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Just over two years after launching mobile sports wagering, Massachusetts lawmakers are seeking significant changes to the industry.
A bill, titled “The Bettor Health Act,” calls for sweeping reforms, including new guidelines for advertising, a ban on in-game and prop bets, and a tax increase on mobile sports wagering revenue from 20% to 51%. The bill passed through committee with a 5-0 vote earlier this month and now heads to the Senate Committee on Ways and Means.
State Sen. John Keenan, the bill’s sponsor, expressed regret for not acting sooner during a Nov. 13 hearing of the Joint Committee on Economic Development and Emerging Technologies.
“We unleashed an industry that now promotes betting on anything and everything imaginable and unimaginable all over the world, 24 hours a day, every single day,” Keenan said. “I want to publicly apologize to those who’ve lost the opportunity to sit and watch a game just for the enjoyment of the game.
Keenan also offered apologies to those struggling with gambling addiction and families who have lost loved ones to suicide related to gambling issues.
Proposed legislative changes
If passed, Massachusetts would join a small group of states that have updated legislation to tighten regulations on advertising, betting types, taxation.
Tax revenue realignment
The bill would more than double the tax rate on online sports wagering revenue, moving it from 20% to 51%. During his testimony, Kennan noted that a 51% rate would align Massachusetts with New York, New Hampshire, and Rhode Island—states where he noted sports betting continues to thrive.
The legislation also seeks to double the amount of tax revenue allocated to the Public Health Trust Fund. According to the state, the fund supports research, prevention, and recovery services to mitigate the harmful effects of problem gambling.
Restricting high-risk betting types
The Bettor Health Act would outlaw prop bets and in-game betting. Keenan characterized both as “highly addicting” and argued they put athletes at risk of “throwing” games or influencing specific outcomes for bettors.
When asked whether he believed prop betting would lead to scandals in Massachusetts similar to those recently seen in the NBA and MLB, Keenen was decisive.
“Yes, I foresee those issues happening all across the country,” he said. “If we don’t think that they’re already happening and haven’t been discovered, we’re pretty naive.”
New advertising restrictions
The bill would ban sports betting advertisements during televised sporting events. In conjunction with a ban on in-play wagering, the moratorium is intended to curb problem gambling by requiring bettors to place wagers before an event begins.
Implementing affordability checks
Currently, Massachusetts bettors can wager significant sums daily without verification of their financial assets. The bill would require gambling operators to conduct affordability checks and impose betting limits based on a user’s verified bank or savings account balances.
