Massachusetts Online Casinos
Efforts to regulate Massachusetts online casinos are gaining momentum amid the state’s expanding gambling landscape and recent legislative developments.
A regulated Massachusetts online gambling market could generate hundreds of millions of dollars in new tax revenue while establishing critical consumer protection measures. However, proponents are taking a measured approach to address concerns from local stakeholders and responsible gambling advocates.
While lawmakers consider the implications of legalization, many residents have already turned to sweepstakes casinos, which provide a legal workaround to play casino-style games and win real money.
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Sweepstakes Casinos in Massachusetts
The absence of legal online gambling in Massachusetts has led to the rise of sweepstakes casinos as the primary alternative for residents.
Online sweepstakes casinos offer casino-style games like slots, blackjack, and roulette but operate under federal sweepstakes law rather than traditional gaming statutes by employing a dual-currency model:
- Players can purchase “Gold Coins” for entertainment and non-cash play.
- Players can obtain “Sweepstakes Coins” through promotions or free entry methods and can redeem winnings for cash prizes.
This structure aims to satisfy Massachusetts gambling laws that permit contests with cash prizes if there are ways to obtain free entry with no purchase necessary.
Recommended Sweepstakes Casinos in Massachusetts
Legal Concerns Related to Sweepstakes Casinos
Massachusetts sweepstakes casinos operate in a legal gray area.
Although sweepstakes casinos adhere to state law, their resemblance to online gambling invites scrutiny from state officials and exposes them to legal action.
Massachusetts officials have yet to issue public statements or initiate legal action against sweepstakes casinos, but actions taken in other states illustrate the risks operators face:
- Reinterpreting existing laws to find sweepstakes casinos illegal
- Issuing cease-and-desist orders to sweepstakes casino operators
- Passing new legislation or amending existing laws to specifically target sweepstakes casinos
- Investigating sweepstakes operators for deceptive marketing practices or violations of consumer protection laws
- Determining that sweepstakes casinos do not qualify as legitimate sweepstakes promotions under state law
The lack of concrete action suggests tolerance for now. However, any perception that sweepstakes casinos undermine Massachusetts’ regulated gambling sector or harm consumers could trigger regulatory intervention.
Massachusetts Law on Sweepstakes Casinos
Massachusetts law exempts sweepstakes from classification as illegal gambling if they meet two requirements:
- Function as promotions for the legitimate sale of products
- Offer a method of free entry, with no purchase necessary
Sweepstakes casinos meet both conditions by selling Gold Coins (which hold no cash value) and providing free methods for obtaining Sweeps Coins (redeemable for cash prizes).
However, Massachusetts regulations prohibit sweepstakes designed to circumvent state gambling laws.
Additionally, 940 CMR 30.05 outlines the criteria for determining whether gambling is the primary purpose of a sweepstakes promotion.
Should state officials decide to pursue enforcement action against sweepstakes casinos, operators would be hard-pressed to argue that they don’t meet some of those criteria:
- The marketing approach, including “whether it appears or is designed to appear similar to a casino”
- The primary motivation of the operator and participants (whether they focus on the product or the sweepstakes itself)
- Whether sweepstakes promotions are occasional or continuous
Class Action Lawsuit Filed in Massachusetts
Legal action from the state isn’t the only threat sweepstakes casinos face in Massachusetts.
In January 2025, an attorney with Smith Krivoshey PC filed a lawsuit against VGW Holdings in Suffolk County on behalf of a plaintiff identified as “M.M.”
The suit accuses VGW Holdings, the parent company of Chumba Casino and Global Poker, of:
- Offering illegal online gambling in Massachusetts under the guise of sweepstakes promotions
- Violating state gambling laws
- Engaging in deceptive practices
Prominent gaming attorney Daniel Wallach noted in a LinkedIn post that the lawsuit aims to recover gambling losses on behalf of all Massachusetts residents.
Although the lawsuit is still in its early stages, it is another example of the challenges Massachusetts sweepstakes casinos face.
Will Massachusetts Legalize Online Casinos?
The prospect of Massachusetts legalizing online gambling is uncertain, but legislative momentum is building.
Lawmakers have introduced online casino bills in nearly every legislative session over the past decade, including two bills in 2025.
Unlike other states, Massachusetts does not face major roadblocks such as opposition from entrenched tribal gaming interests.
Instead, the primary discussions center on balancing economic benefits with potential impacts on land-based casino revenue and responsible gambling concerns.
Factors Favoring Legalization
Legalization Challenges
How Massachusetts May Regulate Online Casinos
A pair of companion bills (SD 2240 and HD 4084) introduced in early 2025 provide insight into how Massachusetts lawmakers may approach regulation.
The bills propose a two-tier licensing system:
Category 1 Licenses
- Available to each of the state’s three land-based casinos
- Land-based casinos may partner with up to two third-party operators to offer online gambling and poker
- Licensees may operate one online casino brand, a separate online poker brand, or offer casino games and poker under a singular brand
Category 2 Licenses
- Four untethered online casino licenses
- Available to commercial online gambling operators without a physical presence in Massachusetts
Additional Key Rules
- $5 million initial five-year license fee
- 20% tax on online casino revenue
- Consumer protection rules, including regular compliance audits, mandatory self-exclusion offerings, and responsible advertising requirements
Massachusetts Online Gambling Market Potential
Although market research into the Michigan online gambling market is limited, even conservative estimates highlight the enormity of the opportunity.
Extrapolating the per capita figures from other states in the region, the Massachusetts online gambling market could eventually generate gross gaming revenue ranging from just north of $1 billion to nearly $2 billion annually.
Similarly, applying potential tax rates to those estimates yields projected annual tax revenue ranging from nearly $180 million to more than $350 million.
Online Gambling Revenue in Neighboring States for Comparison
| State | 2024 iGaming GGR | 2024 GGR Per Capita |
| New Jersey Pop: 9.5M MHI: $101K | $2.39 billion | $251 |
| Michigan Pop: 10M MHI: $71.1K | $2.4 billion | $240 |
| Pennsylvania Pop: 13M MHI: $76K | $2.18 million | $167 |
MHI = Median Household Income
The Massachusetts Opportunity
- Population: 7.1 million
- Median household income: $101.3K
- Low-end GGR ($167 per capita): $1.19 billion
- High-end GGR ($251 per capita): $1.78 billion
- Low tax rate (15%) tax revenue range: $178.5-$267 million
- Proposed rate (20%) tax revenue range: $238-$356 million
A research report published by Vixio GamblingCompliance in 2024 arrived at similar figures, albeit in the lower range compared to the above estimates.
According to the report, a regulated Massachusetts online gambling market could generate the following revenue and tax totals annually:
- $1.189 billion in gross gaming revenue
- $208.1-$392.5 million in tax revenue, depending on the tax rate
Initial Licensing Fees
One recent proposal suggests assessing a $5 million fee on Massachusetts online casinos for initial five-year licenses.
With up to six Category 1 licenses (two per land-based casino) and four Category 2 licenses available, Massachusetts could collect up to $50 million in upfront licensing fees over the first five years.
Massachusetts Online Gambling FAQ
Wes Burns has more than a decade’s worth of experience as a writer, researcher and analyst in the legal gambling industry and is co-founder of BettingUSA.com. As a former professional online poker player, Wes approaches his work from the viewpoint of players.