Sport Betting Industry Looks To Protect Itself

New Massachusetts Sports Betting Proposal Contains Massive Tax Increase & Prohibition on In-Play Betting

Massachusetts sports betting might look totally different if a brand-new bill proposed in the Senate is successful. And if history is any indication, managed sports betting in other states could likewise change considerably.

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 complete restriction on live betting (in-game wagering) and prop bets.

The main thing to remember is that Massachusetts has actually been at the leading edge of more stringent sports betting guidelines. The 2nd thing to know is that the language of this bill resembles the SAFE Bet Act, a federal piece of legislation presented in 2024.

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

So, while this is currently a Massachusetts costs, it’s likely to impact other states that use managed sports betting.

A closer take a look at SD 1657

Tax

Starting with the tax rate boost, bringing sports betting to 51% has actually been a target for Sen. Keenan before. Keenan proposed a tax increase at the last legislative session, but it was declined. This increase would have can be found in the state’s budget plan bill.

Only 3 markets have tax rates of 51%, the highest in the country: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts presently ranks sixth highest.

Banning live betting and prop betting

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

While Massachusetts and other markets have restrictions on collegiate betting, this would impact even expert sporting occasions.

The expense likewise looks for to add benefits and same-game parlays to the classification of “unfair and misleading practices.” Sportsbooks favour same-game parlays due to their high “hold” portion, the amount of money they deflect each $1 wagered.

Player Limits

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

Massachusetts would end up being the first market to require an affordability assessment on bettors.

Marketing constraints

Keenan likewise wishes to eliminate advertising throughout televised sporting occasions. The would restrict sportsbooks from running advertisements throughout games. The Massachusetts Gaming Commission has actually looked into creating a ban on in-game advertisements before. Nevertheless, this did not go through as national TV deals make this hard to enforce.

Will the step pass?

The procedure is extreme in its modifications 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 advocates.

Because of this, the measure will likely be fought in the Senate and the House 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 gotten.