Online Gambling License in Massachusetts

The Massachusetts Gaming Commission is the regulatory body overseeing brick-and-mortar and online gambling operators in multiple industries, including casino gaming and sports wagering.

Currently, the Commission comprises 4 members – 1 chair and 3 commissioners, each appointed by the governor for 5-year terms. The responsibilities cover a vast number of duties, but the main goal of the Commission is to maximize customer protection and promote responsible gambling. They achieve this goal by taking the economic benefits of the industry while promoting responsible gambling and safe gaming practices, as stated in the MassGaming Goal and Mission.

Types of Gambling Regulated by the Massachusetts Gaming Commission

When it comes to gambling licenses, the Massachusetts Gaming Commission regulates gambling in the state. The following types of gambling are regulated:

Casino Gambling

The MGC plays an essential role in regulating all commercial casino operations. Since casino gambling was legalized in 2011 with the Expanded Gaming Act, the MGC oversees and ensures that all casino operations are fair and compliant with the legal framework. The Commission’s scope of regulation covers both resort-style casinos and slot parlors.

Resort casinos are large-scale gambling venues that often feature hotels, concerts, spas, and several other facilities. They bring in billions of yearly revenues, whereas slot parlors offer fewer amenities but still significantly contribute to the state’s gaming revenue.

The MGC ensures that slots and table games are fair, with licensed dealers and suitable equipment. Each casino’s gaming operations are subject to rigorous auditing to verify that games are being run according to the rules.

There are 2 types of casino gaming licenses that the MGC issues according to the Massachusets General Laws Chapter 23K:

• Category 1 License: Issued to resort casinos. Up to three Category 1 licenses can be issued, one each for the three designated geographic regions of the state (Western, Eastern, and Southeastern Massachusetts).
• Category 2 License: Issued to slot parlors. Only one Category 2 license can be issued in the state.

Sports Betting

Since Governor Charlie Baker signed the Act to Regulate Sports Wagering (House Bill No. 5164) on August 10, 2022, the MGC oversees the sports betting industry. The law Mass. General Laws c.23N sees 3 categories of sports betting licenses:

• Category 1 License – Licensed Casino
• Category 2 License – Racetracks and Simulcast Centers
• Category 3 License – Online and Mobile Operators

To obtain a license, applicants must complete a survey to start the application process. In addition to that, they must fill out the Business Entity Disclosure Form, showcasing the company’s operations and financial records.

MGC has awarded licenses to a couple of world-renowned brands so far, and they publicly state all new licensees on their website. The legal sports betting operators are taxed at 15% for retail betting and 20% for online betting of their gross revenue. Further on, the tax revenue is distributed to funds promoting well-being according to the MGL Chapter 23N.

Horse Racing

According to MGL Chapters 128A and 128C, the Division of Racing (a part of the MGC) is responsible for regulating and overseeing the horse racing industry, including betting. Each participant in horse racing also needs to be licensed by the Division to participate in the activities. The main role of the Division is to ensure horse well-being as well as safe and fair betting practices. However, it is important to know that Massachusetts has no active live thoroughbred racetracks.

Amongst the strict rules imposed by the MGC and the Division of Racing are the specific trainer manuals, the restrictions of TCO2 (total carbon dioxide) per animal and NSAIDs (non-steroidal anti-inflammatory medications).

Tribal Gaming

The Commonwealth of Massachusetts and the Mashpee Wampanoag Tribe have signed a compact governing Tribal Gaming in Southeastern Massachusetts. The Tribe has a decision of land-in-trust from the Department of Interior, allowing them to regulate the gambling operations and oversee them independently. However, the MGC has a list of responsibilities under the compact. They still oversee whether all IGRA and State laws are followed and regulate the gaming operations.

Regulatory Framework of the Massachusetts Gaming Commission

There are several legal acts outlining the duties of the MGC. First and most important is the Massachusetts General Law (MLG) Act. The act establishes the MGC and outlines the majority of its operation in Chapter 23K (Gaming Law).

This act also gives the main definitions and operational requirements for gambling businesses. Chapter 271 of the same act explains the forms of illegal gambling and the penalties/fines for violating them. Another relevant act is the Expanded Gaming Act and Chapter 194 of the same document. This law was adopted when casino gambling was regulated and legalized, outlining the responsibility of mentoring and ensuring responsible gambling practices of the Commission.

Lastly, a relevant document outlining the work of the Commission is the Sports Wagering Act, Chapter 23N – it creates the legal frameworks for sports betting and gives the Commission the power to oversee both online and retail casinos. At the moment, all the legal acts can be found in the Code of Massachusets Regulations on the MGC’s website.

FAQs about The Massachusetts Gaming Commission