The Massachusetts State Senate has approved a measure that would make wagering on sporting events legal within the state, but prohibit numerous forms of promotional activities.
Senate Bill 2844 introduces a clause to the Massachusetts General Laws explicitly stating that sports betting, both in person and online, is not considered unlawful gambling. The legislation has been forwarded to the state’s House of Representatives for review.
The legislation would also prohibit “advertising, marketing and branding through specific promotional items that, in the judgment of the commission, are likely to increase the probability of problematic gambling, which may include freebies, discount vouchers or promotional wagering credits.”
Furthermore, the bill would ban marketing during live sporting events and would only permit online marketing if 85% of the audience is “reasonably anticipated to be 21 years of age or older.”
Online sports betting would be subject to a 35% tax on revenue, while retail sports betting would be taxed at 20%.
Any existing gambling license holder would be eligible for a Class 1 sports betting license, provided they pay a $5 million application fee. The state’s three current gambling license holders are Wynn’s Encore Boston Harbor, MGM’s Springfield Casino and Plainridge Park Casino from Penn National Gaming.
Every operator will have the ability to provide retail and internet wagering services.
The state lottery board will grant up to six secondary licenses for web-based sports betting only through a competitive application process. Candidates must also submit a $5 million application charge.
Furthermore, Massachusetts Governor Charlie Baker is obligated to negotiate a new third-party gaming agreement with the state’s Native American groups, which will also permit sports betting.
Gamblers will be forbidden from placing bets on collegiate sports.
After reviewing the amendment, senators decided to replace Senate Bill 2844 with House Bill 933, which had already been approved by the House in 2021, and substituted all text of HB933 with SB2844. Senators then voted to approve this new version of HB933.
As the House has already passed a version of House Bill 933, a joint conference committee of both houses will now convene to craft a bill that both chambers can endorse.
The initial version of the House bill did not include a prohibition on promotions or college betting, and permitted land-based operators to possess three mobile skins as well as an unlimited number of internet-only licenses.
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