Massachusetts Gov. Charlie Baker filed legislation that would authorize regulated sports betting in the state, allowing for both in-person and online betting.
Baker filed the bill on Thursday, just ahead of a deadline for introducing legislation to be considered during the 2019 legislative session.
Bill Allows For Independent Online Operators
The bill, known as “An Act to Establish Sports Wagering in the Commonwealth,†would allow casinos and slots parlors in the state to establish sportsbooks. That includes the already operational MGM Springfield casino and the Plainridge Park slots facility, as well as the coming Encore Boston Harbor and a potential casino in southeastern Massachusetts. It also allows for mobile sports betting throughout the state.
In Baker’s vision for sports betting, sportsbooks at brick-and-mortar facilities would be taxed 10 percent on their revenues, while online sports betting would be subjected to a 12.5 percent tax rate. According to Legal Sports Report, the bill won’t require online operators to be attached to one of the casinos, meaning that a wider range of companies may be able to offer betting apps in the state.
That aspect of the bill was referenced in a statement reacting to the bill by DraftKings director of global public affairs James Chisholm.
“Legal, regulated mobile sports betting provides the best mechanism to not only protect consumers, but to eliminate illegal offshore gambling, ensure game integrity, generate new revenue for the Commonwealth and fuel the growth of Massachusetts’ sports-tech sector,†Chisholm said in a statement. “We’re hopeful Massachusetts will seize the opportunity to establish a new national model of directly licensing mobile operators this year.â€
Betting Restricted to Professional Sports
Operators will also be happy with the fact that the bill doesn’t include integrity fees or other royalties. The licensing fee has been set at a minimum of $500,000 for a five-year term, with a $100,000 application fee.
There is one area in which Baker’s bill is restrictive. Betting on amateur sports, including college sports, is not authorized under the legislation, nor is gambling on esports. Still, Baker’s administration believes that the state could earn as much as $35 million in revenue in the first fiscal year under the system he is proposing.
“Our legislation puts forth a series of commonsense proposals to ensure potential licensees are thoroughly vetted and safeguards are in place to protect against problem gambling and illegal activity,†the Republican governor said in a statement.
Several Bills Could Receive Consideration
It’s unclear how much support the governor’s bill would have in the state legislature, or if it would even serve as a model for building sports betting legislation in Massachusetts. Two other bills were introduced by state senators on Wednesday that would also authorize sports betting, with various tax and fees structures.
In addition, Bruce Tarr, the minority leader in the Massachusetts Senate, proposed a bill that would create an 11-member commission to study the issue of legal sports betting. That commission would then have 180 days to issue a report to the legislature, after which lawmakers could use those findings to craft a final bill.
