- Sen. John F. Keenan (D – Norfolk/Plymouth) introduced a bill to drastically alter the state’s sports betting landscape
- The legislation proposes a 155% increase to the state’s sports betting tax rate
- His bill also proposes a complete ban on in-game sports betting and all prop bets
One Massachusetts lawmaker is hoping to drastically alter the state’s sports betting landscape.
Sen. John F. Keenan (D – Norfolk/Plymouth) recently introduced SD 1657, “An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting.” If approved, Keenan’s legislation would set some imposing restrictions on the commonwealth’s sports betting market and the way customers wager in the state.
His legislation calls for a 155% increase to the state’s current 20% sports betting tax rate, a complete ban on in-game and prop bets, and prohibits sports betting ads during televised sporting events.
Personal Wagering Limits
Keenan’s bill calls for an increase to the state’s sports betting tax rate from 20% to 51%, putting the commonwealth in line with New York, Rhode Island, and New Hampshire as the highest taxed sports betting states in the country.
This is not a new venture for Keenan, who proposed a similar amendment to the Senate’s FY 2025 Massachusetts budget. It’s a fair share for operators to pay as they’ve experienced far more financial success in Massachusetts than they originally estimated, he said during the budget meetings last May.
“If we do not act now, there will be no going back with this industry,” Keenan said.
His amendment was roundly rejected by his Senate colleagues.
However, his new piece of legislation — in addition to the tax increase — is also calling for a complete rehash of the way the state offers sports betting. Under his new bill, the following changes would be made:
- Ban on in-game sports betting
- Ban on prop bets
- Prohibition on sports betting during televised sporting events
- Prohibition on customers placing more than $1,000 a day, or $10,000 a month, without an operator conducting an affordability check on the customer
- Limiting wagers to 15% of a users bank account
- No operator employee – such as a director, officer, owner – can receive compensation for any percentage of wagers or deposits placed by a customer
- Increased funding ($2 million) to problem and responsible gambling initiatives
- Promotion or advertisements of bonuses, same game parlays, odds boosts, reload bonuses, or risk-free, no-sweat, or other free wagers added to the state’s unfair or deceptive acts or practices
The changes to the state’s sports betting market would be widespread and are more expansive than the simple tax rate increase he proposed during the 2024 session. Several pieces of his bill bear similarities to a national piece of sports betting legislation that has also been recently introduced.
Similarities to SAFE Bet Act
Several facets of Keenan’s bill bear a strong resemblance to Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal’s (D-CT) Supporting Affordability & Fairness with Every Bet Act (SAFE Bet Act), a piece of legislation to reduce gambling addiction, gambling related harms, and establish minimum federal standards for sports betting advertisements and use of artificial intelligence.
Under the SAFE Bet Act, sports betting advertisements would be banned from 8 a.m. to 10 p.m., be prohibited from airing during live sporting events, and prohibit ads “designed to induce use of gambling products by showing audience how to gamble or explaining how wagers work.”
If approved, users would not be able to deposit more than five times during a 24-hour period and would require operators to conduct “affordability checks” before accepting large wagers from customers. Additionally, it prohibits the use of credit cards to fund sports betting accounts.
A proposed bill in Massachusetts is stirring up controversy as it includes a tax increase for sports betting and a ban on in-game betting. The bill, which is currently being debated in the state legislature, aims to regulate the growing industry of sports betting in the state.
One of the key provisions of the bill is a tax increase on sports betting revenue. Currently, sports betting operators in Massachusetts are subject to a 10% tax on their revenue. The proposed bill would increase this tax to 15%, which has sparked concerns among industry stakeholders who argue that a higher tax rate could stifle growth in the industry.
In addition to the tax increase, the bill also includes a ban on in-game betting. In-game betting, also known as live betting, allows bettors to place wagers on events that are happening in real-time during a sporting event. Proponents of the ban argue that in-game betting can lead to problem gambling and should be restricted to protect consumers.
Opponents of the ban, however, argue that in-game betting is a popular and lucrative aspect of sports betting that should not be prohibited. They argue that banning in-game betting could drive bettors to illegal or offshore betting sites, where consumer protections are lacking.
The proposed bill has sparked a heated debate among lawmakers, industry stakeholders, and advocacy groups. Supporters of the bill argue that it is necessary to regulate the sports betting industry and protect consumers from potential harm. Opponents, on the other hand, argue that the tax increase and ban on in-game betting could have negative consequences for the industry and for consumers.
As the debate continues, it remains to be seen whether the proposed bill will ultimately be passed into law. Lawmakers will need to carefully consider the potential impacts of the tax increase and ban on in-game betting before making a decision on the future of sports betting in Massachusetts.
