Stephen Crosby Suggests the Slow Institution of Online Gaming Laws
The Massachusetts Gaming Commission’s chairman has asked the state legislature to withhold a decision involving online gambling until their panel awards casino licenses. Stephen Crosby, who is the chairman of the five-member commission, says the two issues are related, because online gambling could effect the revenues of the state lottery, as well as land-based gaming locations in the state.
On March 11, the Gaming Commission hosted an educational forum on the subject of Internet gambling, hoping to inform the public on issues that might arise and the progress which has been made to this point. Many politicians and citizens are concerned that instituting legal online casinos and poker rooms for Massachusetts residents could undermine the existing gaming industry in the state.
Much of the discussion focused on these concerns, though the meeting touched on the larger overview of gambling in the United States and Canada. Particular interest was paid to the states in which iGaming has been legalized in 2012 and 2013.
A number of issues were discussed during panel discussion. According to the Massachusetts Gaming Commission’s website .
- What are Internet gaming and social gaming?
- What is the status of Internet gaming nationally and globally?
- What is the legal status of Internet gaming in Massachusetts?
- What are the risks of Internet gaming: problem gambling, money laundering, and verification?
- What are the challenges and successes of Internet gaming in Nevada, New Jersey, Delaware, and the Canadian Provinces?
- Can the state lottery, Internet gaming, and casinos peacefully coexist?
The Gaming Commission came to three conclusions in reviewing the current situation in their state. One, regulators should go slowly while considering how or whether to legalize online gambling in Massachusetts.
Two, the commission must protect the lottery while preparing for the introduction of iGaming. Three, licensees should first be allowed to establish their brick-and-mortar operations before moving ahead to fully licensed online poker sites and Internet casinos.
How Massachusetts Differs from Nevada
In the three states in which online gambling has been made legal–Nevada, New Jersey, and Delaware–those issued a license were long time operators inside the state. For instance, the casinos in Las Vegas and Atlantic City were allowed to gain a license to operate casino and iPoker websites on the Internet. In Delaware, the three horse racing racecourses were given the same privileges.
Because the Massachusetts land-based gambling industry is not quite as longstanding or settled as the interests in the other states, it’s thought these operations should be allowed time to establish a clientele first.
The Time Table for Massachusetts Online Gambling
People who follow the slow build-up of the Massachusetts gaming industry should be able to guess the pace the gaming commission wants to establish. Only recently, the state awarded a license for land-based slot machines to Penn National Gaming for its operation in Plainville. Ground was broken for the new slots parlor only on March 14, 2014.
The $225 million facility is part of the Plainridge harness racing facility in Plainville, Massachusetts. The slots parlor is expected to open in the spring of 2015, so the commission members prefer to implement iGaming for an operation like Plainville sometime after next year at this time.
It’s still uncertain whether the Massachusetts Legislature, the General Court, will follow the stated wishes of the gaming commission, though the panel’s recommendations are likely to influence the development of Massachusetts gambling law.
Republicans Want Spending Curtailed
One issue which could put a dampener on the push for online gambling is a bill set to be put before the General Court by the state Republicans. The Massachusetts GOP is concerned about what they see as out of control spending. The Gaming Commission is one agency which has been the focus of criticism, after it spent $15 million of non-interest loans in a short span of time.
Republican Senate Minority Leader Bruce Tarr, Assistant Minority Leader Robert Hedlund, and Senate Minority Whip Don Humanson are about to partner with Senator Richard Ross to introduce a bill that would limit spending by government agencies and the interests who receive public funding. If the bill were signed into law, any agency receiving state funds would have to adhere to regulations on government spending.
Chances of New Bill Being Passed
Since the bill is being introduced by the party in the minority, such a bill might not be passed. Still, here during the tax season, Massachusetts taxpayers are not immune to concerns about overspending, so the Republicans in the legislature might find support on the other side of the aisle.
If so, then moves to provide more impetus to the land-based gambling operations might slow down. This could make the passage of pro-online gambling laws slower, in their turn.
