AN INITIATIVE PETITION FOR A LAW:

An Act Relative to Establishing Regulated and Taxed Internet Poker in

Massachusetts
Be it enacted by the People, and by their authority, as follows:

SECTION 1: Chapter 10 of the General Laws is hereby amended by inserting after

Section 24A the following Section:-

Section 24B. (a) The participation in and playing of the game of poker, and the provision
of services related to such activity on the Internet or any similar communication medium
by any person within the borders of Massachusetts shall be deemed lawful and not a
violation of any law of the Commonwealth of Massachusetts provided that the player is
over the age of 21, that the operator of the poker websites be licensed and regulated
and the player uses a financial services provider for the purpose of transferring money
for the playing of the game that is approved by the commission as described in Section
(b).

(b) The commission shall be responsible for implementing and monitoring compliance
with the provisions of this chapter, and shall be responsible for registration of financial
services providers for internet poker transactions licensing of poker operators, and the
recognition of licenses of existing poker operators. The commission shall devise a set of
criteria for registration of financial services providers that will include the following:

(1) Having been licensed by the Commonwealth or a State or is subject to regulation by

the Federal Government as a credit card issuer, financial institution, operator of a
terminal at which an electronic fund transfer may be initiated, money transmitting
business, or international, national, regional, or local payment network utilized to effect
a credit transaction, electronic fund transfer, stored value product transaction, or money
transmitting service.

(2) Certification by the financial services provider that it has procedures in place to
provide reasonable assurances that

(i) All Massachusetts users of the service are 21 years of age or older,

(ii) Adequate methods exist to identify and offer treatment to individuals identified
as suffering from "gambling addiction,"

(iii) The funds of Massachusetts users of the service are at all times protected.

(iv) Methods exist to identify and report any activity that may be deemed money-
laundering or an otherwise unlawful use of the service, and

(v) Proper reporting of all transactions required for Massachusetts and Federal
tax purposes shall occur.
(c) The operators of the poker sites must obtain or already possess a license issued by
the commission or by a regulatory commission in another jurisdiction that has standards
governing licensing probity, honesty and integrity of the games, security and internal
accounting controls and dispute resolution.

(d) Any financial services provider issued a license pursuant to this act shall make
payment to the Commonwealth of Massachusetts of 5% of deposits into poker accounts
made by persons legally resident in Massachusetts at the time of the deposits.

SECTION 2. Section 2 of Chapter 62 of the Massachusetts General Laws is hereby

amended by inserting after Section 2(d)(3) the following new provision designated
2(d)(4):-

2(d)(4) A deduction for all cumulative losses recognized as a result of

participation in and playing the game of poker on the internet or any similar
communication medium on poker sites licensed and regulated pursuant to Section 24B
of Chapter 10 of the Massachusetts General Laws and where payments are made
through financial service providers regulated pursuant to Section 24B of Chapter 10 of
the Massachusetts General Laws; provided, however, that such deduction may not
exceed the amount of all cumulative income recognized as a result of participation in
and playing the game of poker on such regulated poker sites and where payments are
made through such regulated financial service providers.

SECTION 3. The provisions of this law are severable, and if any clause, sentence,
paragraph or section of this law or an application thereof shall be adjudged by any court
of competent jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder thereof but shall be confined in its operation to the clause,
sentence, paragraph, section or application adjudged invalid and such clause,
sentence, paragraph, section or application shall be reformed and construed so that it
would be valid to the maximum extent permitted.

SECTION 4. The effective date of this act is January 1, 2011.

We the undersigned state under the pains and penalties of perjury that we have
personally read the final text of this proposed statute titled An Act relative to
Establishing Regulated and Taxed Internet Poker in Massachusetts, fully subscribe to
its contents, have initialed the preceding page(s) to signify our assent to each page, are
qualified voters of the Commonwealth at the addresses printed below our names, and
freely and voluntarily agree to be one of its original signers as required by Amendment
Article 48 of the Constitution of the Commonwealth of Massachusetts.

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