Massachusetts online gambling bill may prohibit sweepstakes casino play
Representative David Muradian’s legislation states it’s ‘in the best interests’ of Massachusetts to begin regulating online casinos to protect gamblers from the illegal black market.
Key Points
- The proposal would place authorization of online table games, slots, poker, peer-to-peer and skill-based games under the oversight of the MGC
- iGaming operators would then be taxed at a rate of 15% on adjusted gross revenue, compared to the 20% rate currently in place for online sportsbooks
Massachusetts Representative David Muradian has introduced House Bill 4431 which would prohibit any online game, contest or promotion that simulates casino gaming, lottery or sports betting and utilizes a dual-currency system of payment.
The bill would not only criminalize any sweepstakes operators attempting to conduct business within the state, but also take action against any person or entity that supports the promotion of online sweepstakes gameplay.
Representative Muradian’s legislation states it’s “in the best interests” of Massachusetts to begin regulating online casinos to protect gamblers from the illegal black market.
The proposal would place authorization of online table games, slots, poker, peer-to-peer and skill-based games under the oversight of the Massachusetts Gaming Commission (MGC), as well as tax iGaming operators at a rate of 15% on adjusted gross revenue, compared to the 20% rate currently in place for online sportsbooks.
Any sweepstakes operators or entities found to be in violation of House Bill 4431 would be fined between $10,000 and $100,000 per offense and risk losing its gaming license, while repeat offenders could face up to two years in prison.
Groups such as the Social and Promotional Games Association (SPGA) commented on the news, having said, “Lawmakers moving to ban sweepstakes while introducing iGaming demonstrate a poor understanding of the sweepstakes model and undue deference to iGaming lobbyists.
“Instead of a blanket ban, Massachusetts could embrace oversight and regulation, securing millions in potential tax revenues, instead of deciding for its residents what games they can – and can’t – play on their mobile phones.”
Good to know: The MGC released the state’s sports wagering and casino activity for June 2025 on July 22, having increased its sports betting revenue by 53.4% from the prior year period to $62.1m
According to the legislation, portions of the tax revenue collected from iGaming operators would go towards a new Player Health Program to promote responsible gambling and provide services for problem gambling prevention, treatment and recovery.
Holders of a Massachusetts gaming license would also be eligible to apply for an online casino license through the legislation, including operators such as Penn Entertainment and MGM Resorts.
If signed into law, House Bill 4431 would officially go into effect on January 1, 2026, requiring final approval from Massachusetts Governor Maura Healey.
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