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New Massachusetts Sports Betting Bill Contains Significant Tax Increase & Prohibition on Live Betting

Massachusetts sports betting could look completely various if a new costs proposed in the Senate succeeds. And if history is any sign, controlled sports betting in other states might likewise alter considerably.

SD 1657 existed by Sen. John Keenan. "An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting" aims to increase the existing sports betting tax rate from 20% to 51%. In Addition, Sen. Keenan requires a total ban on live betting (in-game betting) and prop bets.

The main thing to remember is that Massachusetts has been at the forefront of stricter sports betting guidelines. The second thing to understand is that the language of this costs resembles the SAFE Bet Act, a federal piece of legislation presented in 2024.

This costs was introduced not long after previous 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 currently a Massachusetts costs, it's most likely to impact other states that use managed sports betting.

A closer take a look at SD 1657

Tax

Starting with the tax rate increase, bringing sports betting to 51% has actually been a target for Sen. Keenan before. Keenan proposed a tax boost at the last legal session, but it was turned down. This increase would have come in the state's spending plan bill.

Only three markets have tax rates of 51%, the greatest in the nation: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts presently ranks 6th highest.

Banning live betting and prop betting

The step forbids in-play (live sports betting) or prop betting. Only straight wagers would be enabled, limiting sportsbooks to using just moneyline, spread, and totals.

While Massachusetts and other markets have limitations on college betting, this would affect even expert sporting events.

The expense likewise seeks to add bonuses and same-game parlays to the category of "unfair and misleading practices." Sportsbooks favour same-game parlays due to their high "hold" portion, the amount of cash they deflect each $1 wagered.

Player Limits

SD 1657 likewise intends to develop obligatory everyday and monthly limits for bettors. Bettors might not wager more than $1,000 a day and $10,000 a month without an 'affordability assessment' which includes checking savings account. A gamer can not wager more than 15% of the amount in their account.

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

Advertising constraints

Keenan also wishes to get rid of advertising throughout telecasted sporting events. The procedure would prohibit sportsbooks from running ads during video games. The Massachusetts Gaming Commission has looked into developing a ban on in-game advertisements before. However, this did not go through as nationwide TV deals make this difficult to enforce.

Will the procedure pass?

The step is harsh in its changes 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 supporters.

Because of this, the procedure will likely be battled in the Senate and the House of Representatives. In the previous session, Keenan stopped working to raise the tax rate.

He would have to persuade the other senators who did not support his effort before to change their minds. If and when the Senate discusses this measure, it is difficult to tell how it will be received.