Massachusetts Bill Proposes 51% Sports Betting Tax and Mandatory Affordability Checks
A proposed bill in Massachusetts, SD 1657, aims to introduce sweeping reforms to the state’s sports betting industry. Titled the “Act to Address Economic, Health, and Social Problems Caused by Sports Wagering,” the legislation is spearheaded by Senator John F. Keenan of Norfolk and Plymouth. If passed, the bill would bring some of the strictest sports betting regulations in the U.S., potentially shaking up the market in unprecedented ways.
Key Changes Proposed in SD 1657
The bill outlines significant amendments to Massachusetts’ existing sports betting laws, focusing on taxation, player protections, advertising, and operator regulations. Here’s a closer look at what’s on the table:
Taxation Overhaul
- The online sports betting tax rate would rise sharply from 20% to 51%, aligning with the highest tax rates in the country.
Stronger Player Protections
- Live betting (in-play wagering) and proposition bets (props) would be banned entirely.
- Daily and monthly betting limits would be set at $1,000 per day and $10,000 per month.
- For players exceeding these limits, affordability checks would be mandatory, capping additional bets at 15% of their available bank balance.
Advertising Crackdowns
- Advertising during live sports broadcasts would be banned.
- Marketing promotions and incentives, including welcome bonuses, same-game parlays, odds boosts, and “risk-free bets,” would be classified as misleading and prohibited.
Operator Regulations
- Operators would be barred from compensating employees or partners based on customer wagers or deposits.
- Contributions to responsible gambling programs would double, requiring operators to pay $2 million annually instead of $1 million.
- Operators would also be required to share anonymized player data with state regulators for research and oversight. This data would include demographic information, betting behavior, and types of wagers placed.
Big Implications
If SD 1657 passes, it would create some of the toughest regulations in the country. The 51% tax rate on online sports betting would rival New York’s, potentially deterring some operators from continuing in the state.
At the same time, restrictions on live betting, promotional offers, and advertising could significantly impact how sportsbooks attract and retain players.
For players, the daily and monthly wagering limits, coupled with affordability checks, signal a shift toward prioritizing consumer protection over market expansion.
While these measures aim to prevent problem gambling, critics argue they could also push players toward unregulated offshore markets.
Unlikely to Pass in Full, But Still Significant
The proposed restrictions are likely to face strong opposition from operators, who already contend with tight margins in a competitive market.
The ban on popular promotional tools, like odds boosts and welcome bonuses, could make it harder for sportsbooks to compete. Meanwhile, the higher tax rate may discourage smaller operators from entering or staying in the Massachusetts market.
Despite its ambitious scope, SD 1657 faces long odds of becoming law in its current form. The sweeping nature of the proposed changes, particularly the 51% tax rate and bans on popular promotions, is likely to face significant opposition from the sports betting industry and other stakeholders.
However, even a softened version of the bill could dramatically reshape Massachusetts’ sports betting market.
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