Federal Gambling Bill Riles Massachusetts Treasurer

Calling it an “unwarranted and unjustified usurpation of authority [that] will be harmful to the interests of the people of Massachusetts,” state Treasurer Steven Grossman wrote U.S. Senators Harry Reid, D-Nevada, and Jon Kyl, R-Ariz., to oppose legislation that would limit states’ control of online gambling within their borders.

Grossman, chairman of the Massachusetts State Lottery Commission, said the bill, if passed, would imperil the lottery, which is the largest source of unrestricted aid to the state’s 351 cities and towns. Grossman also warned that the measure would compromise the competitiveness of the ongoing process to bid on casino licenses in Massachusetts.

The proposed legislation effectively limits gaming industry participation in the online gambling marketplace to operations with a presence in Nevada and severely limits the ability of state lotteries to sell their products online, Grossman said.

Earlier this year, Grossman convened an online products task force to study the effects of the potential introduction of online lottery sales in Massachusetts. The panel has reached no conclusion, but Grossman has stressed that protecting the interests of the 7,400 businesses that sell lottery products and the revenue that flows to cities and towns is paramount to the Task Force’s efforts. Federal restraints could have a significant impact on both, he said.

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