New MA Sports Betting Proposal Features Substantial Tax Hike and Prohibition on Real-Time Betting 29 views

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New MA Sports Betting Proposal Features Substantial Tax Hike and Prohibition on Real-Time Betting

Massachusetts sports betting might look completely various if a brand-new costs proposed in the Senate is successful. And if history is any sign, regulated sports betting in other states might likewise change dramatically.

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

The main thing to keep in mind is that Massachusetts has actually been at the forefront of more stringent sports betting regulations. The second thing to know is that the language of this expense resembles the SAFE Bet Act, a federal piece of legislation presented in 2024.

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

So, while this is currently a Massachusetts costs, it’s likely to affect other states that offer controlled sports betting.

A closer take a look at SD 1657

Tax

Starting with the tax rate increase, bringing sports betting to 51% has actually been a target for Sen. Keenan before. Keenan proposed a tax increase at the last legal session, but it was turned down. This boost would have come in the state’s budget plan costs.

Only three markets have tax rates of 51%, the greatest in the country: New York, Rhode Island, and New Hampshire. At 20%, Massachusetts presently ranks 6th greatest.

Banning live betting and prop betting

The procedure prohibits in-play (live betting) or prop sports betting. Just straight wagers would be enabled, limiting sportsbooks to providing only moneyline, spread, and overalls.

While Massachusetts and other markets have restrictions on college wagering, this would affect even expert sporting occasions.

The expense also looks for to add benefits and same-game parlays to the classification of “unjust and deceptive practices.” Sportsbooks favour same-game parlays due to their high “hold” percentage, the quantity of cash they deflect each $1 bet.

Gamer Limits

SD 1657 likewise aims to produce compulsory daily and month-to-month limitations for bettors. Bettors could not wager more than $1,000 a day and $10,000 a month without an ‘cost assessment’ which includes inspecting bank accounts. A player can not wager more than 15% of the amount in their account.

Massachusetts would end up being the first market to need a price assessment on bettors.

Advertising restrictions

Keenan likewise wishes to eliminate marketing during telecasted sporting occasions. The step would forbid sportsbooks from running advertisements during games. The Massachusetts Gaming Commission has actually checked out creating a restriction on in-game ads before. Nevertheless, this did not go through as national TV deals make this hard to impose.

Will the step pass?

The measure is harsh in its modifications to the sports betting industry in Massachusetts. Banning prop sports betting and increasing the sports betting tax rate will likely lead to pushback from local sportsbooks and industry advocates.

Because of this, the measure will likely be battled in the Senate and the House of Representatives. In the previous session, Keenan failed 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 impossible to inform how it will be received.