Summary of Bill S 298: An Act to Allow Peer-to-Peer Cardrooms

Overview

Bill S 298, introduced by Senator Paul R. Feeney on February 27, 2025, aims to authorize the establishment of peer-to-peer cardrooms in Massachusetts. The bill seeks to enhance entertainment options for residents and visitors, promote tourism, and generate additional revenue through regulated gaming activities at licensed pari-mutuel facilities.

Purpose and Intent

The primary intent of this legislation is to:
- Expand Entertainment Choices: Provide more recreational activities for the public.
- Promote Tourism: Attract visitors to Massachusetts through new gaming options.
- Increase Revenue: Generate additional state revenue from cardroom operations.

Key Provisions

The bill introduces a new chapter (Chapter 128D) to the Massachusetts General Laws, which includes several important provisions:

Definitions

• Authorized Game: Includes non-banking games like poker and dominoes where players compete against each other rather than against the house.
• Cardroom: A facility where authorized games are played for money, open to the public, and operated by a licensed entity.
• Cardroom Operator: A licensed pari-mutuel permitholder authorized to conduct cardroom operations.

Regulatory Authority

• The Division of Racing within the Massachusetts Gaming Commission will oversee the regulation of cardrooms, including:
  • Issuing licenses for cardroom operations and employees.
  • Setting operational rules and recordkeeping requirements.
  • Conducting investigations and monitoring compliance.

Licensing and Fees

• Only licensed pari-mutuel facilities that meet specific criteria can apply for a cardroom license.
• The bill outlines the process for license application, including fees and operational standards.

Financial Provisions

• Gross Receipts: Defined as the total money received from participants in authorized games.
• Net Proceeds: Calculated as gross receipts minus direct operating expenses, which will be subject to taxation.

Impact

The bill is expected to affect:
- Residents and Visitors: By providing new entertainment options.
- Licensed Pari-Mutuel Facilities: These establishments can diversify their offerings and potentially increase revenue.
- State Revenue: Through taxes and fees associated with cardroom operations.

Procedural Aspects

• A hearing for the bill has been rescheduled to November 13, 2025, from 11:00 AM to 2:00 PM.
• The bill has been referred to the Committee on Economic Development and Emerging Technologies for further consideration.

Conclusion

Bill S 298 represents a significant shift in the gaming landscape of Massachusetts, aiming to create a regulated environment for peer-to-peer cardrooms. By allowing these facilities to operate under strict guidelines, the bill seeks to balance entertainment, tourism, and revenue generation while ensuring public confidence in the integrity of gaming operations.