Massachusetts Sports Betting: New Bill Would Impose Strictest Limits In US

Massachusetts sports betting operators would face the toughest set of restrictions and regulations in the United States under a new bill. 

But the bill faces long odds of passage, partly due to a rift between its author and the president of the state senate. 

Meanwhile, sports betting handles in Massachusetts reached another record in December, according to figures released Tuesday by the Massachusetts Gaming Commission.

SD 1657 would ban in-play on sports betting apps and sites, more than double the state tax rate on gross gaming revenue, impose limits on players, and partly ban sports betting advertising.

The bill proposed by Sen. John F. Keenan is called: “An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting.”

It would

• Raise the tax rate operators to pay on their online sports betting revenue from 20% to 51%.
• Impose a $1,000 daily wagering limit on each account 
• Limit account holders to $10,000 per month of wagering without an affordability check,
• Affordability checks would limit further wagers to 15% of the amount in a player’s bank account.
• Ban sports betting ads during televised sporting events
• End sports book employee and executive compensation for percentages of wagers or deposits in the betting account
• Ban bonus offerings. 

All 6 New England states and the 5 states that border Massachusetts offer online sports betting. Among those states, New Hampshire (which has a monopoly with DraftKings), Rhode Island (which runs its sports betting through the state lottery) and New York tax revenues at 51%. 

The bill is in line with several of the parts of the SAFE Bet Act. That was introduced in the Senate at the tail end of the 118th Congress. It would have been the first piece of federal legislation to govern sports betting since the 2018 Supreme Court PASPA decision that allowed legalized sports betting nationwide. 

Rift With State Senate President Could Doom Bill

Last year, Keenan authored a bill that would have raised the tax rate that online sports betting sites pay on their gross gaming revenues. But that bill was defeated by unanimous consent during the final day of the legislative session without ever making it to the floor for a final vote. 

Keenan voted “present” to reinstate Senate President Karen Spilka. Keenan criticized Spilka’s leadership style, telling the Boston Herald he opposed her leadership before adding, “We have to be more open, participatory, more inclusive going forward, and I think we have to respect the right of our constituents to know where we are on issues.”

This matters here. Keenan’s rift with Spilka could spell doom for any piece of legislation authored by Keenan given Spilka’s power over which bills reach the floor and which bills don’t.

Sports Betting Revenue, Handles Continue To Soar

Sports betting revenues in Massachusetts have long surpassed expectations. 

Since retail sports betting began on January 31, 2023, and online betting went live on March 10, 2023, the Commonwealth has collected approximately $213.59 million in total taxes and assessments from the sports wagering operators. Initially, the books were expected to generate between $60-75 million per year.

In November, the retail and online books combined generated a record handle of more than $777.8 million. And pay the state more than $16 million in taxes.

Overall, 6 different operators have been fined a total of $177,500 by the MGC for 8 other issues of noncompliance. The largest fine levied was $40,000 imposed on the then-Wynn retail sports book at Encore Boston Harbor for accepting wagers on two events involving a collegiate team based in Massachusetts not competing in a tournament. 

Penn Sports Interactive was fined $25,000 for the infamous Barstool Sports "Can't Lose Parlay" promo that appeared on online launch day in 2023.