Massachusetts 2025-2026 Regular Session

Massachusetts House Bill H3177 Compare Versions

Only one version of the bill is available at this time.

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1	1	1 of 1
2	2	HOUSE DOCKET, NO. 3258 FILED ON: 1/16/2025
3	3	HOUSE . . . . . . . . . . . . . . . No. 3177
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Adrian C. Madaro
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act allowing peer-to-peer cardrooms.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Adrian C. Madaro1st Suffolk1/16/2025 1 of 15
16	16	HOUSE DOCKET, NO. 3258 FILED ON: 1/16/2025
17	17	HOUSE . . . . . . . . . . . . . . . No. 3177
18	18	By Representative Madaro of Boston, a petition (accompanied by bill, House, No. 3177) of
19	19	Adrian C. Madaro relative to authorizing and taxing of cardrooms, so-called. Revenue.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Fourth General Court
23	23	(2025-2026)
24	24	_______________
25	25	An Act allowing peer-to-peer cardrooms.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1. The General Laws, as appearing in the 2022 Official Edition, are hereby
29	29	2amended by adding the following new chapter:-
30	30	3 CHAPTER 128D
31	31	4 Peer-to-Peer Cardrooms for Class II Gaming
32	32	5 Section 1. Intent
33	33	6 It is the intent of the Legislature to provide additional entertainment choices for the
34	34	7residents of and visitors to the commonwealth, promote tourism, and provide additional revenues
35	35	8through the authorization of the playing of certain games at facilities known as cardrooms which
36	36	9are to be located at licensed pari-mutuel facilities. To ensure the public confidence in the
37	37	10integrity of authorized cardroom operations, this act is designed to strictly regulate the facilities,
38	38	11persons, and procedures related to cardroom operations. Furthermore, the Legislature finds that 2 of 15
39	39	12authorized games as herein defined are considered to be pari-mutuel style games and not casino
40	40	13gaming because the participants play against each other instead of against the house.
41	41	14 Section 2. Definition
42	42	15 As used in this section:
43	43	16 (a) “Authorized game” means a game or series of class II games of poker and dominoes
44	44	17approved by the Division which are played in a nonbanking manner.
45	45	18 (b) “Banking game” means a game in which the house is a participant in the game,
46	46	19taking on players, paying winners, and collecting from losers or in which the facility establishes
47	47	20a bank against which participants play.
48	48	21 (c) “Cardroom” means a facility where authorized games are played for money or
49	49	22anything of value and to which the public is invited to participate in such games and charged a
50	50	23fee for participation by the operator of such facility. Authorized games and cardrooms do not
51	51	24constitute casino gaming operations.
52	52	25 (d) “Cardroom management company” means any individual not an employee of the
53	53	26cardroom operator, any proprietorship, partnership, corporation, or other entity that enters into an
54	54	27agreement with a cardroom operator to manage, operate, or otherwise control the daily operation
55	55	28of a cardroom.
56	56	29 (e) “Cardroom distributor” means any business that distributes cardroom paraphernalia
57	57	30such as card tables, betting chips, chip holders, dominoes, dominoes tables, drop boxes, banking
58	58	31supplies, playing cards, card shufflers, and other associated equipment to authorized cardrooms. 3 of 15
59	59	32 (f) “Cardroom operator” means a licensed pari-mutuel permitholder which holds a valid
60	60	33permit and license issued by the Massachusetts Gaming Commission pursuant to chapter 128C
61	61	34and which also holds a valid cardroom license issued by said Commission’s Division of Racing
62	62	35pursuant to this section which authorizes such person to operate a cardroom and to conduct
63	63	36games in such cardroom.
64	64	37 (g) "Commission'', the Massachusetts gaming commission established in chapter 23K.
65	65	38 (h) “Division” means the Division of Racing of the Massachusetts Gaming Commission.
66	66	39 (i) “Dominoes” means a game of dominoes typically played with a set of 28 flat
67	67	40rectangular blocks, called “bones,” which are marked on one side and divided into two equal
68	68	41parts, with zero to six dots, called “pips,” in each part. The term also includes larger sets of
69	69	42blocks that contain a correspondingly higher number of pips. The term also means the set of
70	70	43blocks used to play the game.
71	71	44 (j) “Gross receipts” means the total amount of money received by a cardroom from any
72	72	45person for participation in authorized games.
73	73	46 (k) “House” means the cardroom operator and all employees of the cardroom operator.
74	74	47 (l) “Net proceeds” means the total amount of gross receipts received by a cardroom
75	75	48operator from cardroom operations less direct operating expenses related to cardroom operations,
76	76	49including labor costs, admission taxes only if a separate admission fee is charged for entry to the
77	77	50cardroom facility, gross receipts taxes imposed on cardroom operators by this section, the annual
78	78	51cardroom license fees imposed by this section on each table operated at a cardroom, and
79	79	52reasonable promotional costs excluding officer and director compensation, interest on capital 4 of 15
80	80	53debt, legal fees, real estate taxes, bad debts, contributions or donations, or overhead and
81	81	54depreciation expenses not directly related to the operation of the cardrooms.
82	82	55 (m) “Rake” means a set fee or percentage of the pot assessed by a cardroom operator for
83	83	56providing the services of a dealer, table, or location for playing the authorized game.
84	84	57 (n) “Tournament” means a series of games that have more than one betting round
85	85	58involving one or more tables and where the winners or others receive a prize or cash award.
86	86	59 Section 3. Authority
87	87	60 The Division of Racing of the Massachusetts Gaming Commission shall administer this
88	88	61chapter and regulate the operation of cardrooms and have the full authority to conduct
89	89	62adjudicatory proceedings and promulgate rules, regulations and conditions in accordance with
90	90	63chapter 30A, and is hereby authorized to:
91	91	64 (a) Adopt rules, including, but not limited to: the issuance of cardroom and employee
92	92	65licenses for cardroom operations; the operation of a cardroom; recordkeeping and reporting
93	93	66requirements; and the collection of all fees and taxes imposed by this section.
94	94	67 (b) Conduct investigations and monitor the operation of cardrooms and the playing of
95	95	68authorized games therein.
96	96	69 (c) Review the books, accounts, and records of any current or former cardroom
97	97	70operator.
98	98	71 (d) Suspend or revoke any license or permit, after hearing, for any violation of the
99	99	72provisions of this section or the administrative rules adopted pursuant thereto. 5 of 15
100	100	73 (e) Take testimony, issue summons and subpoenas for any witness, and issue subpoenas
101	101	74duces tecum in connection with any matter within its jurisdiction.
102	102	75 (f) Monitor and ensure the proper collection of taxes and fees imposed by this section.
103	103	76Permitholder internal controls are mandated to ensure no compromise of state funds. To that end,
104	104	77a roaming division auditor will monitor and verify the cash flow and accounting of cardroom
105	105	78revenue for any given operating day.
106	106	79 Section 3. License; Application; Fees
107	107	80 The division shall issue a license to operate a cardroom to: (i) any holder of a license to
108	108	81conduct a live horse racing meeting in accordance with chapter 128A; (ii) a running horse racing
109	109	82licensee that conducted simulcast wagering as of December 31, 2020 as authorized by law; or
110	110	83(iii) a greyhound meeting licensee that conducted simulcast wagering as of December 31, 2020
111	111	84as authorized by law; that meets the requirements of this chapter and the rules and regulations of
112	112	85the commission.
113	113	86 (a) Only those persons holding a valid cardroom license issued by the division may
114	114	87operate a cardroom. A cardroom license may only be operated at the same facility at which the
115	115	88licensee is authorized to conduct pari-mutuel wagering activities. An initial cardroom license
116	116	89shall be issued to a pari-mutuel permitholder only after its facilities are in place.
117	117	90 (b) After the initial cardroom license is granted, the application for the annual license
118	118	91renewal shall be made in conjunction with the applicant’s annual application for its pari-mutuel
119	119	92license. 6 of 15
120	120	93 (c) Persons seeking a license or a renewal thereof to operate a cardroom shall make
121	121	94application on forms prescribed by the division. Applications for cardroom licenses shall contain
122	122	95all of the information the division, by rule, may determine is required to ensure eligibility.
123	123	96 (d) The annual cardroom license fee for each facility shall be $1,000 for each table to
124	124	97be operated at the cardroom.
125	125	98 Section 4. Business and Employee Occupational License
126	126	99 (a) A person employed or otherwise working in a cardroom as a cardroom manager,
127	127	100floor supervisor, dealer, or any other activity related to cardroom operations while the facility is
128	128	101conducting card playing or games of dominoes must hold a valid cardroom employee
129	129	102occupational license issued by the division. Food service, maintenance, and security employees
130	130	103with a current pari-mutuel occupational license and a current background check will not be
131	131	104required to have a cardroom employee occupational license.
132	132	105 (b) Any cardroom management company or cardroom distributor associated with
133	133	106cardroom operations must hold a valid cardroom business occupational license issued by the
134	134	107division.
135	135	108 (c) No licensed cardroom operator may employ or allow a person to work in a
136	136	109cardroom in any activity related to cardroom operations unless such person holds a valid
137	137	110occupational license. No licensed cardroom operator may contract, or otherwise do business
138	138	111with, a business required to hold a valid cardroom business occupational license, unless the
139	139	112business holds such a valid license. 7 of 15
140	140	113 (d) The division shall establish, by rule, a schedule for the renewal of cardroom
141	141	114occupational licenses. Cardroom occupational licenses are not transferable.
142	142	115 (e) Persons seeking cardroom occupational licenses, or renewal thereof, shall make
143	143	116application on forms prescribed by the division. Applications for cardroom occupational licenses
144	144	117shall contain all of the information the division, by rule, may determine is required to ensure
145	145	118eligibility.
146	146	119 (f) The division shall adopt rules regarding cardroom occupational licenses.
147	147	120 (g) The division may deny, declare ineligible, or revoke any cardroom occupational
148	148	121license if the applicant or holder thereof has been found guilty in the past ten years of a felony or
149	149	122misdemeanor involving forgery, larceny, extortion, conspiracy to defraud, or filing false reports
150	150	123to a government agency, racing or gaming commission or authority.
151	151	124 (h) Fingerprints for all cardroom occupational license applications shall be taken in a
152	152	125manner approved by the division. The division may by rule require an annual record check of all
153	153	126renewal applications for a cardroom occupational license. The cost of processing fingerprints and
154	154	127conducting a record check shall be borne by the applicant.
155	155	128 (i) The cardroom employee occupational license fee shall not exceed $50 for any 12-
156	156	129month period. The cardroom business occupational license fee shall not exceed $250 for any 12-
157	157	130month period.
158	158	131 Section 5. Operation of Cardroom
159	159	132 (a) A cardroom may be operated only at the location specified on the cardroom license
160	160	133issued by the division, and such location may only be at the location which the pari-mutuel 8 of 15
161	161	134permitholder is authorized to conduct pari-mutuel wagering activities pursuant to such
162	162	135permitholder’s valid pari-mutuel permit or as otherwise authorized by law.
163	163	136 (b) Any cardroom operator may operate a cardroom at the pari-mutuel facility daily
164	164	137throughout the year, from 6:00 a.m. to 5:59 a.m.; provided, however, that the gaming
165	165	138establishment shall register its hours of operation with the commission.
166	166	139 (c) A cardroom operator must at all times employ and provide a nonplaying dealer for
167	167	140each table on which authorized card games which traditionally use a dealer are conducted at the
168	168	141cardroom. Such dealers may not have a participatory interest in any game other than the dealing
169	169	142of cards and may not have an interest in the outcome of the game. The providing of such dealers
170	170	143by a licensee does not constitute the conducting of a banking game by the cardroom operator.
171	171	144 (d) A cardroom operator may award giveaways, jackpots, and prizes to a player who
172	172	145holds certain combinations of cards specified by the cardroom operator, including a progressive
173	173	146jackpot in which a player makes an optional wager and a winning player is awarded a jackpot
174	174	147from funds that have accumulated from various poker games.
175	175	148 (e) Each cardroom operator shall conspicuously post upon the premises of the cardroom
176	176	149a notice which contains a copy of the cardroom license; a list of authorized games offered by the
177	177	150cardroom; the wagering limits imposed by the house, if any; any additional house rules regarding
178	178	151operation of the cardroom or the playing of any game; and all costs to players to participate,
179	179	152including any rake by the house. In addition, each cardroom operator shall post at each table a
180	180	153notice of the minimum and maximum bets authorized at such table and the fee for participation
181	181	154in the game conducted. 9 of 15
182	182	155 (f) The cardroom facility is subject to inspection by the division or any law
183	183	156enforcement agency during the licensee’s regular business hours.
184	184	157 (g) A cardroom operator may refuse entry to or refuse to allow any person who is
185	185	158objectionable, undesirable, or disruptive to play, but such refusal may not be on the basis of race,
186	186	159creed, color, religion, gender, sexual orientation, national origin, marital status, physical
187	187	160handicap, or age, except as provided in this section.
188	188	161 (h) Poker games played in a peer-to-peer player manner in which every player’s hand at
189	189	162the table competes with every other player’s hand at the table and must comply with the
190	190	163following restrictions:
191	191	164 1. Poker games to be played in a peer-to-peer player manner must have been identified
192	192	165in cardroom license applications approved by the division.
193	193	166 2. There may not be more than nine players, nor less than two players, and the
194	194	167nonplayer dealer at each table.
195	195	168 Section 6. Wagers; Limitations
196	196	169 (a) No wagering may be conducted using money or other negotiable currency. Games
197	197	170may only be played utilizing a wagering system whereby all players’ money is first converted by
198	198	171the house to tokens or chips which shall be used for wagering only at that specific cardroom.
199	199	172 (b) The cardroom operator may limit the amount wagered in any game or series of
200	200	173games.
201	201	174 (c) A tournament shall consist of a series of games. The entry fee for a tournament may
202	202	175be set by the cardroom operator. Tournaments may be played only with tournament chips that are 10 of 15
203	203	176provided to all participants in exchange for an entry fee and any subsequent re-buys. All players
204	204	177must receive an equal number of tournament chips for their entry fee. Tournament chips have no
205	205	178cash value and represent tournament points only. There is no limitation on the number of
206	206	179tournament chips that may be used for a bet except as otherwise determined by the cardroom
207	207	180operator. Tournament chips may never be redeemed for cash or for any other thing of value. The
208	208	181distribution of prizes and cash awards must be determined by the cardroom operator before entry
209	209	182fees are accepted. For purposes of tournament play only, the term “gross receipts” means the
210	210	183total amount received by the cardroom operator for all entry fees, player re-buys, and fees for
211	211	184participating in the tournament less the total amount paid to the winners or others as prizes.
212	212	185 Section 7. Bond Requirement
213	213	186 The holder of a cardroom license shall be financially and otherwise responsible for the
214	214	187operation of the cardroom and for the conduct of any manager, dealer, or other employee
215	215	188involved in the operation of the cardroom. Prior to the issuance of a cardroom license, each
216	216	189applicant for such license shall provide evidence of a surety bond in the amount of $50,000,
217	217	190payable to the commonwealth, furnished by a corporate surety authorized to do business in the
218	218	191state or evidence that the licensee’s pari-mutuel bond required by chapter 128C has been
219	219	192expanded to include the applicant’s cardroom operation. The bond shall guarantee that the
220	220	193cardroom operator will redeem, for cash, all tokens or chips used in games. Such bond shall be
221	221	194kept in full force and effect by the operator during the term of the license.
222	222	195 Section 8. Fees for and Prohibitions from Participation
223	223	196 (a) The cardroom operator may charge a fee for the right to participate in games
224	224	197conducted at the cardroom. Such fee may be either a flat fee or hourly rate for the use of a seat at 11 of 15
225	225	198a table or a rake subject to the posted maximum amount but may not be based on the amount
226	226	199won by players. The rake-off, if any, must be made in an obvious manner and placed in a
227	227	200designated rake area which is clearly visible to all players. Notice of the amount of the
228	228	201participation fee charged shall be posted in a conspicuous place in the cardroom and at each table
229	229	202at all times.
230	230	203 (b) A cardroom operator may not have any direct economic interest in a poker game
231	231	204played in a peer-to-peer player manner, except for the rake.
232	232	205 (c) A cardroom operator may not receive any portion of the winnings of a poker game
233	233	206played in a peer-to-peer player manner, except for the rake. Nothing herein prohibits a cardroom
234	234	207operator from collecting optional wagers made by players and a predetermined amount of the pot
235	235	208to be used for awarding progressive jackpots, provided that amount to be collected is posted in a
236	236	209conspicuous place at the table and the entire amount collected by the cardroom operator is
237	237	210awarded to jackpot winners.
238	238	211 Section 9. Records and Reports
239	239	212 (a) Each licensee operating a cardroom shall keep and maintain permanent daily
240	240	213records of its cardroom operation and shall maintain such records for a period of not less than
241	241	214three years. These records shall include all financial transactions and contain sufficient detail to
242	242	215determine compliance with the requirements of this section. All records shall be available for
243	243	216audit and inspection by the division or other law enforcement agencies during the licensee’s
244	244	217regular business hours. The information required in such records shall be determined by division
245	245	218rule. 12 of 15
246	246	219 (b) Each licensee operating a cardroom shall file with the division a report containing
247	247	220the required records of such cardroom operation. Such report shall be filed monthly by licensees.
248	248	221The required reports shall be submitted on forms prescribed by the division and shall be due at
249	249	222the same time as the monthly pari-mutuel reports are due to the division, and such reports shall
250	250	223contain any additional information deemed necessary by the division, and the reports shall be
251	251	224deemed public records once filed.
252	252	225 Section 10. Prohibited Activities
253	253	226 (a) No person licensed to operate a cardroom may conduct any banking game or any
254	254	227game not specifically authorized by this section or operate any game that are authorized by
255	255	228chapter 23K or operate any “compact game” as defined in the gaming compact ratified and
256	256	229approved by the Commonwealth on March 19, 2013.
257	257	230 (b) No person under 18 years of age may be permitted to hold a cardroom or employee
258	258	231license, or engage in any game conducted therein.
259	259	232 (c) No electronic or mechanical devices, except mechanical card shufflers, may be used
260	260	233to conduct any authorized game in a cardroom.
261	261	234 (d) No cards, game components, or game implements may be used in playing an
262	262	235authorized game unless such has been furnished or provided to the players by the cardroom
263	263	236operator.
264	264	237 Section 11. Taxes and Other Payments
265	265	238 (a) Each cardroom operator shall pay a tax to the commonwealth of ten (10) percent of
266	266	239the cardroom operation’s monthly gross receipts. 13 of 15
267	267	240 (b) An admission tax equal to 15 percent of the admission charge for entrance to the
268	268	241licensee’s cardroom facility is imposed on each person entering the cardroom. This admission
269	269	242tax shall apply only if a separate admission fee is charged for entry to the cardroom facility. The
270	270	243cardroom licensee shall be responsible for collecting the admission tax. An admission tax is
271	271	244imposed on any free passes or complimentary cards issued to guests by licensees in an amount
272	272	245equal to the tax imposed on the regular and usual admission charge for entrance to the licensee’s
273	273	246cardroom facility. A cardroom licensee may issue tax-free passes to its officers, officials, and
274	274	247employees or other persons actually engaged in working at the cardroom, including accredited
275	275	248press representatives such as reporters and editors, and may also issue tax-free passes to other
276	276	249cardroom licensees for the use of their officers and officials.
277	277	250 (c) Payment of the admission tax and gross receipts tax imposed by this section shall be
278	278	251deposited as follows: 80% into the Gaming Local Aid Fund established by section 63 of chapter
279	279	25223K; and, 20% into the Race Horse Development Fund established by section 60 of chapter 23K.
280	280	253 (d) Licensees shall file a report under oath by the fifth day of each calendar month for all
281	281	254taxes remitted during the preceding calendar month. Such report shall, under oath, indicate the
282	282	255total of all admissions, the cardroom activities for the preceding calendar month, and such other
283	283	256information as may be prescribed by the division.
284	284	257 (e) The failure of any licensee to make payments as prescribed in this section may be
285	285	258subjected by the division to a civil penalty of up to $1,000 for each day the tax payment is not
286	286	259remitted. If a licensee continues to fail to make payments as prescribed in this section for 30 days
287	287	260or more, the division may suspend or revoke the license of the cardroom operator or deny
288	288	261issuance of any further license to the cardroom operator. 14 of 15
289	289	262 (f) The cardroom shall be deemed an accessory use to a licensed pari-mutuel operation
290	290	263and, except as otherwise provided, a municipality, county, or political subdivision may not assess
291	291	264or collect any additional license tax, sales tax, or excise tax on such cardroom operation.
292	292	265 Section 12. Suspension, Revocation, or Denial of License; Fine
293	293	266 (a) The division may deny a license or the renewal thereof, or may suspend or revoke
294	294	267any license, when the applicant has: violated or failed to comply with the provisions of this
295	295	268section or any rules adopted pursuant thereto; knowingly caused, aided, abetted, or conspired
296	296	269with another to cause any person to violate this section or any rules adopted pursuant thereto; or
297	297	270obtained a license or permit by fraud, misrepresentation, or concealment; or if the holder of such
298	298	271license or permit is no longer eligible under this section.
299	299	272 (b) If a pari-mutuel permitholder’s pari-mutuel permit or license is suspended or
300	300	273revoked by the division pursuant to chapter 128C, the division may, but is not required to,
301	301	274suspend or revoke such permitholder’s cardroom license. If a cardroom operator’s license is
302	302	275suspended or revoked pursuant to this section, the division may, but is not required to, suspend
303	303	276or revoke such licensee’s pari-mutuel permit or license.
304	304	277 (c) Notwithstanding any other provision of this section, the division may impose an
305	305	278administrative fine not to exceed $1,000 for each violation against any person who has violated
306	306	279or failed to comply with the provisions of this section or any rules adopted pursuant thereto.
307	307	280 SECTION 2. Section 1 of chapter 271 of the General Laws, as so appearing, is hereby
308	308	281amended by inserting after “23N” the following words:- and 128D. 15 of 15
309	309	282 SECTION 3. Section 2 of chapter 271 of the General Laws, as so appearing, is hereby
310	310	283amended by inserting after “23N” the following words:- and 128D.
311	311	284 SECTION 4. Section 5 of chapter 271 of the General Laws, as so appearing, is hereby
312	312	285amended by inserting after “23N” the following words:- and 128D.
313	313	286 SECTION 5. Section 5A of chapter 271 of the General Laws, as so appearing, is hereby
314	314	287amended by inserting after “23N” in the last paragraph the following words:- or cardrooms
315	315	288operated pursuant to chapter 128D.
316	316	289 SECTION 6. Section 17 of chapter 271 of the General Laws, as so appearing, is hereby
317	317	290amended by inserting after “23N” the following words:- or cardrooms operated pursuant to
318	318	291chapter 128D.
319	319	292 SECTION 7. Section 20 of said chapter 271, as so appearing, is hereby amended by
320	320	293adding at the end thereof the following sentence:- Nothing in this section shall prohibit a gaming
321	321	294establishment licensed under chapter 128D from posting, advertising or displaying materials
322	322	295relevant to its gaming operations.
323	323	296 SECTION 8. Section 23 of said chapter 271, as so appearing, is hereby amended by
324	324	297inserting after the word “for”, in line 28, the following words:-; provided, however, that such
325	325	298provisions shall not apply to gaming conducted pursuant to chapter 128D.