New Massachusetts Bill Backs Online Casinos, Targets Sweepstakes Platforms

The legislation, now with the Joint Committee on Economic Development and Emerging Technologies, positions iGaming as a tool to steer players away from unregulated markets while boosting state revenue and strengthening consumer protections.

Starting January 1, 2026, the bill would legalize online table games, poker, slots, and skill-based games, overseen by the Massachusetts Gaming Commission (MGC).

Licensing, Tax, and Responsible Gaming Provisions

Under the bill, existing casino operators—Encore Boston Harbor, MGM Springfield, and Plainridge Park - would be eligible to apply for online casino licenses. Each license-holder could operate up to three skins, which wouldn’t have to share the casino’s brand. This could allow popular platforms like FanDuel and DraftKings to partner with in-state casinos.

Online casinos would face a 15% tax on adjusted gross revenue. Funds from this tax would support a new Player Health Program, promoting responsible gambling and offering prevention and recovery services.

To ensure ethical operations, the bill outlines several safeguards:

• Bans on credit card deposits.
• No marketing that appeals to under-21s or targets college campuses.
• Prohibition of “risk-free” promotional language.
• AI-based monitoring of high-risk player behavior.
• A voluntary, national self-exclusion list.
• Authorization for Massachusetts to join multistate iGaming compacts like MSIGA.

Ban on Online Sweepstakes Gaming

Alongside iGaming legalization, the bill introduces a strict ban on online sweepstakes gaming. Defined as casino-like games awarding prizes by chance and using dual-currency models, these platforms would be illegal to operate, promote, or support.

Violators could face fines between $10,000 and $100,000 per offense, loss of gaming licenses, and up to two years in prison for repeat violations. The broad language of the bill could also apply to affiliates, payment providers, and other third-party services assisting such operations.

This move follows similar legislation passed this year in states like Montana, Connecticut, and New Jersey. New York and California are also considering bans.

Industry Pushback

The Social Gaming Leadership Alliance (SGLA) strongly criticized the proposal. Executive Director Jeff Duncan warned that the bill would criminalize legitimate, free-to-play social games.

“Massachusetts has long been a hub of innovation, technology, and economic leadership, but this proposal sends the wrong message,”Duncan said. “A blanket prohibition on social games would strip away lawful entertainment, criminalize legitimate businesses, and undermine an industry that... could add to the state’s annual revenue.”

Casino Revenue Flatlines as Gambling Sentiment Shifts

The proposal comes amid stagnating casino revenues in Massachusetts. In July 2025, total revenue rose just 0.02% year-over-year to $99.5 million. While Plainridge Park and MGM Springfield saw gains of 6.2% and 1.8% respectively, Encore Boston Harbor dropped 2.1% to $60.2 million—still accounting for over 60% of total casino revenue.

Slot revenues rose to $72.2 million statewide, but table game earnings fell to $27.3 million. A recent survey also found that public attitudes toward gambling are growing more negative, even as play intensifies.