A Senate committee in Massachusetts has moved forward with a bill aimed at imposing stricter regulations on sports betting while also increasing the tax rate on gambling revenue.
The Joint Committee on Economic Development and Emerging Technologies unanimously approved Senate Bill 302, dubbed the Bettor Health Act, with a 5-0 vote. The proposal will now be reviewed by the Senate Ways and Means Committee.
Introduced by Senator John Keenan from Quincy, the legislation seeks to modify various aspects of gambling regulation in the state, including tax rates, advertising guidelines, types of wagers allowed, and measures for responsible gambling.
Currently, Massachusetts levies a 20% tax on gross gaming revenue from both online and retail sports betting operators. The new bill suggests raising this tax rate to 51%, marking a 155% increase, aligning Massachusetts with the tax structures in New York, New Hampshire, and Rhode Island.
Additionally, the proposal aims to boost funding for the Public Health Trust Fund, which finances responsible gambling initiatives. Under this bill, the fund would receive $2 million each year, an increase from the current $1 million allocation.
Since the launch of sports betting in Massachusetts on January 31, 2023, the state has accrued over $408 million in taxes and fees from sports betting operators as of January.
The initial sports betting legislation was enacted in the summer of 2022 and signed into law by former Governor Charlie Baker.
The Bettor Health Act would ban in-play wagering and proposition bets, mandating that licensed operators in Massachusetts eliminate these betting options from their platforms. Proposition bets involve wagers on specific events or statistical outcomes that are not tied to the final score of a game, which have come under scrutiny due to investigations into gambling activities involving athletes.
Now serving as president of the NCAA, Baker has advocated for a prohibition on proposition bets in college sports. In a letter to state gaming commissions, he revealed that the NCAA has initiated investigations into potential game manipulation involving approximately 40 student-athletes across 20 institutions over the past year.
The letter indicated that 11 student-athletes from seven schools had either wagered on their own performances, shared insider information with bettors, or engaged in game manipulation.
The bill also proposes limitations on individual wagering amounts. According to the new regulations, bettors would be restricted to placing bets of no more than $1,000 per day and $10,000 per month with any operator.
Furthermore, operators would be required to perform affordability checks to ensure that a bettor's gambling activity does not exceed 15% of their total bank account balance.
Additional responsible gambling measures would be introduced for operators as well. Sports betting companies would need to gather anonymized player data for research aimed at understanding the development and progression of gambling addiction. They would also have to implement systems to identify high-risk wagering behavior.
Senator Keenan emphasized that this legislation was introduced to tackle the repercussions of the rapid expansion of sports betting. “We have unleashed an industry that encourages betting on virtually anything, at any time, around the clock,” he remarked during a committee hearing on November 13.
He expressed regret, stating, “I want to apologize to those who have lost the ability to enjoy a game simply for its entertainment value, to those grappling with gambling addiction, and to their families. I also extend my condolences to those who have suffered losses due to gambling-related suicides.”
Moreover, the proposal seeks to impose restrictions on how sports betting operators advertise their services. Under the new regulations, advertisements for sports wagering would be banned during live sporting events, and promotional offers, such as bonuses and same-game parlays, would also be prohibited.