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In recent years, the state House has made repeated attempts to legalize sports betting in Massachusetts through the passage of multiple bills. However, until the previous week, all of these bills have failed to gain traction upon reaching the Senate.
Bill S.269, an amended version of House bill H. 3993, which received a resounding 156-3 vote in favor last July, made significant strides in progress on Friday as it was advanced by the Massachusetts Senate Ways and Means Committee.
What was the holdup on Massachusetts sports betting bills in the Senate?
Supporters have become increasingly frustrated as multiple sports betting bills successfully cleared the House only to encounter a wall of silence in the Senate.
Local businesses in Massachusetts are advocating for the legalization of sports wagering due to the Senate’s lack of action. Additionally, lawmakers who back the legislation have vowed to exert pressure on the Senate to address the Massachusetts sports betting bills.
The inclusion of college sports in wagering has been a major obstacle preventing the Senate from passing the numerous bills swiftly approved by the House.
In 2020, top Massachusetts university athletic directors and presidents strongly advocated for the exclusion of college sports from any sports wagering legislation enacted in the state.
The university officials expressed their worry that college betting would present “unwanted and inappropriate hazards to student-athletes, their fellow campus members, and the overall integrity and character of colleges and universities in the Commonwealth.”
House Speaker Ron Mariano, on the other hand, has suggested that excluding college sports from legislation hampers the overall objective of legalizing sports betting.
Last summer, he expressed his struggle in justifying the effort required to exclude arguably the primary catalyst for gambling in the commonwealth.
According to Mariano, if college sports wagering were to be prohibited, it would result in a substantial decrease in the state’s revenue generated from sports betting.
According to his estimation, college sports would contribute approximately $60 million to the annual revenue. In the absence of college sports, the revenue would decrease to a maximum of $35 million per year.
However, the Senate emphasizes that they will oppose any legislation related to sports wagering that allows legal betting on college sports.
Senate and House bills have major differences
One key distinction between the advanced Senate bill and the initial House bill regarding sports betting is the anticipated prohibition of wagering on college sports.
There are other notable distinctions such as higher tax rates and limitations on the total number of licenses that can be issued within the state.
The House proposed bill proposes a 15% tax on mobile sportsbooks and a 12.5% tax on retail sportsbooks. However, the Senate bill suggests significantly higher tax rates of 35% for mobile sportsbooks and 20% for retail sportsbooks.
When compared to other states that have legal sports betting, the Senate’s tax rates are notably higher, placing them at the upper end of the spectrum.
The House bill permits a total of 11 mobile sportsbook licenses, which must be operated within one of the three Massachusetts casinos. However, the Senate bill reduced this number to 9 licenses and did not include any provision mandating operation through a casino.
Another distinction between the two bills lies in the acceptance of credit cards for gambling transactions. While the House bill initially permitted the use of credit cards, the Senate bill prohibited their utilization.
The act of disallowing the use of credit cards for sports betting serves as a safety measure to prevent a rise in problem gambling caused by the widespread availability of mobile wagering.
Senator Eric Lesser, a vocal advocate for legalized sports betting in Massachusetts, acknowledges the prudence of incorporating a credit card usage ban into the legislation.
He expressed his concerns stating, “It’s worrisome for our caucus that someone could accumulate substantial credit card debts from the comfort of their couch, especially if they have addiction or gambling issues.”
Massachusetts state legislature to debate Senate sports betting bill soon
The journey towards legalizing sports betting has been a challenging and prolonged one, spanning multiple years. Nonetheless, the recent approval of the Senate bill by the committee brings a glimmer of hope for its eventual realization.
Despite this, the disparities between the two bills may cause tension among lawmakers during the current legislative season. This week, the state legislature is engaging in discussions over the new Senate bill.
Massachusetts sports betting has the potential to commence in January 2025 if a final bill is passed prior to the conclusion of the general session on July 31.
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