Massachusetts legislators are currently reviewing the potential approval of online casino gambling. Last week, the Joint Committee on Economic Development and Emerging Technologies heard testimonies highlighting significant disagreements between traditional casino operators and online gaming advocates.
Wynn Resorts, via its Encore Boston Harbor facility, appealed to lawmakers to oppose such measures. Eileen McAnney, the executive director of government affairs for Encore Boston Harbor, cautioned that legalizing online gambling could lead to increased addiction rates and divert revenue from physical resorts, threatening the livelihood of approximately 3,000 employees and the roughly $15 million monthly gaming taxes the casino provides to state coffers.
“The argument stating that online casino gambling will enhance state revenue overlooks the extensive cannibalization of land-based gaming taxes, the loss of income from hotels, restaurants, and entertainment, as well as job cuts, diminished tax income from local businesses, and the various social afflictions linked to increased gambling issues, bankruptcy, health care expenses, homelessness, domestic strife, and legal repercussions,” McAnney argued.
Encore currently dominates Massachusetts’ casino sector, with an average gross gaming revenue of approximately $60 million monthly over the past year. In comparison, MGM Springfield has seen monthly averages near $20 million, while Plainridge Park’s slot machines average around $15 million.
Despite previously operating online casinos and mobile betting platforms across several states, Wynn has ceased all online betting activities, a stance it shares with Las Vegas Sands, contrasting with MGM Resorts and Caesars Entertainment. As it stands, only seven states permit iGaming: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia.
Proponents for online gambling informed the lawmakers that banning these activities hasn’t deterred online gaming in Massachusetts. John Pappas from the iDevelopment & Economic Association noted that offshore sites are actively targeting Massachusetts residents.
“To be clear, online gambling is occurring in the commonwealth. A recent study conducted with one of our member firms, GeoComply, indicated that residents are engaging with illegal gaming sites. The data shows that over 250,000 searches for online casino and poker information occur monthly, leading to 1.2 million visits to unauthorized platforms,” Pappas stated.
“These illegal casinos are heavily marketing to the public, often without individuals realizing they are using forbidden gambling services,” he continued.
DraftKings, based in Boston, asserted that regulating online gaming would ensure consumers collectively move towards vetted options and would generate tax revenue. Rebecca London, senior manager of government affairs at DraftKings, informed lawmakers that the company supports over 1,300 jobs in Massachusetts and forecasts that Representative David Muradian’s proposal could yield between $170 million and $200 million in annual tax revenue.
London mentioned that Senator Paul Feeney’s proposal could reach $275 million, given its distinct tax framework and specific treatment of dedicated online operators. She also highlighted potential consumer protections, particularly for “problem gamblers.”
Massachusetts has gradually expanded its gambling landscape, permitting resort casinos in 2011, embracing sports betting in 2022, and enabling online Lottery operations set for 2024. In September, casinos contributed $27 million in taxes, with sports betting adding around $10 million, half of which came from DraftKings.