Massachusetts sports betting could look completely different if a brand-new expense proposed in the Senate achieves success. And if history is any indication, managed sports betting in other states might likewise alter significantly.
SD 1657 was presented by Sen. John Keenan. "An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting" aims to increase the current 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 point to bear in mind is that Massachusetts has been at the leading edge of more stringent sports betting guidelines. The 2nd thing to understand is that the language of this costs is similar to the SAFE Bet Act, a federal piece of legislation presented in 2024.
This bill was presented not long after former Massachusetts Governor and present NCAA president Charlie Baker testified in front of the Senate in a meeting on sports betting regulation.
So, while this is presently a Massachusetts costs, it's most likely to impact other states that use controlled sports betting.
A closer take a look at SD 1657
Taxation
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, however it was rejected. This boost would have been available in the state's budget costs.
Only 3 markets have tax rates of 51%, the highest in the country: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts currently ranks 6th greatest.
Banning live betting and prop betting
The procedure prohibits in-play (live betting) or prop betting. Only straight wagers would be permitted, limiting sportsbooks to providing just moneyline, spread, and totals.
While Massachusetts and other markets have restrictions on college betting, this would impact even expert sporting occasions.
The expense also looks for to add bonus offers and same-game parlays to the classification of "unfair and deceptive practices." Sportsbooks favour same-game parlays due to their high "hold" portion, the amount of cash they keep off each $1 bet.
Gamer Limits
SD 1657 likewise aims to create mandatory daily and monthly limits for bettors. Bettors might not wager more than $1,000 a day and $10,000 a month without an 'price assessment' which includes checking bank accounts. A player can not wager more than 15% of the quantity in their account.
Massachusetts would end up being the very first market to need an affordability evaluation on bettors.
Advertising constraints
Keenan also wishes to eliminate marketing throughout televised sporting occasions. The measure would prohibit sportsbooks from running ads throughout games. The Massachusetts Gaming Commission has looked into developing a ban on in-game ads before. However, this did not go through as nationwide TV offers make this tough to enforce.
Will the step pass?
The measure 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 industry fans.
Because of this, the procedure 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 need to encourage the other senators who did not support his initiative before to alter their minds. If and when the Senate discusses this step, it is difficult to inform how it will be received.