Recent MA Sports Gambling Bill Contains Substantial Tax Increase & Prohibition on Real-Time Betting

New Massachusetts Sports Betting Bill Contains Significant Tax Hike & Prohibition on Live Betting

Massachusetts sports betting might look totally various if a new expense proposed in the Senate succeeds. And if history is any sign, controlled sports betting in other states could likewise alter significantly.

SD 1657 existed by Sen. John Keenan. “An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting” aims to increase the present sports betting tax rate from 20% to 51%. Additionally, Sen. Keenan requires a total restriction on (in-game wagering) and prop bets.

The main thing to bear in mind is that Massachusetts has actually been at the leading edge of more stringent sports betting guidelines. The second thing to understand is that the language of this bill resembles the SAFE Bet Act, a federal piece of legislation presented in 2024.

This bill was introduced not long after previous Massachusetts Governor and present NCAA president Charlie Baker affirmed in front of the Senate in a meeting on sports betting regulation.

So, while this is currently a Massachusetts bill, it’s most likely to affect other states that provide managed sports betting.

A closer take a look at SD 1657

Taxation

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 turned down. This boost would have been available in the state’s budget costs.

Only three markets have tax rates of 51%, the greatest in the country: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts presently ranks sixth greatest.

Prohibiting live betting and prop betting

The measure prohibits in-play (live betting) or prop betting. Only straight wagers would be permitted, restricting sportsbooks to using just moneyline, spread, and totals.

While Massachusetts and other markets have constraints on collegiate wagering, this would impact even professional sporting events.

The expense likewise seeks to add rewards and same-game parlays to the classification of “unjust and misleading practices.” Sportsbooks favour same-game parlays due to their high “hold” percentage, the quantity of money they keep off each $1 wagered.

Gamer Limits

SD 1657 likewise aims to produce mandatory daily and regular monthly limits for bettors. Bettors might not wager more than $1,000 a day and $10,000 a month without an ‘cost evaluation’ which involves inspecting bank accounts. A player can not wager more than 15% of the amount in their account.

Massachusetts would end up being the very first market to need an affordability evaluation on bettors.

Advertising constraints

Keenan also wants to remove advertising during telecasted sporting occasions. The measure would forbid sportsbooks from running advertisements throughout video games. The Massachusetts Gaming Commission has actually looked into developing a restriction on in-game advertisements before. However, this did not go through as nationwide TV offers make this tough to implement.

Will the procedure pass?

The step is severe in its changes to the sports betting industry in Massachusetts. Banning prop betting and increasing the sports betting tax rate will likely cause pushback from local sportsbooks and market supporters.

Because of this, the step will likely be battled in the Senate and your home of Representatives. In the previous session, Keenan stopped working to raise the tax rate.

He would need to encourage the other senators who did not support his initiative before to alter their minds. If and when the Senate discusses this measure, it is impossible to tell how it will be gotten.