Bill
S 298
Massachusetts law would create a new regulatory framework for peer‑to‑peer cardrooms at licensed pari‑mutuel sites, allowing non‑banking poker and domino games under strict oversig
Note on document discrepancy
- The bill header provided (title: state income tax exemption for volunteer firefighters and ambulance workers) does not match the actual bill text included. The text of Senate Bill No. 298 creates a new Massachusetts chapter authorizing "peer‑to‑peer cardrooms" at licensed pari‑mutuel facilities. This summary covers the cardroom legislation as shown in the bill text.
Summary: "An Act to allow peer-to-peer cardrooms" (S.298 — 194th General Court, 2025–2026)
Purpose / Intent
- Authorizes regulated "peer‑to‑peer" cardrooms at licensed pari‑mutuel facilities (e.g., certain race track permitholders).
- Legislature’s stated goals: expand entertainment choices, promote tourism, and generate additional state and local revenue.
- Emphasizes that authorized games are pari‑mutuel (players play one another), not casino/banking games; and sets out strict regulation to preserve integrity and public confidence.
Key provisions and definitions
- New Chapter 128D added to Massachusetts General Laws establishing a regulatory framework for Class II, peer‑to‑peer cardrooms.
- Authorized games: non‑banking poker and dominoes (including tournaments), as approved by the Division of Racing.
- Prohibits "banking games" (where the house acts as a participant or bank).
- Defines terms: cardroom, cardroom operator (must be a licensed pari‑mutuel permitholder), cardroom management company, cardroom distributor, gross receipts, net proceeds, rake, tournament, etc.
Regulatory authority and oversight
- Division of Racing (Massachusetts Gaming Commission) administers the chapter, with rulemaking authority under chapter 30A.
- Division powers include issuing cardroom and employee licenses; recordkeeping and reporting requirements; fee and tax collection; investigations; audits; hearings and disciplinary actions (suspension/revocation); and subpoena power.
- Mandates internal controls for permitholders and establishes a "roaming division auditor" to monitor and verify cardroom cash flow and accounting daily.
Licensing and eligible operators
- Cardroom licenses are limited to certain pari‑mutuel permitholders: live horse race permitholders, and specified running horse or greyhound permitholders that conducted simulcast wagering as of Dec 31, 2020, provided they meet chapter and Division requirements.
- Cardroom operators must obtain a cardroom license from the Division in addition to existing pari‑mutuel permits.
Financial and operational matters
- Defines gross receipts, net proceeds, and "rake"; allows the Division to set related taxes, fees, and annual per‑table license fees by rule.
- Net proceeds calculation excludes certain items (e.g., officer/director compensation, interest on capital debt, real estate taxes, bad debts, overhead/depreciation not directly related).
- Permits tournaments and sets standards for recordkeeping and oversight.
Who is affected
- Directly: licensed pari‑mutuel permitholders (race tracks/simulcast sites) that qualify to add cardroom operations; cardroom employees; cardroom management companies and distributors.
- Indirectly: patrons/gamblers, local tourism and hospitality sectors, Massachusetts Gaming Commission/Division of Racing (regulatory workload), and state/local revenues (via new taxes/fees).
- Excludes traditional casino (banking) operations; focuses on peer‑to‑peer gaming.
Procedural status and timeline (as provided)
- Filed: Senate Docket No. 2239 (filed 1/17/2025). Bill introduced/read in Senate on 1/29/2025.
- Referred to Committee(s): Small Business & Entrepreneurship; Economic Development & Emerging Technologies; status entries also show referral to Budget & Revenue.
- Committee action: Reported with an amendment in the nature of a substitute (no written report noted); placed on Senate Legislative Calendar under General Orders (Calendar No. 21) on 3/04/2025.
- Hearings: hearings scheduled/updated for Nov 13, 2025 (per docket entries).
- Current status (per provided records): Referred to Budget and Revenue (note: committee history shows multiple referrals and committee reporting).
Potential impacts and open questions
- Expected to increase entertainment/tourism activity and generate additional revenue, but net fiscal impact depends on rules (tax rates, fees, allowable tables) and market uptake.
- Regulatory details (license fees, tax rates, hours of operation, table limits, responsible‑gaming requirements) are left to Division rulemaking and therefore remain unspecified in the text provided.
- Potential policy considerations include competition with existing casinos, problem gambling mitigation, local zoning/municipal impacts, and enforcement resource needs.
For further review
- Key items to watch in amendments/rules: definitions of eligible permitholders, table caps, per‑table/annual license fees, gross receipts tax rates, consumer protections, and municipal opt‑in/opt‑out provisions (if any).
Compiled from official sources — confirm details with the bill’s official record.
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