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The push to legalize online casino gaming in Massachusetts has hit yet another obstacle after key officials pumped the brakes on Rep. David Muradian’s H4431 proposal. The delay appears deliberate, and the underlying reason is likely concern over the potential threat legalized online casinos pose to the state’s lottery revenue.
Lawmakers weigh economic upside against gambling risks
The recent delay stems from disagreement among lawmakers over whether the benefits of legalizing real-money online casinos outweigh the associated social and economic risks. The Legislature voted to extend the reporting deadline for Muradian’s proposal to March 16.
State Treasurer Deborah Goldberg, who oversees the Massachusetts Lottery, has emerged as a leading opponent of online casino legalization. Citing a limited marketing budget, she argues the lottery cannot compete with online casinos and their flashy, engaging games that are easily accessible on mobile devices.
Other notable opponents include Gov. Maura Healey and Sen. John Keenan. Their primary concerns center on the risk of problem gambling and whether the state has adequate consumer protections in place. In short, they want assurance that online casino gaming would not harm residents before lending their support.
Online casinos vs. the lottery: a revenue showdown
The Massachusetts Lottery generates significant revenue for the Bay State, with proceeds funding local projects and programs that directly benefit residents. Some officials worry that legalized online casinos would compete for the same gambling dollars, potentially reducing lottery revenue.
The lottery is already facing competition from sports betting, which was legalized in 2023. In 2024, Healey expressed concern for the lottery’s long-term viability while backing legislation to allow online lottery ticket sales as a way to level the playing field.
“We have casinos in the state. We also have DraftKings here in the state, and a lot of money is being spent there by a lot of people,” Healey said at the time.
“What we also have is a lottery system that right now isn’t able to compete against a DraftKings. Nothing against DraftKings, but the Lottery — that’s money coming back to cities and towns. The money spent on DraftKings is going to DraftKings.”
Not everyone agrees that legalizing online casinos would harm the lottery. Some experts argue the opposite, contending that online casinos would expand the overall gambling market, including lottery ticket sales. Still, skepticism remains among many officials. As a result, legal gambling options in Massachusetts remain largely limited to sports betting and the lottery, preserving the lottery’s dominant position — at least for now.
Massachusetts players turn to offshore casinos
While online casino gambling is not legal in Massachusetts, residents can and do access offshore gambling sites. These unregulated operators fill the void but lack consumer protections such as fair-play guarantees and responsible gambling tools. Players also face the risk of not being paid if they win.
As officials continue debating legalization, Massachusetts residents are likely to keep playing on offshore platforms. In the meantime, the state loses potential tax revenue. There is also the risk that players develop long-term loyalty to offshore brands, making it harder to transition them to regulated Massachusetts platforms if legalization eventually occurs.
In this sense, the state’s delay tactics may be counterproductive. Efforts to protect residents from gambling-related harm may instead be pushing them toward illegal and riskier alternatives.
Online casino legalization remains in limbo
While the Massachusetts Lottery can breathe easier for now, the future of online casino gaming remains uncertain. Extending the reporting deadline suggests lawmakers are not yet prepared to chart a clear path forward. Additional studies and discussions around safeguards are likely, which could further delay any decision.
Meanwhile, pressure is expected to build. Players may grow increasingly frustrated by limited legal options, operators will continue lobbying efforts, and projected tax revenue figures will rise as neighboring states with legalized online gambling continue to demonstrate its fiscal potential.
