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Online Gambling Advocates Say DeLeos Gambling Legislation Makes Online Poker Illegal

Posted on April 7th, 2010

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Massachusetts House Speaker Robert DeLeo has introduced a bill allowing expanded gambling in the state and wants a vote on the proposal in two weeks, without holding a public hearing.

Gov. Deval Patrick was said to oppose the absence of a public hearing, and was quoted as saying, “I know people have thought about these issues before, but it’s a very important decision for the Commonwealth. There are people who have strong feelings on all sides of it and we should do our work here out in the open. We should have a hearing and let people make their case.”

DeLeo responded by saying that the new 172-page bill is a rewritten version of a previous measure that was already presented in a public hearing in October, therefore, no public hearing is necessary now. Another major issue that raised concern from online gambling supporters and online poker players in Massachusetts is wording on page 123 of the bill that makes Internet gambling and online poker punishable as a crime. The text states, “Any person who knowingly transmits or receives a wager of any type by any telecommunication device, including telephone, cellular phone, internet, [or] local area network… or knowingly installs or maintains said device or equipment for the transmission or receipt of wagering information shall be punished.”

The clause deems violators to be “any person who, from within the Commonwealth, transmits a wager to, or receives a wager from, another person or gaming establishment within or outside of the purportedly backing Commonwealth” with the exception of law enforcement authorities who are monitoring online gambling. Those who break the rule could face a jail term of one to two years and be slapped a fine of up to $25,000. The bill would allow two casinos and slot machines at the state’s four racetracks. Each casino license would be charged a fee of $100 million and $15 million for each racetrack license, and revenue from gambling would be used to support community colleges, schools, tourism and the state’s emergency fund.

The state’s police force, tasked to control and supervise the activity, would also be intensified. The bill would require a 25 percent tax on casino revenue and 40 percent on slot machines at racetracks. Gov. Patrick has always been partial to casinos and opposed to slot machines at racetracks, arguing that slots do not create as many jobs as casinos because casinos have more facilities and services. DeLeo’s concern is that the tracks will shut down if they are not allowed slot machines.

On poker forums, some tried to guess reasons for the bill’s attempt to make online poker illegal in the same manner as in the state of Washington, and one participant surmised, “The brick and mortar casinos of Massachusetts want to cut down on competition with online gambling. That’s why you see it as an add-on to casino bills: the same people who advocate for casinos are against online gambling.”