Recent Massachusetts Sports Betting Proposal Contains Significant Tax Hike Restriction On In-Play Betting

Massachusetts sports betting might look totally various if a brand-new expense proposed in the Senate is successful. And if history is any indicator, managed sports betting in other states could also alter drastically.


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


The main point to keep in mind is that Massachusetts has been at the forefront of stricter sports betting policies. The 2nd thing to know is that the language of this costs resembles the SAFE Bet Act, a federal piece of legislation presented in 2024.


This bill was presented not long after previous Massachusetts Governor and current NCAA president Charlie Baker testified in front of the Senate in a meeting on sports betting policy.


So, while this is currently a Massachusetts expense, it's most likely to impact other states that provide regulated sports betting.

A closer look at SD 1657
Taxation

Beginning with the tax rate boost, bringing sports betting to 51% has been a target for Sen. Keenan before. Keenan proposed a tax boost at the last legal session, but it was declined. This boost would have come in the state's budget expense.
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Only 3 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 measure restricts in-play (live betting) or prop betting. Only straight wagers would be allowed, limiting sportsbooks to offering only moneyline, spread, and totals.
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While Massachusetts and other markets have limitations on college betting, this would affect even professional sporting occasions.
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The costs likewise looks for to include benefits and same-game parlays to the category of "unfair and misleading practices." Sportsbooks favour same-game parlays due to their high "hold" percentage, the quantity of money they keep off each $1 wagered.
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Player Limits

SD 1657 also intends to create necessary day-to-day and month-to-month limitations for bettors. Bettors might not wager more than $1,000 a day and $10,000 a month without an 'cost assessment' which includes checking savings account. A player can not wager more than 15% of the quantity in their account.


Massachusetts would become the very first market to require an affordability evaluation on bettors.

Advertising restrictions

Keenan also wants to remove marketing throughout televised sporting events. The step would restrict sportsbooks from running ads throughout video games. The Massachusetts Gaming Commission has checked out developing a ban on in-game ads before. However, this did not go through as nationwide TV deals make this tough to impose.

Will the step pass?

The measure is severe in its changes to the sports betting industry in Massachusetts. Banning prop betting and increasing the sports betting tax rate will likely result in pushback from local sportsbooks and industry supporters.


Because of this, the step will likely be fought 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 step, it is difficult to tell how it will be received.