Massachusetts May Criminalize Online Gambling

April 08, 2010 | News Category: Gaming Law

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The state of Massachusetts is in the process of dealing with a gambling bill that would be positive for the land based gambling industry, and extremely negative for the online gambling industry.

While the bill proposes to allow two legal and licensed land based casinos and numerous slot machines that would be installed at the state’s ailing racetracks, it plans to criminalize online gambling in the state.

Hidden towards the end of the 172 page gambling bill, on page 123, can be found Section 36 (v), which clearly explains that those that are caught gambling in online casinos and in online poker rooms may be subject to a fine of up to $25,000, and a possible two years in prison.

The House Speaker for the state of Massachusetts, Robert DeLeo, introduced the gambling bill. Earlier this week, on Monday, the Joint Committee on Economic Development and Emerging Technologies approved the gambling bill with 12 votes for the bill, two against, and five abstentions.

DeLeo has been hoping to rush the gambling bill through the legislative process since he, and others, hope that the land based casinos will bring in revenue that is much needed by the state. Not only does the state want the tax revenues, the two resort style casinos will create around 15,000 jobs.

DeLeo has managed to gloss over the fact that there is anti-online gambling legislation in the bill, which could cause an uproar from voters. Because of the controversial nature of Section 36 (v), Governor Devel Patrick has suggested that a public hearing should take place in order to allow Massachusetts’s citizens the chance to voice their opinions. DeLeo would prefer to go forward with the bill, since he said that the arguments against the bill have already been heard in the past.

Should this gambling bill pass, Massachusetts will join Washington State, which is currently the only state that has made online gambling a criminal offense at this time.

Joe Brennan, the chairman of iMEGA (Interactive Media Entertainment and Gaming Association) said: "It’s problematic from a civil liberties point of view. The fact that the language is still contained in the bill is a major point of concern."

Brennan had testified before the Joint Committee on Economic Development and Emerging Technologies about two years ago. "I testified before the state assembly a couple of years ago and said that it’s ludicrous to try to protect this in-state industry by making an activity that is wholly legal offline punishable by two years in prison if you do it online," says Brennan.