New Massachusetts iGaming Bill Would Ban Sweepstakes Casinos

Massachusetts lawmakers are reviewing a new proposal that would expand legal online gambling in the state while simultaneously banning sweepstakes-style casinos. House Bill 4431, filed earlier this week by Rep. David K. Muradian, Jr., is the third piece of iGaming legislation to be introduced in the state this year. The bill was referred to the Committee on Economic Development and Emerging Technologies for consideration.

A laptop showing an online casino key alongside poker chips. (Source: Alamy)
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House Bill 4431 seeks to authorize the state's three existing land-based casinos, Encore Boston Harbor, MGM Springfield and Plainridge Park Casino, to participate in online casino gaming through partnerships with up to three iGaming skins each. The bill defines iGaming as including poker, blackjack, craps, roulette, slot machines and other games substantially equivalent to those found at physical casinos, along with any additional games approved by the Massachusetts Gaming Commission.

Under the framework outlined in the bill, iGaming operators would be taxed at 15% of adjusted gross revenue. Each operator receiving an iGaming license would be required to pay a $100,000 licensing fee, with annual renewal fees also set at $100,000.

Operators offering iGaming skins would be required to pay a $50,000 nonrefundable license and application fee. The legal age for participation in online casino games would be 21, and the use of credit cards to fund accounts would be prohibited.

If passed, the bill would take effect on January 1 of next year, creating a defined timeline for the state to establish regulatory oversight and licensing procedures. While the legislation positions Massachusetts to join a growing number of states that have legalized online casino gaming, it also takes a firm stance against certain types of online sweepstakes operations that have drawn national attention.

The proposal specifically prohibits the operation, promotion, or facilitation of dual-currency sweepstakes games within Massachusetts. These games are defined as internet-based contests or promotions that award prizes based on chance and use a dual-currency system that allows players to purchase virtual currency and later exchange it for cash, prizes, or equivalents.

Such games often mimic casino-style offerings, including slot machines, video poker, table games, lottery-style games and even sports wagering simulations.

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To enforce this prohibition, the bill establishes penalties for violations. Any individual or company found to be operating or promoting sweepstakes casinos could face fines ranging from $10,000 to $100,000 per offense.

In addition to financial penalties, operators may also risk the suspension or loss of their gaming licenses. Repeat violations could carry even harsher consequences, including increased fines and potential imprisonment for up to two years.

The legislation reflects a growing debate across the country about the rise of sweepstakes casinos, which often operate in a legal gray area by using dual-currency models that blur the line between gambling and promotional contests. By moving to outlaw these platforms, Massachusetts would join other states that have taken action to limit their presence, citing consumer protection and regulatory oversight concerns.

Rep. Muradian's proposal adds to an already active year for gaming legislation in Massachusetts. Earlier bills introduced this year also sought to address online casino expansion, though none have advanced to a full legislative vote. With HB 4431, lawmakers must now weigh both the potential revenue benefits of regulated iGaming and the risks associated with unregulated sweepstakes-style gaming platforms.

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