Replacing Gas Tax Increase with Online Gaming

Messrs. Tarr, Hedlund, Knapik and Ross moved that the bill be amended by striking section 43 in its entirety; and

further by adding the following section:-

SECTION _. Chapter 23K of the General Laws, as appearing in the 2012 Official Edition, is hereby amended by inserting after section 20 the following section:-

Section 20A. (a) The commission may issue to any category 1 or category 2 licensee, subject to the provisions of this chapter and any rules or regulations established by the commission, a category 3 internet gambling license.

(b) The commission shall, subject to rules and regulations established by the commission and the pertinent laws governing applicants for a category 1 or 2 license, issue a request for applications for 1 or more category 3 internet gambling license if any category 1 or category 2 licensee shall choose not to seek a category 3 internet gambling license; provided, however, that the commission shall not issue greater than 4 category 3 licenses.

(c) The commission shall prescribe the form of the 4 category 3 gaming licenses, which shall include, but not be limited to, the following license conditions for each licensee, which shall be in addition to applicable requirements provided for by others sections of this chapter. The licensee shall:

(i) pay an initial license of not less than $300,000;

(ii) pay an annual renewal fee for not less than $150,000;

(iii) pay a daily tax of 20 per cent on gross gaming revenues; provided that said daily tax shall be remitted to the commission by a gaming licensee the day following each day of wagering;

(iv) not offer any online game in conflict with the Massachusetts lottery;

(v) limit the games offered, odds, and prizes to those that are offered in a category 1 or category 2 license;

(vi) require all persons be not less than 21 years to place wagers or collect winnings;

(vii) require all persons be physically located within the confines of Massachusetts to place wagers or collect winnings, unless said person is eligible to place wagers and collect winnings pursuant to a legislatively approved reciprocal state agreement provided for in section (d);

(viii) include on every internet screen a prominent display for persons to learn about gaming addiction, problem gaming, how to identify it, and resources to seek help.

(d) The commission may negotiate reciprocal internet gaming agreements with other state governments; provided, however, that no agreement shall be finalized unless approved by a majority of each branch of the general court.

(e) The commission shall deposit all fees and taxes collected pursuant to this section into the General Fund.