New Massachusetts Sports Betting Research Has Released

Gambling limits have become a hot topic inside the Massachusetts sports betting market. If recent developments are any indication, the focus isn’t going anywhere in the near future.

This concern isn’t new, either. The launch of sports betting in Massachusetts began in January 2023. Ever since then, more than a handful of regulators and policymakers have expressed concern about the circumstances under which operators have entered the market.

Some harp on the Massachusetts sports betting tax rate. They believe it should be higher. Others want to curtail sports betting advertisements in The Bay State. More than a few lament the reported uptick in problem gambling among the population. They tend to call for a more rigid regulatory process, including individual gambling limits.

Most of these points of emphasis are now being addressed in an official capacity. Senator John Keenan filed what’s being called the “Better Health Act.” Among its primary aims are increasing the Massachusetts sports betting tax from 20 to 51 percent. Beyond that, though, the bill seeks to impose sports betting limits on both the customer and online sportsbooks in the United States.

As of now, it is not totally clear whether Senator Keenan’s bill has the support necessary to make it over the hump. It is already facing opposition from sports betting sites in Massachusetts.

Policymakers will ultimately have the final say. And recent research released could serve as a boon for support of the Better Health Act.

Problem Gambling is on a Meteoric Rise in the Massachusetts Sports Betting Market

The folks over at NBC 10 in Boston are taking a look at data relayed by The Boston Globe. The figures they provide paint a troubling picture of problem-gambling trends in The Bay State. Consider this excerpt from the NBC 10 piece:

“According to The Boston Globe, Massachusetts residents have wagered over $13 billion on sports betting platforms since mobile sports platforms went live in the state in March 2023. [Note: Retail sports wagering launched in January 2023.] Calls to the state's problem gambling helpline have also risen sharply, with over 3,000 calls in fiscal year 2023, up from 1,379 the prior year. Among monthly gamblers who participated in online surveys conducted in 2014, 2022 and 2023, the percentage experiencing gambling problems jumped from 12.7 percent in 2014 to 20.9 percent in 2022 and to 25.6 percent in 2023, the Social and Economic Impacts of Gambling in Massachusetts research team reported to the Massachusetts Gaming Commission last year.”

These trends are not necessarily unique. Every market that legalized sports betting reports rises in problem-gambling cases.

That does not make the returns any less staggering. Consider the calls to the state’s problem gambling healthline. They climbed by over 217 percent in the span of one year. Beyond that, those who experienced what they deem gambling problems more than doubled over the course of a decade.

Even the one-year difference, between 2022 and 2023, verges on draw-dropping. Going from 20.9 percent of respondents reporting gambling issues to 25.6 percent may not seem like a big leap on the surface. But it is the equivalent of an 18 percent increase. That is significant when taking place over a single year.

Sports Betting Operators Continue to Push Back Against the Better Health Act

For many, the Better Health Act seems like a no-brainer. After all, why not do more to treat problem gambling? It will require more tax funds, but that’s why you increase the tax rate. It passes the cost onto sports betting operators.

Therein lies the largest roadblock. Mobile sports betting sites in the USA are a business. They will guard their financial future over any other interest. That includes adding layers of protection for the consumer. Not surprisingly, then, Massachusetts sports betting operators are loudly opposing the Better Health Act. As the folks over at NBC 10 report:

“Gambling industry representatives balked at the proposal, saying that if approved, sports betting in Massachusetts would be more heavily regulated than in any other state. ‘Data shows that problem gambling rates remain low since the rise of legal sports betting, consumer protections on the legal market are stronger than ever, and that most people spend less per month on sports betting than they spend in a week on their morning Starbucks,’ Nathan Click, a spokesperson for the Sports Betting Alliance, told the Globe.”

It is not immediately clear from where Click derives this data, so we can not speak to its legitimacy. But push-back from operators is expected. Whether it shapes or derails the Better Health Act is a separate matter.

Will the Better Health Act Pass?

Even months after the initiative was officially filed, it’s still too early to tell. In all likelihood, though, it will not pass in its current form. Industry experts consider it too aggressive.

While gambling limits are receiving a ton of attention at the moment, the tax rate increase is sizable. Going from 20 percent to 51 percent is akin to a 255 percent increase. Online sports betting operators will not incur that kind of bump without a fight.

Now, The Bay State has a few things working in its favor. For starters, a 51 percent tax is not unprecedented when it comes to online sports betting in the United States. The Delaware sports betting market and New York sports betting market have rates within that same ballpark.

Massachusetts is also one of the more premier betting markets in the USA. That is especially true so long as sports betting remains illegal in Texas, California, Georgia and Minnesota. This, of course, does not mean sports betting operators will accept massive upticks in regulatory practices and tax rates. But threats of leaving the market are likely unfounded. Massachusetts sports betting is too lucrative for companies to completely disregard.

With that said, we still assume the Better Health Act will wind up making concessions. That’s how these things work. Even then, we can’t be sure that it passes. But rest assured, if it does, it could mark a change for the entire industry—not just in Massachusetts, but the United States at large.

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