Massachusetts Makes Major Move Toward Legal Sports Betting Acceptance

One of the biggest and most exciting US markets still without legalized sports betting, Massachusetts, moved one step closer to the realization of their own platform on Friday when Governor Charlie Baker introduced a bill that would bring mobile and retail sports wagering to his state. Governor Baker presented Bill HD. 678 to the Massachusetts Municipal Association in advance of a meeting with them regarding his 2021 budget proposals.

Baker has made no secret in the past of his desires to get something done on legal sports betting for his state. With increased focus on the topic and with COVID-19 taking up a bit less oxygen in the state legislature, 2021 figures to be the best chance yet for Massachusetts go get in on the legal sports betting action and to start reaping the financial rewards such a platform brings with it.

The Long Road to This Point

Massachusetts has long been considered the next shoe to drop for the US legal sports betting industry but has not been able to get over the finish line. A legal sports betting platform has been years in the making and in 2020 it almost got there after a bill passed in the House but was held up in the Senate because of COVID-19 dominating the debate.

“Sports betting in Massachusetts isn’t new – it’s alive and well and has been for quite some time,” Sen. Brendan Crighton, top legal sports betting advocate said. “… I think it’s time for a change and I do believe we’re headed in that direction.”

A sports betting platform in Massachusetts has continued to gain support from one of the more rabid sport fanbases in the US. Massachusetts and area boast such iconic franchises as NFL's New England Patriots, the Boston Celtics of the NBA, MLB's Boston Red Sox and the Boston Bruins of the NHL.

The renewed push for legal sports betting in Massachusetts comes as neighboring New Hampshire, Rhode Island, New Jersey, and Pennsylvania are already taking legal sports bets and the state itself finds itself searching for new revenue options to mitigate the budgetary effects of the coronavirus pandemic.

Penn National and Wynn, two of the current brick-and-mortar facilities in the state in a joint statement recently said: “Sports wagering expansion by our neighboring states substantially affects the competitive posture of the gaming industry here in the Commonwealth and places us at a strong disadvantage, with Massachusetts jobs, revenues, and economic activity at stake”.

Bill HD 678

Bill HD 678 would allow licensed casinos and online sports betting providers to offer mobile betting throughout the state. It represents a dramatic expansion of a robust gaming economy presently running there. All professional and international sports would be included in the Bill - college sports will not at this time.

HD 678 would grant the Massachusetts Gaming Commission complete jurisdiction over the Massachusetts sports betting industry including the arduous application processes, the awarding of licenses and the regulation of the platform on the whole.

Under the bill, online providers could act as stand-alone providers without any brick-and mortar affiliation.

In-person sports betting at brick-and-mortar facilities would be taxed at 10% under Bill HD 678 with online providers being taxed at 12.5%. The application fee would be $100,000, and the licensing fee would be $500,000 upon approval. The licensing agreement would need to be reapproved every five years.

The Potential End Result

Massachusetts legislators have closely tied their proposal for a legal sports betting platform to New Jersey's, the most successful bet-friendly state in the nation. Success for the legal betting industry in the state similar to that of New Jersey means success for Massachusetts as a whole.

While not expected to approach a $1 billion per month handle like its mentor New Jersey, Massachusetts is expected to generate up to $35 million annually for state and local coffers. The potential end result if all goes according to plan is that Massachusetts becomes a top-tier legal sports betting state, resulting in a robust tax bump for needy state and local social programs.

Third Time a Charm?

The latest iteration of a legal sports betting proposal in Massachusetts is the third kick at the can for Governor Baker and those legislators that have been pushing to welcome a platform for years. Twenty states in the U.S. now offer legalized sports betting - Massachusetts shockingly isn't among them.

What makes the most recent attempt to get legal sports betting off the ground in Massachusetts is Governor Baker's intimate involvement this time around and the intense need to mitigate some of the COVID-related budgetary shortfalls. The current Massachusetts legislative session runs until December 31, giving legislators plenty of time to hammer something out.

Expect Massachusetts to come on board sooner than later with a legal sports betting platform of their own. What has long been overdue in the state of Massachusetts is on the verge of becoming a reality.