Massachusetts Lawmakers Take Aim at Sweepstakes Casinos
The sweepstakes regulation battle has now joined Massachusetts, after Rep. David K. Muradian Jr. introduced a new online casino bill this week that would ban sweepstakes casinos if legalized.
Currently being considered by the Committee on Economic Development and Emerging Technologies, Bill H4431 defines online sweepstakes casinos as any contest based on chance that uses a two-currency model, awards cash or cash equivalents, and simulates casino-style play such as slots, poker, or sports wagering. The dual currency system is central to sweepstakes casinos.
The Social Gaming Leadership Alliance (SGLA), a trade group representing social casino and sweepstakes operators, has strongly opposed the measure, warning it could have unintended consequences.
SGLA says that the bill’s vague definitions risk penalizing companies beyond sweepstakes operators, including payment processors and other service providers. The group also claims the bill could criminalize legitimate businesses if enacted in its current form.
“Massachusetts has long been a hub of innovation, technology, and economic leadership, but this proposal sends the wrong message. Voters do not want bans. They want smart rules that protect consumers, preserve choice, and strengthen the economy,” said the Executive Director of the SGLA, Jeff Duncan, in a statement.
The SGLA maintains that modernizing regulations to include taxation could generate state revenue, rather than forcing the industry further into legal uncertainty. Nationwide, illegal and offshore gambling already accounts for nearly a third of wagering, with an estimated 74% of bets placed outside state-regulated channels.
Moves against offshore operators
Alongside legislative efforts, Massachusetts regulators are stepping up enforcement against unlicensed gambling websites. The Attorney General’s Office (AGO) confirmed it has issued cease-and-desist letters to BetOnline.ag and Sportsbetting.ag, two offshore platforms accused of targeting Massachusetts residents without approval from the state’s Gaming Commission.
According to the AGO, both operators offered a full range of casino-style games, including slots, blackjack, roulette, baccarat, and poker, in addition to betting on U.S. sports leagues and horse races. The letter alleges the companies actively promoted their services through marketing that referenced U.S. teams, players, and domestic content creators, despite lacking the required state licenses.
The action seems to be part of the AGO's broader campaign to mitigate gambling-related risks, particularly among young people. In 2024, Attorney General Andrea Campbell set up the Youth Sports Betting Safety Coalition to teach families about gambling laws and prevent young people from being exposed to betting sites.
As well, in 2024, the AGO sent a cease-and-desist letter to the offshore operator Bovada after it was illegally offering its services to residents in the state.
With Bill H4431 still in committee and regulators cracking down on offshore operators, Massachusetts seems set for a big shakeup in the online gambling landscape, one that could change the way that both licensed and unlicensed platforms operate in the state.
