By Bob Katzen

The Revenue Committee held a hearing on a proposal that would create a new regulatory structure for and legalize peer-to-peer cardrooms in which people play against each rather than the house. The measure would allow licensed “pari-mutuel” facilities, like horse racing tracks, to operate cardrooms featuring poker and dominoes. The regulatory authority would be the Massachusetts Gaming Commission’s Division of Racing, which would oversee licensing, operations and taxation.

Players would use chips instead of cash, with games limited to between two and nine players and dealers must be non-participating.

The bill would impose a 10 percent tax on gross receipts and a 15 percent admission tax, if a separate entry fee is charged. Revenues would be split between the Gaming Local Aid Fund (80 percent) and the Racehorse Development Fund (20 percent).

The cardroom operator can charge a participation fee or “rake” but cannot have a direct economic interest in game outcomes. Cardroom operators must pay a license fee of $1000 per table. There are occupational licenses for employees and managers, and background checks and fingerprinting would be required.

“I elected to file this bill to start the conversation about the creation of peer-to-peer cardrooms in the commonwealth for games such as poker and dominoes, where players can play against each other instead of a casino,” said sponsor Rep. Adrian Madaro (D-East Boston). “We understand that this industry has the potential to create hundreds of jobs in the commonwealth, as well as to preserve declining jobs at Suffolk Downs, where East Boston residents continue to be employed. These facilities will also generate much-needed tax revenue at a time of increasing uncertainty over continued federal funding.”