Massachusetts Senate Rejects Proposal to Increase Betting Tax Rate to 51%

Massachusetts legalized betting in 2022, with retail operators subject to a 15% tax and online betting providers paying a 20% tax. The proposed hike aimed to make Massachusetts one of the states with the highest betting tax rates in the US.

Comparison with Other States

Sen. Keenan’s proposal would have placed Massachusetts alongside New York, which currently has a 51% tax rate on sports betting revenue. Similar efforts to raise betting tax rates are underway in Illinois and New Jersey.

Keenan argued that the tax increase would generate additional revenue to support harm reduction and problem gambling treatment programs. He claimed there were no legitimate reasons against raising the tax rate for sports wagering operators.

Legislative Outcome

Despite Keenan’s arguments, the Senate rejected the proposed tax increase under Amendment 828 to the state budget. The 31% tax hike was considered too steep, and the proposal failed to garner sufficient support.

In related developments, the Massachusetts Gaming Commission (MGC) announced it will review restrictions placed on winning bettors.

The MGC plans to investigate practices where operators limit accounts not for losing but for consistent winning, ensuring fair play and transparency in the state’s betting industry.