Online poker language introduced in Massachusetts
Bill would permit no more than three online poker licences and post-UIGEA operators would be blocked
An amendment that would legalise and regulate online poker in Massachusetts has been attached to the state’s budget bill and attracted support from 18 House of Representatives members.
The amendment to House Bill 3400 proposes no more than three online poker licences would be granted by the Massachusetts Gaming Commission, the same number of land-based casinos permitted under state law. Each licence would last for 10 years and would come with a fee of US$10m, initially applied to the first $10m in taxes or cover the first two years if $10m in taxes are not payable during that time.
All operators, software providers, payment processors and affiliates must be located in the state, which has a population of more than 6.5 million, while only players physically present in the Massachusetts would be allowed to place bets. No tax rate has yet been suggested.
Mirroring the amendment made to Nevada’s online poker regulation, the Massachusetts bill includes a provision to block companies that willingly accepted bets from US customers after the Unlawful Internet Gambling Enforcement Act of 2006 was enforced. It further prohibits operators from displaying the trademark or brand name, business information or any information acquired or derived from a wager US customers after 13 October 2006.
A similar provision was added to Nevada’s online poker law in February, blocking post-UIGEA operators from licensure for a period of five years. Meanwhile in Illinois language proposing the same rule but for a longer period of 10 years was removed from the state’s online gambling bill in March.
The amendment to Massachusetts’ budget bill, first published by LegalPokerSites, argues that “hundreds of thousands” of Massachusetts residents already play online poker through illegal offshore websites, which do not pay taxes or adhere to customer protection laws. The language outlines how a “rigorous” regulatory and licensing scheme for internet poker would provide millions of dollars in additional annual revenue and aid to local communities, creating over a thousand high-paying jobs in the technology sector.
In May last year eGR North America reported that Massachusetts Representative Dan Winslow was pushing for online poker legislation in 2013, having failed in his previous attempt in 2011. At the time Winslow suggested a 25% gross revenue tax would be implemented.