Like many state governments across the United States, the state of Massachusetts is currently preparing its budget for the upcoming year. As a part of those budget negotiations, the state is looking to potentially open its borders to online poker, but those proposals would prohibit some companies from applying for a license.
Back in February, the Massachusetts legislature passed two bills to open up online gaming in the state. One was to allow for the sale of lottery tickets online but the second one is the bill that has brought the interest of the poker community. That bill, proposed by Senator Bruce Tarr, would allow for the issuance of licenses for online gaming to be overseen by the Massachusetts Gaming Commission.
When in was introduced in February, the Tarr proposal did have some caveats. The online gaming bill would not allow for slot-machine-type games, pretty much limiting any potential offerings to online poker, blackjack or other table games. In addition to that provision, Tarr did not have any language in the bill that would prohibit certain companies from applying for a license.
That changed last week, however, in a new amendment tacked onto the bill as it works its way through the Massachusetts legislature. That amendment will prohibit any company that accepted online bets in the United States after October 31, 2006 (the date that then-President George Bush signed the Unlawful Internet Gaming Enforcement Act). It would also prohibit a company that earns an online poker license from using software from a company that violated the UIGEA.
This means that PokerStars, along with its sister site Full Tilt Poker, would not be allowed into the proposed Massachusetts online poker industry nor could a licensee use their software as a platform.
The other provisions of the new online poker laws under consideration in Massachusetts spell out what the costs would be for companies. The licensing fee for such sites would be $10 million up front, with additional monthly fees that have yet to be determined. That fee would have to be paid within 30 days of receiving a license from the Massachusetts Gaming Commission and, if said company did not go live in that timeframe, an additional $25 million fine could be imposed for “acting in bad faith.”
At this time, the proposed law would only allow for three online sites to operate in the state. With two powerful Indian gaming organizations in Massachusetts (the Mohegan Tribe, the operators of the Mohegan Sun, and the Mashantucket Pequot Tribal Nation, owners of Foxwoods Resort Casino), it could be figured that they would get first crack at any online gaming licenses. That would leave only one other online gaming license up for grabs.
Massachusetts is joining a growing list of states that are examining the potential for legalization and regulation of online gaming in one form or another. States such as New York, California, Illinois, Pennsylvania and Iowa have at least seen a bill proposing online gaming to add revenues to state coffers, with varying levels of success. Two states, Kansas and New Mexico, have attempted to bar their governments from entering into the online gaming arena (both measures failed) and one, Utah, has actually been able to pass a measure to prohibit online gaming.
As of now, there are only three states that have passed any form of online gaming. Nevada, who has had regulations on the books the longest, currently restricts their online gaming to just poker but allows for multi-state “compacts” to partner with other states in the industry. The other two, Delaware and New Jersey, have passed laws for full-fledged online casinos and also have the multi-state options in their laws. Even though these three states have regulations on the books, no real-money online gaming operations have come online as of this time.
