
The bill would also create the Player Health Program to "increase public awareness of problem gambling". The Program is funded through fees found in the bill, as well as a percentage of the tax from gaming revenue.
Sweepstakes Games Exclusion
Bill H4431 bans sweepstakes games from the state, stating specifically that it would be unlawful to "operate, conduct, or promote online sweepstakes games in the commonwealth".
The bill also defines "online sweepstakes games" as any game that uses a dual-currency system, simulates casino-style games, or sports wagering. It's a similar definition that has been used in other jurisdictions, like New York, with S5935a.
However, sweepstakes games advocacy group, the Social Gaming Leadership Alliance (SGLA), believes the bill fails to define key terms and broadly targets online games. Notably, SLGA member VGW pulled its sweepstakes offerings in New York after S5935a passed both the House and Senate.
The Social & Promotional Games Association (SPGA) told Odds Shark H4431 shows lawmakers fail to understand the sweepstakes model.
 | "Lawmakers moving to ban sweepstakes while introducing iGaming demonstrate a poor understanding of the sweepstakes model and undue deference to iGaming lobbyists. Instead of a blanket ban, Massachusetts could embrace oversight and regulation, securing millions in potential tax revenues, instead of deciding for its residents what games they can - and can’t - play on their mobile phones." -SPGA Spokesperson |
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Regulations Not Bans
SGLA Executive Director Jeff Duncan believes that voters don't want bans. They want "smart rules that protect consumers, preserve choice, and strengthen the economy." It's a common refrain that has been shared by the SGLA as well as the SPGA.
The two groups want meaningful regulation instead of bans. After all, these games remain hugely popular. Banning them will only force voters to find alternatives. That could mean using a VPN to access dangerous offshore sweepstakes games, leaving players vulnerable.
We know that a significant portion of Americans still gamble through illegal means. The American Gaming Association believes that nearly a third of US gaming is done through illegal operators.
Why needlessly push more Americans to gamble in a dangerous environment with bans?
