Massachusetts Proposes Major Reforms in Sports Betting with New Bill

Massachusetts Senator John Keenan has introduced a significant bill that proposes major changes to the state’s sports betting laws. The bill, titled ‘An Act Addressing Economic, Health and Social Harms Caused by Sports Betting,’ seeks to impose stricter regulations on operators and bettors alike.

The proposal, unveiled on January 17, 2025, includes provisions that would eliminate in-play betting, introduce affordability checks for bettors, and increase tax rates on betting revenues to over 50%, among other changes. The bill mirrors language from the federal SAFE Bet Act, which was filed last fall.

Key Provisions of the New Bill

Keenan’s proposed bill would make sweeping changes to Massachusetts’ sports betting landscape, including eliminating live or in-play wagering. Under current laws, Massachusetts allows bettors to place in-play bets, but with restrictions on certain types of wagers like prop bets.

Keenan’s bill goes further, completely banning these types of bets, which have gained significant popularity in other states. This move follows a trend seen in other states, including Ohio and Louisiana, where similar bans on prop bets for college athletes have been lobbied for by NCAA President Charlie Baker, a former Massachusetts governor.

In addition to banning certain bet types, the proposal introduces affordability checks, a concept that has gained attention internationally. Bettors would face daily and monthly wager limits of $1,000 and $10,000, respectively, unless they an affordability assessment.

According to the bill’s text, a bettor’s wagers cannot exceed more than 15% of their available bank balance during these checks. These measures make Massachusetts the first state to propose mandatory affordability checks in the U.S. should the bill .

Doubling the Betting Tax Rate

Perhaps the most striking aspect of Keenan’s proposal is the proposed increase in the state’s tax rate on digital sports betting.

The bill suggests raising the current tax rate of 20% on mobile sports betting to a staggering 51%, which would make Massachusetts’ tax rate the highest in the nation, matching that of New York. This marks Keenan’s second attempt to push through such an increase, after a similar proposal was rejected in 2024.

While Massachusetts currently taxes retail sports betting at 15%, the revised tax structure in this bill could significantly impact operators’ profitability.

This proposed hike comes at a time when Massachusetts is already seeing impressive revenue figures from its sports betting market, generating $118.7 million in sports betting tax revenue in the first 11 months of 2024. Since the launch of digital sports betting on January 31, 2023, the state has accumulated $212.6 million in tax revenue from the sector.

Changes to Advertising and Promotions

Another key feature of the bill is its provision on advertising and operator promotions. Keenan’s bill would ban advertising for sports betting during televised sporting events, a measure that the Massachusetts Gaming Commission had considered previously but deemed too difficult to enforce, particularly for nationally broadcast events.

Additionally, the bill seeks to ban certain operator marketing practices, including VIP compensation based on customer deposits or wagers. These practices, often criticized for encouraging gambling addiction, would be prohibited under the new legislation.

The bill would also introduce restrictions on various promotions, including same-game parlays (SGPs), odds boosts, and reload bonuses, labeling these as “unfair and deceptive practices.” These betting options are often a major source of revenue for sportsbooks, sometimes generating more than 50% of monthly revenue from parlays alone.

Increased Funding for Problem Gambling Initiatives

To address concerns about gambling addiction, the bill proposes doubling the amount that operators must contribute to problem and responsible gambling initiatives. The current annual contribution requirement is $1 million, but the bill would raise it to $2 million.

These funds would be allocated toward programs aimed at minimizing gambling-related harm, such as addiction and mental health issues, as well as ing research on addiction prevention.

Mandatory Data Collection for Research and Oversight

Another important provision in the bill is the requirement for operators to collect and submit anonymized customer data. This data, which would include betting behaviors, player demographics, and wager types, would be shared with a nonprofit research entity.

This entity would use the data to develop strategies for harm reduction and to enhance the understanding of gambling addiction. The Massachusetts Gaming Commission would work alongside the nonprofit to analyze the data and create evidence-based approaches to combat problem gambling.

Source:

“New Massachusetts bill: No in-play betting, massive tax hike, affordability checks” , igamingbusiness.com, January 20, 2025