Egaming bill filed in Massachusetts

Rush’s chief of staff John Regan said the move would provide the state lottery with new revenue streams that would boost local aid and added that the online program would be more secure than offshore online gaming operators that currently dominate online sales.

“Massachusetts has always been at the forefront of innovation in state lottery gaming and I believe that to continue to do so means adding robust online lottery gaming to the current offerings,” said John Regan, Chief of Staff to Rush. “This is more than just allowing the purchase of lottery tickets online – this is a new, interactive way of playing the lottery through new online games of chance.”

A hearing on the proposed legislation was held last week in front of the Joint Committee on Consumer Protection and Professional Licensure. State Treasurer Steve Grossman has however said he believes the sale of lottery tickets online alongside games of chance, which would involve the payment or collection of funds for online gaming through US banks by credit card, would violate the federal Unlawful Internet Gambling Enforcement Act. State lottery officials have disputed Grossman’s claims.

Rush's office says the right of state lotteries to conduct internet lottery gaming was granted in 2006 by the Unlawful Internet Gaming Enforcement Act, but Grossman says any payment or collection of funds for online gaming through U.S. banks by credit card actually violates the Act.

Rush's proposal would be similar to online lottery gaming programs like Canada, that use prepaid player accounts (not using credit cards). This is believed to allow for better monitoring, expanded age verification and prevention of problem gaming, said Regan.

Other politicians like Congressman Barney Frank have come out in support of selling online gaming tickets. If the pilot program were to be created, after one year of activity state lottery officials would report back to the Legislature on its success, and it would be evaluated at that time.

Five US states - New York, Minnesota, Virginia, Maryland and North Dakota - currently sell lottery tickets online. An attempt by lobby group the Poker Players Alliance to include an initiative on the Massachusetts 2010 ballot that would legalise internet poker within state borders was blocked in 2009 by state Attorney General Martha Coakley.