Recent Massachusetts Sports Betting Bill Includes Significant Tax Hike & Prohibition on In-Play Betting

Massachusetts sports betting might look entirely various if a new bill proposed in the Senate succeeds. And if history is any indication, controlled sports betting in other states could likewise change considerably.

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%. Furthermore, Sen. Keenan calls for a total ban on live betting (in-game betting) and prop bets.

The main thing to bear in mind is that Massachusetts has been at the leading edge of stricter sports betting regulations. The 2nd thing to understand is that the language of this costs is similar to the SAFE Bet Act, a federal piece of presented in 2024.

This bill was presented not long after former Massachusetts Governor and existing NCAA president Charlie Baker testified in front of the Senate in a meeting on sports betting guideline.

So, while this is currently a Massachusetts expense, it’s likely to affect other states that use controlled sports betting.

A closer take a look at SD 1657

Tax

Beginning with the tax rate boost, bringing sports betting to 51% has actually been a target for Sen. Keenan before. Keenan proposed a tax boost at the last legal session, but it was turned down. This boost would have been available in the state’s spending plan costs.

Only 3 markets have tax rates of 51%, the highest in the nation: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts currently ranks 6th highest.

Banning live betting and prop betting

The procedure forbids in-play (live betting) or prop betting. Only straight wagers would be permitted, limiting sportsbooks to offering just moneyline, spread, and totals.

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

The bill likewise seeks to include rewards and same-game parlays to the category of “unjust and deceptive practices.” Sportsbooks favour same-game parlays due to their high “hold” portion, the amount of money they deflect each $1 wagered.

Gamer Limits

SD 1657 also aims to develop obligatory daily and monthly limits for bettors. Bettors could not wager more than $1,000 a day and $10,000 a month without an ‘affordability assessment’ which involves examining bank accounts. A gamer can not wager more than 15% of the quantity in their account.

Massachusetts would end up being the first market to need a cost evaluation on bettors.

Marketing restrictions

Keenan also wishes to remove marketing throughout televised sporting events. The step would prohibit sportsbooks from running ads throughout video games. The Massachusetts Gaming Commission has actually checked out producing a restriction on in-game ads before. Nevertheless, this did not go through as national TV offers make this tough to impose.

Will the procedure pass?

The step 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 supporters.

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

He would have to convince the other senators who did not support his effort before to change their minds. If and when the Senate discusses this measure, it is difficult to inform how it will be received.