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At the opening hearing, both sides warned lawmakers of the risks and rewards of legalizing online gambling in the state.
Encore Boston Harbor, in a letter to the state Legislature last week, blasted a proposed bill that would make online gambling legal in the state, saying it would “cannibalize” the brick-and-mortar casinos.
The issue came to a head at the Joint Committee on Economic Development and Emerging Technologies’ first hearing on the bill on Nov. 13.
Supporters say it would help curb illegal gambling and raise tax revenues. Opponents say it would result in retail casinos losing customers, resulting in a loss of jobs and taxes and increasing gambling addiction.
The bill, sponsored by Rep. David Muradian, would grant the Massachusetts Gaming Commission full regulatory authority over internet gaming, impose a 15% tax on adjusted gross revenue, and limit licensure to licensed casino operators.
If passed, iGaming would allow people to play digital slot machines, poker, blackjack, and other casino-style games from the comfort of their homes. (Online sports betting has been allowed in the state since 2023.)
Connecticut and Rhode Island have already passed iGaming legislation, joining New Jersey, Pennsylvania, Michigan, West Virginia, and Delaware, which have all legalized iGaming in some form.
State Sen. Paul Feeney also has similar legislation that would legalize and regulate online casinos.
Arguments for and against:
At the hearing last week, Muradian argued that legalizing iGaming would bring online gaming “out of the shadows” and under the oversight of the Massachusetts Gaming Commission.
He said the bill would let existing casino operators offer regulated online games, protect players through age and location verification, and require companies to monitor for problem gambling.
Muradian added that the measure would keep tax revenue in Massachusetts rather than sending it overseas.
However, Encore Boston Harbor, which sent a union representative to speak about the bill’s adverse effects, disagrees.
Eileen McAnneny, the executive director of government relations for Encore Boston Harbor, said in the letter to the committee that iGaming would cost nearly 1,800 employees their jobs.
She added that it would also result in the state’s GDP losing $450 million in associated costs, including lost tax revenue and higher expenses related to increased problem gambling.
“Internet casino gambling is a bad bet for Massachusetts,” McAnneny wrote.
PENN Entertainment, which owns Plainridge Park Casino, supports legalizing iGambling but says lawmakers must require all online licenses to be tied to brick-and-mortar casinos.
In doing so, Jeff Morris, VP of public affairs and government relations for PENN Entertainment, said in a letter to the Legislature that it would catalyze growth without taking away existing in-person business.
There are only three casinos in the state: Encore Boston Harbor, Plainridge Park Casino, and MGM Springfield.
Boston.com could not reach MGM Resorts International for comment.
Problem gambling on the rise:
At the hearing, issues revolving around problem gambling arose.
A recent UMass study shows that since its passage in March 2023, the number of people placing sports bets and experiencing gambling problems has steadily increased, rising from 20.9% in 2022 to 28% by 2024.
David Nangle, a former Massachusetts state representative and gambling addict, pleaded with the committee not to pass online gambling.
He cited Harvard T.H. Chan School of Public Health professor Shekhar Saxena, who warned that online gambling is 10 times more harmful than traditional gambling.
“It’s continuous, it’s intense, and it can be financially, physically, and mentally extremely harmful,” Saxena said during a panel.
“There’s no Narcan for gambling,” Nangle said. “Don’t turn every cellphone in Massachusetts into a casino.”
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