The Bay State’s chief executive, Charlie Baker, has put his signature on a measure that will legalize wagering on sporting events within the Commonwealth. This legislation, approved by the state’s lawmakers, grants permission to gambling houses and horse racing venues to seek permits for offering sports betting services. The bill also provides for seven licenses exclusively for online betting operations. Each permit will carry a price tag of $5 million.
Wagers placed online will be subject to a 20% tax, while bets made at brick-and-mortar casinos and racetracks will face a 15% levy. Residents will have the opportunity to place bets on a wide array of sporting events, including collegiate contests, but they will be prohibited from wagering on games involving teams from Massachusetts.
The Massachusetts Gaming Commission will take on the responsibility of overseeing the newly established sports betting sector. The commission has been diligently preparing for this task for a considerable period. They will now embark on the process of collaborating with prospective operators to determine the precise number of licenses required.
The Massachusetts Gaming Commission’s top administrator, Karen Wells, stated: “As the leader publicly mentioned, our team has been diligently preparing for the legalization of sports wagering in Massachusetts.
We have identified over two hundred potential rules, adopted a structure to utilize industry-respected technical standards, established infrastructure to examine and issue permits, begun the recruitment process for the sports betting director, and scheduled public gatherings.
“Now that we have a law outlining our duties as a regulator, we will collaborate with interested parties to swiftly establish this new sector, emphasizing integrity, player safety, and consumer protection.”
The legislation was approved by the state legislature in the final hours of this year’s legislative session, ending months of stalemate after the House and Senate passed their own bills, which had significant differences.
The House passed a bill in July 2021 that was consistent with other US sports betting bills, featuring a 12.5% tax rate, a $5 million licensing fee, and few product or marketing limitations.
However, the Senate’s version included more restrictions, including prohibiting many forms of marketing, such as promotional bets. The bill also prohibited marketing during live sporting events and only allowed online marketing if 85% of the audience was “reasonably expected to be 21 years of age or older.”
The upper house legislation does not permit wagering on collegiate athletic contests. Concurrently, internet sports betting will be subject to a 35% levy on earnings, while brick-and-mortar sports betting will be taxed at a rate of 20%.
Due to the disparities between the two legislative proposals, the state’s lawmaking body has established a sports betting conference panel, comprising representatives from both chambers, to negotiate a mutually agreeable solution.
Earlier in the week, the Massachusetts Gaming Commission cautioned that the state’s introduction of legal sports betting might be postponed, as they are still finalizing the regulatory guidelines for the sector.
Commission member Bradford Hill emphasized the significance of the state formulating robust regulations, even if it necessitates delaying the launch date.
“If we aim to execute this correctly, we must proceed deliberately,” he stated. “I’ve observed some individuals in the media who are eager to expedite this process, and I simply wish to inform the public that, in my opinion — and this is my personal perspective, not necessarily the commission’s — it will require a more extended timeframe.
“I am content with this, as I am committed to achieving a satisfactory outcome. I believe the public needs to grasp that this is a rather intricate procedure.”
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