Recent MA Sports Betting Bill Includes Significant Tax Hike and Restriction on Real-Time Betting
Massachusetts sports betting could look completely various if a brand-new expense proposed in the Senate succeeds. And if history is any sign, controlled sports betting in other states could also change dramatically.
SD 1657 existed by Sen. John Keenan. “An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting” intends to increase the existing sports betting tax rate from 20% to 51%. In Addition, Sen. Keenan calls for a total ban on live sports betting (in-game wagering) and prop bets.
The main point to keep in mind is that Massachusetts has actually been at the forefront of stricter sports betting guidelines. The 2nd thing to understand is that the language of this expense resembles the SAFE Bet Act, a federal piece of legislation presented in 2024.
This bill was presented not long after previous Massachusetts Governor and existing NCAA president Charlie Baker testified in front of the Senate in a meeting on sports betting guideline.
So, while this is presently a Massachusetts costs, it’s likely to impact other states that offer managed sports betting.
A closer look at SD 1657
Tax
Starting with the tax rate increase, bringing sports betting to 51% has been a target for Sen. Keenan before. Keenan proposed a tax increase at the last legislative session, however it was declined. This boost would have come in the state’s budget plan bill.
Just 3 markets have tax rates of 51%, the highest in the country: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts currently ranks sixth highest.
Prohibiting live betting and prop betting
The procedure restricts in-play (live sports betting) or prop sports betting. Just straight wagers would be allowed, limiting sportsbooks to using just moneyline, spread, and totals.
While Massachusetts and other markets have limitations on collegiate wagering, this would affect even professional sporting events.
The costs likewise seeks to add benefits and same-game parlays to the category of “unreasonable and misleading practices.” Sportsbooks favour same-game parlays due to their high “hold” percentage, the quantity of money they keep off each $1 wagered.
Player Limits
SD 1657 likewise aims to create necessary day-to-day and regular monthly limits for bettors. Bettors might not wager more than $1,000 a day and $10,000 a month without an ‘cost assessment’ which involves checking savings account. A gamer can not wager more than 15% of the quantity in their account.
Massachusetts would become the very first market to need a cost assessment on bettors.
Marketing limitations
Keenan also wishes to get rid of advertising throughout televised sporting events. The measure would forbid sportsbooks from running ads during video games. The Massachusetts Gaming Commission has checked out producing a restriction on in-game advertisements before. However, this did not go through as nationwide television deals make this difficult to implement.
Will the procedure pass?
The step is extreme in its modifications to the sports betting industry in Massachusetts. Banning prop sports betting and increasing the sports betting tax rate will likely result in pushback from local sportsbooks and industry fans.
Because of this, the procedure will likely be fought in the Senate and your home of Representatives. In the previous session, Keenan failed to raise the tax rate.
He would need to persuade the other senators who did not support his initiative before to change their minds. If and when the Senate discusses this procedure, it is difficult to tell how it will be received.
