AN INITIATIVE PETITION FOR A LAW:An Act Relative to Establishing Regulated and Taxed Internet Poker inMassachusetts

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 provisionof services related to such activity on the Internet or any similar communication mediumby any person within the borders of Massachusetts shall be deemed lawful and not aviolation of any law of the Commonwealth of Massachusetts provided that the player isover the age of 21, that the operator of the poker websites be licensed and regulatedand the player uses a financial services provider for the purpose of transferring moneyfor 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 compliancewith the provisions of this chapter, and shall be responsible for registration of financialservices providers for internet poker transactions licensing of poker operators, and therecognition 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 bythe Federal Government as a credit card issuer, financial institution, operator of aterminal at which an electronic fund transfer may be initiated, money transmittingbusiness, or international, national, regional, or local payment network utilized to effecta credit transaction, electronic fund transfer, stored value product transaction, or moneytransmitting service.(2) Certification by the financial services provider that it has procedures in place toprovide 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 identifiedas 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 Federaltax purposes shall occur.

(c) The operators of the poker sites must obtain or already possess a license issued bythe commission or by a regulatory commission in another jurisdiction that has standardsgoverning licensing probity, honesty and integrity of the games, security and internalaccounting controls and dispute resolution.(d) Any financial services provider issued a license pursuant to this act shall makepayment to the Commonwealth of Massachusetts of 5% of deposits into poker accountsmade 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 herebyamended by inserting after Section 2(d)(3) the following new provision designated2(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 24Bof Chapter 10 of the Massachusetts General Laws and where payments are madethrough financial service providers regulated pursuant to Section 24B of Chapter 10 of the Massachusetts General Laws; provided, however, that such deduction may notexceed the amount of all cumulative income recognized as a result of participation inand playing the game of poker on such regulated poker sites and where payments aremade 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 courtof 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 itwould be valid to the maximum extent permitted.SECTION 4. The effective date of this act is January 1, 2011.Wethe undersigned state under the pains and penalties of perjury that wehavepersonally read the final text of this proposed statute titled An Act relative toEstablishing Regulated and Taxed Internet Poker in Massachusetts, fully subscribe toits contents, have initialed the preceding page(s) to signify our assent to each page, arequalified voters of the Commonwealth at the addresses printed below our names, andfreely and voluntarily agree to be one of its original signers as required by AmendmentArticle 48 of the Constitution of the Commonwealth of Massachusetts.Name:Address: