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