Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S298 Compare Versions

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

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 2239 FILED ON: 1/17/2025
3	3	SENATE . . . . . . . . . . . . . . No. 298
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Paul R. Feeney
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 to allow peer-to-peer cardrooms.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Paul R. FeeneyBristol and Norfolk 1 of 15
16	16	SENATE DOCKET, NO. 2239 FILED ON: 1/17/2025
17	17	SENATE . . . . . . . . . . . . . . No. 298
18	18	By Mr. Feeney, a petition (accompanied by bill, Senate, No. 298) of Paul R. Feeney for
19	19	legislation to provide additional entertainment choices for the residents and visitors of the
20	20	commonwealth, promote tourism, and provide additional revenues through the authorization of
21	21	the playing of certain games at facilities known as cardrooms which are to be located at licensed
22	22	pari-mutuel facilities. Economic Development and Emerging Technologies.
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Fourth General Court
26	26	(2025-2026)
27	27	_______________
28	28	An Act to allow peer-to-peer cardrooms.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 SECTION 1. The Massachusetts General Laws, as so appearing, are hereby amended by
32	32	2adding the following new chapter:-
33	33	3 CHAPTER 128D
34	34	4 Peer-to-Peer Cardrooms for Class II Gaming
35	35	5 Section 1. Intent
36	36	6 It is the intent of the Legislature to provide additional entertainment choices for the
37	37	7residents of and visitors to the commonwealth, promote tourism, and provide additional revenues
38	38	8through the authorization of the playing of certain games at facilities known as cardrooms which
39	39	9are to be located at licensed pari-mutuel facilities. To ensure the public confidence in the
40	40	10integrity of authorized cardroom operations, this act is designed to strictly regulate the facilities, 2 of 15
41	41	11persons, and procedures related to cardroom operations. Furthermore, the Legislature finds that
42	42	12authorized games as herein defined are considered to be pari-mutuel style games and not casino
43	43	13gaming because the participants play against each other instead of against the house.
44	44	14 Section 2. Definition
45	45	15 As used in this section:
46	46	16 (a) “Authorized game” means a game or series of class II games of poker and dominoes
47	47	17approved by the Division which are played in a nonbanking manner.
48	48	18 (b) “Banking game” means a game in which the house is a participant in the game,
49	49	19taking on players, paying winners, and collecting from losers or in which the facility establishes
50	50	20a bank against which participants play.
51	51	21 (c) “Cardroom” means a facility where authorized games are played for money or
52	52	22anything of value and to which the public is invited to participate in such games and charged a
53	53	23fee for participation by the operator of such facility. Authorized games and cardrooms do not
54	54	24constitute casino gaming operations.
55	55	25 (d) “Cardroom management company” means any individual not an employee of the
56	56	26cardroom operator, any proprietorship, partnership, corporation, or other entity that enters into an
57	57	27agreement with a cardroom operator to manage, operate, or otherwise control the daily operation
58	58	28of a cardroom.
59	59	29 (e) “Cardroom distributor” means any business that distributes cardroom paraphernalia
60	60	30such as card tables, betting chips, chip holders, dominoes, dominoes tables, drop boxes, banking
61	61	31supplies, playing cards, card shufflers, and other associated equipment to authorized cardrooms. 3 of 15
62	62	32 (f) “Cardroom operator” means a licensed pari-mutuel permitholder which holds a valid
63	63	33permit and license issued by the Massachusetts Gaming Commission pursuant to chapter 128C
64	64	34and which also holds a valid cardroom license issued by said Commission’s Division of Racing
65	65	35pursuant to this section which authorizes such person to operate a cardroom and to conduct
66	66	36games in such cardroom.
67	67	37 (g) "Commission'', the Massachusetts gaming commission established in chapter 23K.
68	68	38 (h) “Division” means the Division of Racing of the Massachusetts Gaming Commission.
69	69	39 (i) “Dominoes” means a game of dominoes typically played with a set of 28 flat
70	70	40rectangular blocks, called “bones,” which are marked on one side and divided into two equal
71	71	41parts, with zero to six dots, called “pips,” in each part. The term also includes larger sets of
72	72	42blocks that contain a correspondingly higher number of pips. The term also means the set of
73	73	43blocks used to play the game.
74	74	44 (j) “Gross receipts” means the total amount of money received by a cardroom from any
75	75	45person for participation in authorized games.
76	76	46 (k) “House” means the cardroom operator and all employees of the cardroom operator.
77	77	47 (l) “Net proceeds” means the total amount of gross receipts received by a cardroom
78	78	48operator from cardroom operations less direct operating expenses related to cardroom operations,
79	79	49including labor costs, admission taxes only if a separate admission fee is charged for entry to the
80	80	50cardroom facility, gross receipts taxes imposed on cardroom operators by this section, the annual
81	81	51cardroom license fees imposed by this section on each table operated at a cardroom, and
82	82	52reasonable promotional costs excluding officer and director compensation, interest on capital 4 of 15
83	83	53debt, legal fees, real estate taxes, bad debts, contributions or donations, or overhead and
84	84	54depreciation expenses not directly related to the operation of the cardrooms.
85	85	55 (m) “Rake” means a set fee or percentage of the pot assessed by a cardroom operator for
86	86	56providing the services of a dealer, table, or location for playing the authorized game.
87	87	57 (n) “Tournament” means a series of games that have more than one betting round
88	88	58involving one or more tables and where the winners or others receive a prize or cash award.
89	89	59 Section 3. Authority
90	90	60 The Division of Racing of the Massachusetts Gaming Commission shall administer this
91	91	61chapter and regulate the operation of cardrooms and have the full authority to conduct
92	92	62adjudicatory proceedings and promulgate rules, regulations and conditions in accordance with
93	93	63chapter 30A, and is hereby authorized to:
94	94	64 (a) Adopt rules, including, but not limited to: the issuance of cardroom and employee
95	95	65licenses for cardroom operations; the operation of a cardroom; recordkeeping and reporting
96	96	66requirements; and the collection of all fees and taxes imposed by this section.
97	97	67 (b) Conduct investigations and monitor the operation of cardrooms and the playing of
98	98	68authorized games therein.
99	99	69 (c) Review the books, accounts, and records of any current or former cardroom
100	100	70operator.
101	101	71 (d) Suspend or revoke any license or permit, after hearing, for any violation of the
102	102	72provisions of this section or the administrative rules adopted pursuant thereto. 5 of 15
103	103	73 (e) Take testimony, issue summons and subpoenas for any witness, and issue subpoenas
104	104	74duces tecum in connection with any matter within its jurisdiction.
105	105	75 (f) Monitor and ensure the proper collection of taxes and fees imposed by this section.
106	106	76Permitholder internal controls are mandated to ensure no compromise of state funds. To that end,
107	107	77a roaming division auditor will monitor and verify the cash flow and accounting of cardroom
108	108	78revenue for any given operating day.
109	109	79 Section 3. License; Application; Fees
110	110	80 The division shall issue a license to operate a cardroom to: (i) any holder of a license to
111	111	81conduct a live horse racing meeting in accordance with chapter 128A; (ii) a running horse racing
112	112	82licensee that conducted simulcast wagering as of December 31, 2020 as authorized by law; or
113	113	83(iii) a greyhound meeting licensee that conducted simulcast wagering as of December 31, 2020
114	114	84as authorized by law; that meets the requirements of this chapter and the rules and regulations of
115	115	85the commission.
116	116	86 (a) Only those persons holding a valid cardroom license issued by the division may
117	117	87operate a cardroom. A cardroom license may only be operated at the same facility at which the
118	118	88licensee is authorized to conduct pari-mutuel wagering activities. An initial cardroom license
119	119	89shall be issued to a pari-mutuel permitholder only after its facilities are in place.
120	120	90 (b) After the initial cardroom license is granted, the application for the annual license
121	121	91renewal shall be made in conjunction with the applicant’s annual application for its pari-mutuel
122	122	92license. 6 of 15
123	123	93 (c) Persons seeking a license or a renewal thereof to operate a cardroom shall make
124	124	94application on forms prescribed by the division. Applications for cardroom licenses shall contain
125	125	95all of the information the division, by rule, may determine is required to ensure eligibility.
126	126	96 (d) The annual cardroom license fee for each facility shall be $1,000 for each table to
127	127	97be operated at the cardroom.
128	128	98 Section 4. Business and Employee Occupational License
129	129	99 (a) A person employed or otherwise working in a cardroom as a cardroom manager,
130	130	100floor supervisor, dealer, or any other activity related to cardroom operations while the facility is
131	131	101conducting card playing or games of dominoes must hold a valid cardroom employee
132	132	102occupational license issued by the division. Food service, maintenance, and security employees
133	133	103with a current pari-mutuel occupational license and a current background check will not be
134	134	104required to have a cardroom employee occupational license.
135	135	105 (b) Any cardroom management company or cardroom distributor associated with
136	136	106cardroom operations must hold a valid cardroom business occupational license issued by the
137	137	107division.
138	138	108 (c) No licensed cardroom operator may employ or allow a person to work in a
139	139	109cardroom in any activity related to cardroom operations unless such person holds a valid
140	140	110occupational license. No licensed cardroom operator may contract, or otherwise do business
141	141	111with, a business required to hold a valid cardroom business occupational license, unless the
142	142	112business holds such a valid license. 7 of 15
143	143	113 (d) The division shall establish, by rule, a schedule for the renewal of cardroom
144	144	114occupational licenses. Cardroom occupational licenses are not transferable.
145	145	115 (e) Persons seeking cardroom occupational licenses, or renewal thereof, shall make
146	146	116application on forms prescribed by the division. Applications for cardroom occupational licenses
147	147	117shall contain all of the information the division, by rule, may determine is required to ensure
148	148	118eligibility.
149	149	119 (f) The division shall adopt rules regarding cardroom occupational licenses.
150	150	120 (g) The division may deny, declare ineligible, or revoke any cardroom occupational
151	151	121license if the applicant or holder thereof has been found guilty in the past ten years of a felony or
152	152	122misdemeanor involving forgery, larceny, extortion, conspiracy to defraud, or filing false reports
153	153	123to a government agency, racing or gaming commission or authority.
154	154	124 (h) Fingerprints for all cardroom occupational license applications shall be taken in a
155	155	125manner approved by the division. The division may by rule require an annual record check of all
156	156	126renewal applications for a cardroom occupational license. The cost of processing fingerprints and
157	157	127conducting a record check shall be borne by the applicant.
158	158	128 (i) The cardroom employee occupational license fee shall not exceed $50 for any 12-
159	159	129month period. The cardroom business occupational license fee shall not exceed $250 for any 12-
160	160	130month period.
161	161	131 Section 5. Operation of Cardroom
162	162	132 (a) A cardroom may be operated only at the location specified on the cardroom license
163	163	133issued by the division, and such location may only be at the location which the pari-mutuel 8 of 15
164	164	134permitholder is authorized to conduct pari-mutuel wagering activities pursuant to such
165	165	135permitholder’s valid pari-mutuel permit or as otherwise authorized by law.
166	166	136 (b) Any cardroom operator may operate a cardroom at the pari-mutuel facility daily
167	167	137throughout the year, from 6:00 a.m. to 5:59 a.m.; provided, however, that the gaming
168	168	138establishment shall register its hours of operation with the commission.
169	169	139 (c) A cardroom operator must at all times employ and provide a nonplaying dealer for
170	170	140each table on which authorized card games which traditionally use a dealer are conducted at the
171	171	141cardroom. Such dealers may not have a participatory interest in any game other than the dealing
172	172	142of cards and may not have an interest in the outcome of the game. The providing of such dealers
173	173	143by a licensee does not constitute the conducting of a banking game by the cardroom operator.
174	174	144 (d) A cardroom operator may award giveaways, jackpots, and prizes to a player who
175	175	145holds certain combinations of cards specified by the cardroom operator, including a progressive
176	176	146jackpot in which a player makes an optional wager and a winning player is awarded a jackpot
177	177	147from funds that have accumulated from various poker games.
178	178	148 (e) Each cardroom operator shall conspicuously post upon the premises of the cardroom
179	179	149a notice which contains a copy of the cardroom license; a list of authorized games offered by the
180	180	150cardroom; the wagering limits imposed by the house, if any; any additional house rules regarding
181	181	151operation of the cardroom or the playing of any game; and all costs to players to participate,
182	182	152including any rake by the house. In addition, each cardroom operator shall post at each table a
183	183	153notice of the minimum and maximum bets authorized at such table and the fee for participation
184	184	154in the game conducted. 9 of 15
185	185	155 (f) The cardroom facility is subject to inspection by the division or any law
186	186	156enforcement agency during the licensee’s regular business hours.
187	187	157 (g) A cardroom operator may refuse entry to or refuse to allow any person who is
188	188	158objectionable, undesirable, or disruptive to play, but such refusal may not be on the basis of race,
189	189	159creed, color, religion, gender, sexual orientation, national origin, marital status, physical
190	190	160handicap, or age, except as provided in this section.
191	191	161 (h) Poker games played in a peer-to-peer player manner in which every player’s hand at
192	192	162the table competes with every other player’s hand at the table and must comply with the
193	193	163following restrictions:
194	194	164 1. Poker games to be played in a peer-to-peer player manner must have been identified
195	195	165in cardroom license applications approved by the division.
196	196	166 2. There may not be more than nine players, nor less than two players, and the
197	197	167nonplayer dealer at each table.
198	198	168 Section 6. Wagers; Limitations
199	199	169 (a) No wagering may be conducted using money or other negotiable currency. Games
200	200	170may only be played utilizing a wagering system whereby all players’ money is first converted by
201	201	171the house to tokens or chips which shall be used for wagering only at that specific cardroom.
202	202	172 (b) The cardroom operator may limit the amount wagered in any game or series of
203	203	173games.
204	204	174 (c) A tournament shall consist of a series of games. The entry fee for a tournament may
205	205	175be set by the cardroom operator. Tournaments may be played only with tournament chips that are 10 of 15
206	206	176provided to all participants in exchange for an entry fee and any subsequent re-buys. All players
207	207	177must receive an equal number of tournament chips for their entry fee. Tournament chips have no
208	208	178cash value and represent tournament points only. There is no limitation on the number of
209	209	179tournament chips that may be used for a bet except as otherwise determined by the cardroom
210	210	180operator. Tournament chips may never be redeemed for cash or for any other thing of value. The
211	211	181distribution of prizes and cash awards must be determined by the cardroom operator before entry
212	212	182fees are accepted. For purposes of tournament play only, the term “gross receipts” means the
213	213	183total amount received by the cardroom operator for all entry fees, player re-buys, and fees for
214	214	184participating in the tournament less the total amount paid to the winners or others as prizes.
215	215	185 Section 7. Bond Requirement
216	216	186 The holder of a cardroom license shall be financially and otherwise responsible for the
217	217	187operation of the cardroom and for the conduct of any manager, dealer, or other employee
218	218	188involved in the operation of the cardroom. Prior to the issuance of a cardroom license, each
219	219	189applicant for such license shall provide evidence of a surety bond in the amount of $50,000,
220	220	190payable to the commonwealth, furnished by a corporate surety authorized to do business in the
221	221	191state or evidence that the licensee’s pari-mutuel bond required by chapter 128C has been
222	222	192expanded to include the applicant’s cardroom operation. The bond shall guarantee that the
223	223	193cardroom operator will redeem, for cash, all tokens or chips used in games. Such bond shall be
224	224	194kept in full force and effect by the operator during the term of the license.
225	225	195 Section 8. Fees for and Prohibitions from Participation
226	226	196 (a) The cardroom operator may charge a fee for the right to participate in games
227	227	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
228	228	198a table or a rake subject to the posted maximum amount but may not be based on the amount
229	229	199won by players. The rake-off, if any, must be made in an obvious manner and placed in a
230	230	200designated rake area which is clearly visible to all players. Notice of the amount of the
231	231	201participation fee charged shall be posted in a conspicuous place in the cardroom and at each table
232	232	202at all times.
233	233	203 (b) A cardroom operator may not have any direct economic interest in a poker game
234	234	204played in a peer-to-peer player manner, except for the rake.
235	235	205 (c) A cardroom operator may not receive any portion of the winnings of a poker game
236	236	206played in a peer-to-peer player manner, except for the rake. Nothing herein prohibits a cardroom
237	237	207operator from collecting optional wagers made by players and a predetermined amount of the pot
238	238	208to be used for awarding progressive jackpots, provided that amount to be collected is posted in a
239	239	209conspicuous place at the table and the entire amount collected by the cardroom operator is
240	240	210awarded to jackpot winners.
241	241	211 Section 9. Records and Reports
242	242	212 (a) Each licensee operating a cardroom shall keep and maintain permanent daily
243	243	213records of its cardroom operation and shall maintain such records for a period of not less than
244	244	214three years. These records shall include all financial transactions and contain sufficient detail to
245	245	215determine compliance with the requirements of this section. All records shall be available for
246	246	216audit and inspection by the division or other law enforcement agencies during the licensee’s
247	247	217regular business hours. The information required in such records shall be determined by division
248	248	218rule. 12 of 15
249	249	219 (b) Each licensee operating a cardroom shall file with the division a report containing
250	250	220the required records of such cardroom operation. Such report shall be filed monthly by licensees.
251	251	221The required reports shall be submitted on forms prescribed by the division and shall be due at
252	252	222the same time as the monthly pari-mutuel reports are due to the division, and such reports shall
253	253	223contain any additional information deemed necessary by the division, and the reports shall be
254	254	224deemed public records once filed.
255	255	225 Section 10. Prohibited Activities
256	256	226 (a) No person licensed to operate a cardroom may conduct any banking game or any
257	257	227game not specifically authorized by this section or operate any game that are authorized by
258	258	228chapter 23K or operate any “compact game” as defined in the gaming compact ratified and
259	259	229approved by the Commonwealth on March 19, 2013.
260	260	230 (b) No person under 18 years of age may be permitted to hold a cardroom or employee
261	261	231license, or engage in any game conducted therein.
262	262	232 (c) No electronic or mechanical devices, except mechanical card shufflers, may be used
263	263	233to conduct any authorized game in a cardroom.
264	264	234 (d) No cards, game components, or game implements may be used in playing an
265	265	235authorized game unless such has been furnished or provided to the players by the cardroom
266	266	236operator.
267	267	237 Section 11. Taxes and Other Payments
268	268	238 (a) Each cardroom operator shall pay a tax to the commonwealth of ten (10) percent of
269	269	239the cardroom operation’s monthly gross receipts. 13 of 15
270	270	240 (b) An admission tax equal to 15 percent of the admission charge for entrance to the
271	271	241licensee’s cardroom facility is imposed on each person entering the cardroom. This admission
272	272	242tax shall apply only if a separate admission fee is charged for entry to the cardroom facility. The
273	273	243cardroom licensee shall be responsible for collecting the admission tax. An admission tax is
274	274	244imposed on any free passes or complimentary cards issued to guests by licensees in an amount
275	275	245equal to the tax imposed on the regular and usual admission charge for entrance to the licensee’s
276	276	246cardroom facility. A cardroom licensee may issue tax-free passes to its officers, officials, and
277	277	247employees or other persons actually engaged in working at the cardroom, including accredited
278	278	248press representatives such as reporters and editors, and may also issue tax-free passes to other
279	279	249cardroom licensees for the use of their officers and officials.
280	280	250 (c) Payment of the admission tax and gross receipts tax imposed by this section shall be
281	281	251deposited as follows: 80% into the Gaming Local Aid Fund established by section 63 of chapter
282	282	25223K; and, 20% into the Race Horse Development Fund established by section 60 of chapter 23K.
283	283	253 (d) Licensees shall file a report under oath by the fifth day of each calendar month for all
284	284	254taxes remitted during the preceding calendar month. Such report shall, under oath, indicate the
285	285	255total of all admissions, the cardroom activities for the preceding calendar month, and such other
286	286	256information as may be prescribed by the division.
287	287	257 (e) The failure of any licensee to make payments as prescribed in this section may be
288	288	258subjected by the division to a civil penalty of up to $1,000 for each day the tax payment is not
289	289	259remitted. If a licensee continues to fail to make payments as prescribed in this section for 30 days
290	290	260or more, the division may suspend or revoke the license of the cardroom operator or deny
291	291	261issuance of any further license to the cardroom operator. 14 of 15
292	292	262 (f) The cardroom shall be deemed an accessory use to a licensed pari-mutuel operation
293	293	263and, except as otherwise provided, a municipality, county, or political subdivision may not assess
294	294	264or collect any additional license tax, sales tax, or excise tax on such cardroom operation.
295	295	265 Section 12. Suspension, Revocation, or Denial of License; Fine
296	296	266 (a) The division may deny a license or the renewal thereof, or may suspend or revoke
297	297	267any license, when the applicant has: violated or failed to comply with the provisions of this
298	298	268section or any rules adopted pursuant thereto; knowingly caused, aided, abetted, or conspired
299	299	269with another to cause any person to violate this section or any rules adopted pursuant thereto; or
300	300	270obtained a license or permit by fraud, misrepresentation, or concealment; or if the holder of such
301	301	271license or permit is no longer eligible under this section.
302	302	272 (b) If a pari-mutuel permitholder’s pari-mutuel permit or license is suspended or
303	303	273revoked by the division pursuant to chapter 128C, the division may, but is not required to,
304	304	274suspend or revoke such permitholder’s cardroom license. If a cardroom operator’s license is
305	305	275suspended or revoked pursuant to this section, the division may, but is not required to, suspend
306	306	276or revoke such licensee’s pari-mutuel permit or license.
307	307	277 (c) Notwithstanding any other provision of this section, the division may impose an
308	308	278administrative fine not to exceed $1,000 for each violation against any person who has violated
309	309	279or failed to comply with the provisions of this section or any rules adopted pursuant thereto.
310	310	280 SECTION 2. Section 1 of chapter 271 of the General Laws, as so appearing, is hereby
311	311	281amended by inserting after “23N” the following words:- and 128D. 15 of 15
312	312	282 SECTION 3. Section 2 of chapter 271 of the General Laws, as so appearing, is hereby
313	313	283amended by inserting after “23N” the following words:- and 128D.
314	314	284 SECTION 4. Section 5 of chapter 271 of the General Laws, as so appearing, is hereby
315	315	285amended by inserting after “23N” the following words:- and 128D.
316	316	286 SECTION 5. Section 5A of chapter 271 of the General Laws, as so appearing, is hereby
317	317	287amended by inserting after “23N” in the last paragraph the following words:- or cardrooms
318	318	288operated pursuant to chapter 128D.
319	319	289 SECTION 6. Section 17 of chapter 271 of the General Laws, as so appearing, is hereby
320	320	290amended by inserting after “23N” the following words:- or cardrooms operated pursuant to
321	321	291chapter 128D.
322	322	292 SECTION 7. Section 20 of said chapter 271, as so appearing, is hereby amended by
323	323	293adding at the end thereof the following sentence:- Nothing in this section shall prohibit a gaming
324	324	294establishment licensed under chapter 128D from posting, advertising or displaying materials
325	325	295relevant to its gaming operations.
326	326	296 SECTION 8. Section 23 of said chapter 271, as so appearing, is hereby amended by
327	327	297inserting after the word “for”, in line 28, the following words:-; provided, however, that such
328	328	298provisions shall not apply to gaming conducted pursuant to chapter 128D.