Lawmakers Officially Propose a Bill to Impose Limits on Massachusetts Sports Betting

A new Massachusetts sports betting bill is up for consideration in The Bay State legislature.

Called the “Better Health Act,” the initiative is being spearheaded by Senator John Keenan. While its purpose is multifaceted, the proposal predominantly seeks to place limits on sports betting in Massachusetts. This includes Massachusetts sportsbooks, but the initiative also wants to place restrictions on individual bettors.

Key details of the bill include all of the following:

• Raising the Massachusetts online sports betting tax rate for operators from 20 percent to 51 percent
• Placing on a ban on sports betting advertisements during game broadcasts
• Putting a limit on how much individuals can bet each day, at least until Massachusetts online sportsbooks have the capacity to conduct affordability checks, which would confirm someone has the finances required to stomach the risk inherent of gambling

Like all pieces of legislation, not everyone is in favor of Senator Keenan’s bill. State regulators are intrigued, particularly by the tax rate. As of now, only tax rates for sports betting in New York, sports betting in Rhode Island and sports betting in New Hampshire hit the 51 percent threshold. Sports betting in Delaware is in the same arena, with a 50 percent tax rate.

Of course, for the same reason many state officials like this bill, operators aren’t too keen on it. Businesses do not tend to favor massive increases in overhead. What’s more, this bill is unique because of its intended impact on the consumer. This opens the door for more opposition from voters who are ultimately sports betting customers. 

Massachusetts Sports Betting Operators Speak Out Against Tax Increase

The Sports Betting Alliance coalition is a trade association for legal sportsbooks in the United States. It includes operators such as DraftKings, FanDuel and BetMGM, among others. Together, they released a joint statement on Senator Keenan’s bill.

Not surprisingly, the coalition denounces the proposed Massachusetts sports betting tax increase. 

"Raising taxes on sports betting will only drive Massachusetts residents to use unregulated, offshore apps that actively flout state gaming law and the required consumer protections,” it reads (via Paul Burton of CBS News).. “Offshore online bookies, who pay no taxes, already provide better odds for the same games. This tax increase would make that difference even more drastic." 

Now, for anyone wondering why this initiative might drive residents to stop betting on sports in the United States and instead use top offshore sports betting apps, you are not alone. After all, the proposed tax is assessed on online sportsbooks in Massachusetts. It is not a consumer hike. 

In reality, this isn’t totally true. Just like tariffs, the increased expense from sportsbooks will invariably be passed on to the consumers. In this case, that process can take many forms.

As the Sports Betting Alliance’s statement references, the tax hike could lead to USA online sportsbooks offering odds with lower payouts to make up additional expenses. Previously, other mobile betting sites in the USA have kicked around added surcharges to transactions. These would include not only deposits and withdrawals, but also singular bet submissions. 

Indeed, other states have raised taxes without the same issue. Yes, sportsbooks have bandied about increasing transaction fees and worsening odds. But they generally don’t go through it. However, the Massachusetts sports betting tax bump represents a 255 percent increase. If it is successful, sportsbooks are unlikely to just accept it without some recourse. 

Consumers Seems Split on The Bay State’s Sports Betting Bill

As Burton’s report notes, certain Massachusetts residents are heavily in favor of the bill. He specifically cites Anthony Brewer, a recovering gambling addict.

 “I think it's very imperative that you are making a lot of money in the United States,” Brewer says. “How about saying 'Wait a minute, let's put a little money into the healthcare for those who are sick and suffering.”

Senator Keenan’s bill does this to some degree. The proposal also calls for  “sports betting companies to increase the money they contribute to public addiction services.” This presumably encompasses programs that support healthcare and maybe even sports betting education measures. 

Still, not all customers will get behind the bill. No one will likely have a problem with sports betting operators facing higher expenses. But some will not want to risk those same Massachusetts betting sites passing the fees onto them. 

More frequent and higher-roller bettors may also not appreciate the individually daily limits. It would be one thing if sportsbooks in the USA could universally confirm financial standing beyond processing deposits. That would better ensure the transactional process doesn’t suffer from lag. But this is not currently a common feature. 

Even if it were, not all customs would necessarily champion it. Many will not have sportsbooks having the ability to access their general financial standing beyond their betting account. As with many issues in the digital age, this can become a matter of privacy.

Will the Massachusetts Betting Bill be Successful?

A few months ago, when the Better Health Act was more of a concept, most assumed it would not be successful. By and large, this is still the case. But its official proposal changes the tenor of impressions.

Senator Keenan’s bill is scheduled to be heard by a committee by the end of April. That suggests it has gained some legs. While this does not mean it will be successful, it is evidence of at least some momentum.

Will Massachusetts sports betting sites increase this active opposition between now and then? Where will prevailing public sentiment land during that time? If the committee green lights it, will Senator Keenan’s bill make it past the House and Senate? 

These questions will get answered soon enough.

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