SGLA Opposes Massachusetts Bill That Would Ban Online Social Games and Threaten MA Businesses with Criminal Liability

A new bill introduced in Massachusetts, House Bill 4431, proposes a sweeping ban on online social games that utilize sweepstakes promotions. If enacted, the bill would deny Bay Staters access to the safe, free-to-play games they enjoy while exposing a wide range of legitimate businesses to unprecedented criminal liability.
Picture of kelcey

kelcey

WASHINGTON, DC – A new bill introduced in Massachusetts, House Bill 4431, proposes a sweeping ban on online social games that utilize sweepstakes promotions. If enacted, the bill would deny Bay Staters access to the safe, free-to-play games they enjoy while exposing a wide range of legitimate businesses to unprecedented criminal liability.

The legislation broadly targets any online game or promotion that awards prizes based on chance and uses virtual currency, including games that simulate slot machines, poker, table games, lotteries, and sports wagering. The bill would make it unlawful not only to operate these games, but also to support, assist, or facilitate their operation in any way. This means businesses including payment processors, marketing companies,  internet service providers and technology platforms, which serve diverse business models, would be forced to police client’s promotional activities in real-time or risk being criminalized.

In addition to proposing to ban access to the safe, free games that only adults can play and that Massachusetts residents have enjoyed for more than a decade, this sweeping language raises several red flags for businesses in the Bay State:

  • Impractical Compliance Expectations. By making it unlawful to “support or assist” online sweepstakes games, routine service providers could face legal exposure for standard business activities.
  • Unfair Criminal Liability. Businesses could face severe penalties even if they had no knowledge of or control over a client’s activities.
  • Lack of Clear Standards. The bill fails to define key terms, offer safe harbor provisions, or establish reasonable compliance expectations, leaving businesses vulnerable to arbitrary enforcement.

“Massachusetts has long been a hub of innovation, technology, and economic leadership, but this proposal sends the wrong message,” said Jeff Duncan, Executive Director of SGLA and former Congressman. “Voters do not want bans. They want smart rules that protect consumers, preserve choice, and strengthen the economy. A blanket prohibition on social games would strip away lawful entertainment, criminalize legitimate businesses, and undermine an industry that, if rules are modernized to regulate and tax the industry, could add to the state’s annual revenue.”

Recent polling underscores this sentiment. Eighty-four percent of Americans agree we should modernize our laws to regulate and tax online social games, not ban them.

Social gaming is not just entertainment, it is a $14 billion industry that supports jobs, fosters innovation, and generates economic opportunity across the United States.

SGLA remains committed to working with Massachusetts lawmakers, regulators, and stakeholders to develop a smart, modern regulatory framework that reflects voter sentiment, safeguards players, and supports innovation without resorting to blanket bans that hurt consumers and the state’s economy.

To learn more about SGLA, please visit our website at www.SGLeadership.org and our social channels at LinkedIn, X, Facebook and BlueSky.  

Contact:  
Laurie Rossbach 
Partner, Seven Letter  
202.258.7810 
Laurie@SevenLetter.com 

About the Social Gaming Leadership Alliance  

The Social Gaming Leadership Alliance (SGLA) champions social gaming operators who offer innovative, free-to-play entertainment experiences enjoyed by millions of Americans while promoting responsible digital entertainment. Our partners set the standard for innovation, world class games and the responsible use of digital marketing including sweepstakes promotions. We advocate for appropriate oversight that recognizes the unique entertainment value of social online games, protects players, platforms and the community, and promotes responsible gameplay.   

The SGLA’s operator partners are VGW, PLAYSTUDIOS, Yellow Social Interactive, ARB Interactive and B-Two Operations, representing Chumba Casino, Luckyland Slots, Global Poker, Pulsz, Pulsz Bingo, Modo Casino, McLuck, HelloMillions and SpinBlitz. Other partners include major payments provider Nuvei. The SGLA’s advocacy and standards focus exclusively on online social games. Our advocacy does not extend to operators offering sports products or transacting in cryptocurrency.