Massachusetts Senate Passes a Comprehensive Bill That Addresses Important Sports Betting Topics

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

A die-hard fan of the Patriots, Matt Speakman is an expert on everything related to sports betting and DFS sites. Over the years, he has proven a valuable asset for our team at online-gambling.com. You can find Speakman's professional tips and tricks in any of his many articles on the website.

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Last updated: April 25, 2022

The Massachusetts Senate has passed sports betting bill. The bill, SB 2844, prohibits wagering on college sports. It also includes tax rates of 35% for digital wagering, 20% for retail wagering, and unusually rigid advertising guidelines. Instead of being sent to Gov. Charlie Baker for signature, the bill will be sent to the conference committee with the bill H.3977, which was passed last summer.

Some industry insiders believe that the bill will not pass the conference committee. Given the issues and timeline, bettors should forget about being able to wager in Massachusetts anytime soon. However, New York online betting went live this year, giving a glimmer of hope to sports fans in Massachusetts.

Sen. Eric Lesser, a long-time supporter of legal wagering, discussed the benefits of delaying acting on legislation. Below is what he said:

“Massachusetts is definitely not the first state to legalize sports betting, and it will not be the last. But because we waited, we were able to learn what works and what doesn’t work.”

Some of the Key Issues

Industry insiders see the Massachusetts Senate bill as a bad deal that will limit competition, cause unique technical challenges, and allow the black market to flourish. The bill allows for only one skin per retail location, resulting in three digital platforms. This is much less than other legal states with similar populations.

The aim is for a conference committee to agree on a more mainstream model that includes a lower tax rate, the ability to bet on at least some college events and sports, and lifting advertising restrictions.

The Massachusetts Senate-passed bill proposes a 35% tax rate on digital gaming and a 20% tax rate on retail gaming. Despite efforts to persuade the chamber that the high rates would stifle market competition, an amendment to reduce them to 10% and 12.5% failed 35-4.

College Ban’s Impact on State Tax Dollars

College sports betting is another high-profile concern. Senator Patrick O’Connor put forward three amendments that would have permitted some form of wagering on college sports and maybe amateur sports and esports. However, these amendments were not accepted.

O’Connor argued that prohibiting betting on college sports will drive bettors to the black market and will cost the state 25% of anticipated gaming tax revenue, but his arguments fell on deaf ears.

The vast majority of the 40-plus amendments offered failed. The only significant amendment approved was No. 68, which reinforced the prohibition on using credit cards to fund accounts.

Is It Possible to Comply With the Idea?

The main issue in terms of advertising is a prohibition on sportsbook advertising during live television events. In a letter to Senate leadership, a group of casinos dealt with the matter.

O’Connor feels that complying with the ban would be practically impossible. Instead of mandating how advertisements are handled, he proposes that lawmakers should leave the decision to the state’s gaming commission.

Although his amendment failed, O’Connor raised important arguments that will undoubtedly be discussed during the conference committee. As previously mentioned, one of his major concerns is that if sports betting doesn’t get legalized, wager enthusiasts will turn to the black market.