Massachusetts An Exemplary Model For Gambling Regulation

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Thursday, August 25th, 2016 | Written by Charles Washington

While many states were ahead of Massachusetts when it came to legalizing casinos, the Bay State is taking an approach to gambling that other states might look to in the future as a set of best practices. Here are some of the features that other states could emulate when enhancing their own gaming regulations:

1. Limits on Licensing

To allow casinos to have a chance to obtain a fair market share, Massachusetts only issued a limited number of casino licenses. This prevented the over-saturation that has occurred in other states that failed to take the sizes of their populations into consideration when introducing or expanding gaming.

2. Requiring Community Approval

Massachusetts lawmakers realized that in order for gaming to benefit communities, those communities needed to welcome the casinos fully. As a result, they required local voters to approve plans for new casinos through referendum votes. Then, casino projects were put through a grading process to assess their suitability for the intended locations. This ensured that only the best projects were approved.

3. Straightforward Laws

While their business may be at risk, casino operators are unwilling to gamble on uncertain financial futures. Massachusetts helped to attract reputable operators by providing reasonable tax rates that were guaranteed to remain stable over time.

4. Extensive Research

Part of what made Massachusetts late to the gaming party, so to speak, was their commitment to doing things right. Before drafting regulations, the state funded studies to investigate both the positive and negative impacts of gambling. Unlike other states that have viewed this type of research only as a prerequisite for legislation, the Bay State has continued on with its research efforts through comprehensive programs.

With casinos now operating, the state is investing money to determine things like the impact of gambling on crime rates, addiction rates and other local businesses. This type of research will allow Massachusetts to fine-tune regulations and address any social or economic problems posed by gambling with more measured approaches.

GameSense

Massachusetts developed the GameSense program to help ensure responsible gaming. At the state’s casinos, GameSense employees work 16 hours per day. They greet casino goers and discuss gambling with them, educating them on how casino games work. They teach responsible betting strategies and can assist people who fear they may have a gambling problem with getting help and having their names added to the state’s self-exclusion lists.

PlayMyWay

Another innovative player protection program is PlayMyWay. The purpose is to help keep people at risk of gambling addiction from overspending at the casino. Players voluntarily sign up for the program either online or with the help of a GameSense employee. Once they are members, they can set a monthly, weekly or daily limit on gambling losses and have it tied to their player cards. When they reach that limit, the gambling machine will ask them if they want to continue. They are not cut off completely; it’s possible to override if they wish to keep playing, but they will have been made aware of how much they have lost.

Mass. First Casino Opened in June 2015

Massachusetts’ very first regulated casino opened in June, 2015, and after one year in operation the Plainridge Park slots-only operation generated an impressive $180 million in revenues. The state then received $88.2 million by way of state taxes, which was subsequently channeled towards local projects and the state’s racehorse industry.

Additional benefits of the casino includes providing gainful employment for at least 500 people, of which around 20% had previously been unemployed. The Bay State is now expecting to open two more gambling venues within the next three years, including the MGM in Springfield (2018), and Wynn Boston Harbor in Everett (2019). Massachusetts’ three casinos are then forecast to generate revenues in excess of $300 million per annum.

This month, Massachusetts also signed into law an economic development bill, H.4569, that legalizes daily fantasy sports betting. Amongst its requirements is that players should be at least 21 years-old, and spend no more than $1,000 per month unless they can provide proof that they are able to afford the losses. Betting on amateur or college sports will also not be allowed. After signing H.4569 into law, Governor Charlie Baker commented:

“What I believe we were doing was simply taking what the attorney general put out there as sort of directional guidance and turned into a statute so that a company like DraftKings — which is big and successful in the consumer online business — can continue to be headquartered here in the commonwealth.”