Sport Betting Industry Aims To Protect Itself

New Massachusetts Sports Betting Proposal Includes Massive Tax Increase and Prohibition on Real-Time Betting

Massachusetts sports betting could look completely different if a brand-new expense proposed in the Senate succeeds. And if history is any sign, regulated sports betting in other states might also change dramatically.

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

The main thing to keep in mind is that Massachusetts has been at the leading edge of more stringent sports betting regulations. The second thing to understand is that the language of this expense is similar to the SAFE Bet Act, a federal piece of legislation introduced in 2024.

This expense was introduced not long after former Massachusetts Governor and current NCAA president Charlie Baker testified in front of the Senate in a meeting on sports betting regulation.

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

A closer take a look at SD 1657

Taxation

Starting with the tax rate boost, bringing sports betting to 51% has been a target for Sen. Keenan before. Keenan proposed a tax boost at the last legal session, but it was declined. This boost would have been available in the state’s budget plan expense.

Only 3 markets have tax rates of 51%, the highest in the country: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts presently ranks sixth highest.

Prohibiting live betting and prop betting

The step restricts in-play (live betting) or prop betting. Only straight wagers would be enabled, restricting sportsbooks to using just moneyline, spread, and overalls.

While Massachusetts and other markets have constraints on college wagering, this would impact even expert sporting occasions.

The expense also looks for to include bonus offers and same-game parlays to the category of “unreasonable and deceptive practices.” Sportsbooks favour same-game parlays due to their high “hold” percentage, the quantity of cash they deflect each $1 bet.

Player Limits

SD 1657 likewise aims to create mandatory everyday and monthly limitations for bettors. Bettors might not wager more than $1,000 a day and $10,000 a month without an ‘cost assessment’ which includes inspecting savings account. A gamer can not wager more than 15% of the quantity in their account.

Massachusetts would end up being the first market to require an affordability evaluation on bettors.

Advertising restrictions

Keenan also wishes to eliminate advertising during televised sporting occasions. The measure would forbid sportsbooks from running advertisements throughout games. The Massachusetts Gaming Commission has actually checked out creating a restriction on in-game advertisements before. However, this did not go through as nationwide TV offers make this hard to implement.

Will the measure pass?

The measure is harsh in its changes to the sports betting industry in Massachusetts. Banning prop sports betting and increasing the sports betting tax rate will likely result in pushback from local sportsbooks and industry supporters.

Because of this, the step will likely be fought in the Senate and your home of Representatives. In the previous session, Keenan failed to raise the tax rate.

He would need to persuade the other senators who did not support his effort before to change their minds. If and when the Senate discusses this procedure, it is impossible to inform how it will be gotten.