Some of the Conversation From Last Week
At the hearing last Wednesday, the conversation focused on revenue, responsible gameplay, and consumer protections for real-money iGaming in the state.
The bill focuses on legalizing online iGaming but will also ban sweepstakes casinos.
“Consumers in the Commonwealth have, in the past, operated in illegal markets, have done so today, and will continue to do so in the future,” Muradian said. “But there’s a distinction to it, and that’s that nothing is on a Massachusetts regulated platform. There are no consumer protections, no responsible gaming standard.
“[This bill is about] making sure it’s a regulated marketplace for everyone so it’s as safe a product as it can possibly be.”
There was mention of "black, unregulated markets," but in this context, Muradian was referring to offshore platforms, not sweepstakes.
“These illegal casinos are aggressively advertising to consumers, spending millions of dollars,” Pappas said. “And the consumers don’t even recognize that they’re engaging with an illegal, unregulated platform.
“The unregulated environment creates no protections for consumers. The unregulated environment creates no pathways for those people to get the help that they need. The unregulated environment creates a shame and a stigma where people feel embarrassed by what they’re doing without any ability to get the help.”
Conversely, Eileen McAnneny, the executive director of government relations for Encore Boston Harbor, opposed the bill, saying it could lead to a loss of up to 1,800 jobs and wrote, “Internet casino gambling is a bad bet for Massachusetts."
This bill is similar to Ohio HB 298—it would legalize online casinos but ban sweepstakes casinos. However, Governor Mike DeWine isn't exactly thrilled with the idea of legalizing casino play.
Social Gaming Leadership Alliance Testified
Also at the meeting was Sean Ostrow, the managing director of the Social Gaming Leadership Alliance. He was there on behalf of sweepstakes casinos and suggested regulation, including the following:
- 21-and-over minimum age requirement.
- Digital sales tax of 6.25% ($25.6 million in annual revenue for the state).
- Overall, it would be more than $30 million in annual revenue, including registration fees.
“The SGLA stands behind strong regulation and consumer protection, responsible social gameplay for adults only, fair taxation, and enabling economic development here in the Commonwealth,” Ostrow said. “We look forward to working with members of this committee to achieve these mutually beneficial outcomes.”
Ostrow also estimated that upward of 400,000 adults in Massachusetts are playing on sweepstakes/social-plus platforms.
