Massachusetts Pushing For Online Casino Regulation But Faces Opposition
Massachusetts lawmakers have been debating the regulation of iGaming in the state, potentially positioning the Bay State to join the seven US states where online casinos are already regulated.
Rep. David Muradian Jr. has submitted House Bill 4431, which would give existing casinos the right to open three online casinos.
The bill has come under fire from iGaming opponents, including Wynn Resorts, which operates Encore Boston Harbor.
They argue that iGaming would cannibalize the physical casino market in the state while also increasing problem gambling.
Massachusetts Casinos
Massachusetts has three physical casinos – Encore Boston Harbor, MGM Springfield and Plainridge Park.
Between them, the casinos generate just over $100million a month in revenue. The state also has regulated sports betting, with both in-person and mobile betting options.
Across all metrics, gambling generates around $40m per month in taxes.
According to Wynn Resorts, whose Boston Harbor casino generates the most revenue of all retail casinos in the state, tax revenue could come under threat if lawmakers opt to move ahead with iGaming regulation proposals.
According to Bill 4431, the state’s three casinos would be entitled to operate three online gambling brands each.
The operations would be overseen by the Massachusetts Gaming Commission, which would ensure licensees abide by ID and age verification and other checks.
According to the bill and proponents of regulated iGaming generally, doing so would also help more closely manage gambling risks and help funnel legitimate players away from black market sites.
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Proponents of regulating the industry also point to the fact that many residents in the state already access online casinos, but they are forced to play at black market sites and under current regulations, it is impossible to properly protect consumers or promote responsible gambling programs.
Another benefit of regulation would be additional tax revenue for the state.
According to experts, the new market would generate between $170m and $200m in revenue every year.
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Wynn Resorts Opposition
In 2023, Wynn Resorts stopped offering its Wynn Bett product in eight of the 12 states in which it had operated. In February 2024, it also shuttered its sports betting service in Massachusetts.
At the time of the initial closures, Wynn cited a lack of iGaming legislation in US states, as well as overly competitive marketing costs, as the primary reasons for ceasing online operations.
Wynn Bet, the digital arm of Wynn Resorts, remains active in Nevada, New York and Michigan, although the company continues to monitor results and market performance and may make similar moves in these states in the future.
Wynn has claimed that regulating iGaming in the state would cannibalize the existing casino industry.
A spokesperson for the company gave evidence to the Joint Committee on Economic Development and Emerging Technologies hearing, pointing to its $15m tax contributions as well as its employment of 3,000 people, stating both figures would be hit by the proposals.
The bill will likely see continued debate, including from lawmakers and possibly from the state’s other existing casinos, in the coming months.
