Massachusetts Lawmakers to Consider iGaming Legalization

Massachusetts lawmakers will have at least two iGaming bills to consider as the state moves into its 2025 legislative session.
Two identical bills, one filed in the general assembly and another in the senate, will legalize and regulate iGaming in the commonwealth. Online casino licenses will be available for licensed brick-and-mortar casinos and other non-gaming licensees that permit the operation of iGaming.
Under the legislation, authorized games include but are not limited to poker, blackjack, craps, roulette, cards, slots, and any other games typically offered at a casino.
Casinos, Online Gaming Operators Eligible for Licenses
Sen. Paul R. Feeney (D – Bristol and Norfolk) and Rep. Daniel Cahill (D – 10th Essex) last week introduced the companion bills in their respective chambers. The bills seek to legalize iGaming and set a tax rate of 20% of adjusted gross revenues, the same rate online sports betting operators are taxed.
The Massachusetts Gaming Commission will regulate and license iGaming in the commonwealth.
The legislation calls for two types of iGaming licenses, Category 1 and Category 2 licenses. Category 1 licenses will be available for the three full-service licensed brick-and-mortar Massachusetts casinos, while Category 2 licenses will be available for non-gaming licensees that permit the operation of iGaming, such as FanDuel or DraftKings.
Each casino with a Category 1 license will be able to partner with up to two iGaming platforms to offer online casinos. Each iGaming platform may also use a “second distinct brand to offer poker,” according to the bill.
Four Category 2 licenses will be available in the state. If more than four companies apply for an iGaming licenses, the Massachusetts Gaming Commission will issue licenses to applicants based on the following factors:
- Expertise in the business of iGaming
- Integrity, sustainability, and safety of the iGaming platform
- Past relevant experience of the applicant
- Advertising and promotional plans to increase and sustain revenue
- The amount of adjusted gross internet gaming receipts and associated tax revenue the applicant is projecting
- Demonstrated commitment to and plans for the promotion of responsible gaming
- Capacity to increase the number of bettors on the applicant’s platform
- History of doing business in the commonwealth
Tax Revenues, License Fees Earmarked for General Fund
Each iGaming license carries a hefty fee for its holders. An operator license will be issued for a 5-year period upon payment of a $5 million initial licensing fee. The licenses may be renewed for 5-year periods for a $5 million renewal fee.
Tax revenues associated with iGaming will be distributed as follows:
- 45% to the general fund
- 17.5% to the Workforce Investment Trust Fund
- 27.5% to the Gaming Local Aid Fund
- 1% to the Youth Development and Achievement Fund
- 9% to the Public Health Trust Fund
Revenues dedicated to the Workforce Investment Trust Fund will be used to develop and strengthen workforce opportunities for low-income communities and vulnerable youth and young adults in the state.

Robert Linnehan
Covering regulatory developments in online gambling. Editing/writing/creating a newsletter for readers across all formats.