Massachusetts Online Gambling On Hold Until 2015

Home » Poker News » Massachusetts Online Gambling On Hold Until 2015

Friday, April 18th, 2014 | Written by Charles Washington

Recently, Massachusetts emerged as a frontrunner to legalize online gambling in 2014, with some of the state’s chief advocates speaking out in favour of igaming expansion including State Senator Bruce Tarr, and State Treasurer and Gubernatorial candidate Steve Grossman. However, that is now unlikely to happen until next year, after iGamingPlayer reported James McHugh, a Commissioner on the Massachusetts Gaming Commission, told the USA Online Gambling Forum that the “iGaming bill will not pass in this session but is a serious effort.”

Mass. takes cautious approach to online gambling

Last month, James McHugh’s positive views on the future of online gambling in Massachusetts created a great deal of optimism in the igaming world, and thrust The Bay State to the forefront of the list of US states expected to introduce regulation this year.

Now, however, it appears conservatives voices in Massachusetts may have persuaded lawmakers to take a more “wait and see” approach towards online gambling, such as that of State Senator Jennifer Flanagan, who in the past has called for a more cautious and measured approach to internet gambling.

Massachusetts now joins several other US states, such as New York, Pennsylvania and Maryland, who prefer to see how the regulated markets of New Jersey, Nevada, and Delaware mature before deciding whether to throw in their lot. Therefore, it seems that next year or even 2016 may realistically be the years real progress is made on the legalized igaming front.

Massachusetts internet gambling bills

Last year, Massachusetts was one of the busiest states trying to introduce online gambling, but efforts there eventually faltered after lawmakers failed on three separate occasions to advance igaming legislation. The first effort was attached to the state’s budget, while a subsequent standalone bill (S 197) would have allowed online casino games and the other separate bill (S 101) would have created an online lottery. Currently these two bills are still under consideration by the state’s legislature, with proposed bill SB 101 seen as a first step towards legalized online gambling by allowing the State Lottery room to also experiment with offering other online services, such as poker or gambling. As State Lottery Assistance Executive Director Beth Bresnahan told the Committee on Consumer Protection and Professional Licensure at the time:

“We are not proposing to offer these games to our players with an actual cash transaction, nor are we seeking any appropriation to fund such operations. Rather in the interests of preserving and protecting the Lottery, we simply want to ensure that we have a solid understanding of the technology and logistics of online gaming should this market space become more competitive. Existing law does not permit us to conduct such experimentation.”

Mass. Gaming Commission has a lot on its plate

The northeastern state of 6.7 million people only signed a bill legalizing brick & mortar casinos in November 2011, with the newly created five-member Massachusetts Gaming Commission now tasked with overseeing the construction of three brand new resort casinos in the state, as well as developing a regulatory model for Massachusetts.

The slow and steady approach taken by the Massachusetts Gaming Commission as regards online gambling is widely seen as allowing its land-based casinos enough time to get up and running before expanding into igaming.

Rhode Island eyes casino expansion with trepidation

The decision by Massachusetts to permit the building of three casinos, as well as granting a slot parlor license to Plainridge Racecourse located just 20 miles from the Twin River Casino in Rhode Island, has left its neighboring state fearing a future budget disaster. Plainridge Racecourse is a cash cow which pumps in $300 million annually into Rhode Island’s state treasury.

Furthermore, around half that money is spent by Massachusetts residents, most of whom will be less inclined to visit the track after they have their own home spun venue. In fact, Rhode Island has estimated that its state coffers would suffer to the tune of $422 million from 2015 through to 2019, which will then have a major impact on RI’s ability to finance its own services. Once casinos lose customers to more convenient locations, it then becomes extremely difficult to get them to return, and as casino expert Mark W. Nichols from the University of Nevada Reno, recently told The Boston Globe:

“It’s tough for casinos to respond to increased competition that has a locational advantage. They will try with marketing to differentiate themselves, but if you’re a casino 10 miles from a population, you have a huge advantage over a casino that’s 30 or 40 miles away.”