Recent Massachusetts Sports Betting Proposal Includes Significant Tax Hike And Ban On In-Play Betting
Massachusetts sports betting could look completely different if a new bill proposed in the Senate succeeds. And if history is any indication, managed sports betting in other states could likewise change significantly.
SD 1657 was presented 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%. Additionally, Sen. Keenan requires a complete restriction on live betting (in-game betting) and prop bets.
The main thing to remember is that Massachusetts has actually been at the leading edge of more stringent sports betting policies. The 2nd thing to know is that the language of this costs 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 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 affect other states that provide managed sports betting.
A closer take a 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 boost at the last legal session, however it was declined. This increase would have can be found in the state's budget plan bill.
Just three markets have tax rates of 51%, the highest in the nation: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts currently ranks sixth greatest.
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Banning live betting and prop betting
The measure forbids in-play (live betting) or prop betting. Only straight wagers would be enabled, limiting sportsbooks to using only moneyline, spread, and overalls.
While Massachusetts and other markets have constraints on collegiate wagering, this would affect even expert sporting occasions.
The expense also seeks to include benefits and same-game parlays to the category of "unreasonable and misleading practices." Sportsbooks favour same-game parlays due to their high "hold" portion, the quantity of cash they keep off each $1 bet.
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Player Limits
SD 1657 also aims to produce mandatory everyday and monthly limitations for bettors. Bettors could not wager more than $1,000 a day and $10,000 a month without an 'price evaluation' which includes examining savings account. A gamer can not wager more than 15% of the amount in their account.
Massachusetts would end up being the first market to need a price assessment on bettors.
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Advertising limitations
Keenan likewise wishes to remove marketing throughout telecasted sporting occasions. The measure would forbid sportsbooks from running ads throughout video games. The Massachusetts Gaming Commission has actually looked into producing a ban on in-game advertisements before. However, this did not go through as national television offers make this tough to implement.
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Will the measure pass?
The measure is extreme 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 industry fans.
Because of this, the step will likely be combated in the Senate and the House of Representatives. In the previous session, Keenan failed to raise the tax rate.
He would have to persuade the other senators who did not support his effort before to alter their minds. If and when the Senate discusses this step, it is difficult to inform how it will be received.