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Although the final MA sports betting legislation did not fulfill all the desires of Massachusetts sports teams, the MLB’s Boston Red Sox express their satisfaction with the arrival of sports betting in the Commonwealth.
Boston Red Sox pleased with sports betting progress
Until late in the final day of the formal legislative session, team representatives of the Red Sox were uncertain about the fate of the bill, according to Dave Friedman, the executive vice president of legal and government affairs for the organization.
A conference committee of lawmakers burned the midnight oil from Sunday to Monday, diligently ironing out discrepancies surrounding Massachusetts sports betting. With their hard work completed, the bill now awaits the anticipated signature from Governor Charlie Baker.
Friedman said:
We are extremely delighted with the successful passing of the bill. We strongly believe that it is an outstanding piece of legislation. After investing four long years in discussions and collaborating with lawmakers, today is a significant day as we finally accomplish this feat. While we would have preferred the opportunity to incorporate an in-person sportsbook at or near our venues, we understand that the majority of sports betting activities occur through mobile devices. Consequently, we are pleased that a thriving industry for sports wagering will be established here.
Lawmakers reject team request for licenses
Play MA recently received a letter from Friedman, which was originally sent by Massachusetts professional sports teams. In the letter, the teams expressed their desire to be directly involved in Massachusetts sports betting and requested the conference committee to consider their participation.
The teams requested that legislators authorize a combined total of 10 Category 2 licenses, which would enable operators to have both an in-person sportsbook and a mobile skin. Additionally, they requested that the bill direct the Massachusetts Gaming Commission to prioritize applications from sports teams. In this situation, sports teams or venues would apply for licenses alongside a designated operator.
The proposed model mirrored Ohio’s approach, as it included plans for the Cleveland Guardians and Cincinnati Reds to host on-site sportsbooks and collaborate with online operators as partners.
However, Massachusetts legislators ultimately restricted the issuance of Category 2 licenses to just two horse racing simulcast facilities. Apart from these two licenses, three Massachusetts casinos are eligible to apply for Category 1 licenses. Furthermore, seven untethered mobile licenses will also be up for grabs.
Friedman expressed his confusion regarding the prioritization of two horse racing simulcast facilities, which were granted in-person sportsbooks and a mobile skin, while sports teams were overlooked.
“We personally presented our argument for teams to have retail and mobile sportsbooks. The legislature was making efforts to address numerous concerns raised by shareholders. Ultimately, we believe they made their utmost effort.”
Sports teams will still have opportunities
The Red Sox had expressed their desire to establish a physical sportsbook in a restaurant located next to Fenway Park.
Since it is no longer possible, Massachusetts sports teams will explore alternative methods to capitalize on the advantages of legalized sports betting.
Friedman said:
Once the bill is signed, all sports teams will have the chance to engage with operators and establish partnerships or sponsorships related to sports betting. Our main motivation for endorsing sports betting is to enhance fan involvement. Additionally, we recognize the potential for generating revenue through these opportunities, which we will surely explore.
Despite not being able to run a full-scale sportsbook, the Red Sox have the opportunity to collaborate with a partner and establish a sports betting lounge in close proximity to the stadium. This lounge would provide individuals with the space to both watch games and engage in betting activities. The only distinction lies in the fact that wagers would be placed via mobile devices rather than at a physical betting counter.
Included in the bill is a provision for investigating the feasibility of introducing sports betting kiosks in Massachusetts restaurants and bars. Should it be approved, these kiosks could subsequently be implemented in lounges as well.
Advertising prohibition not included in bill
The Red Sox are also happy with the final MA sports betting product because it does not contain restrictive advertising language.
Initially, the Senate language included a clause that forbade broadcasters from airing advertisements related to sports wagering during games. Nonetheless, a letter from sports teams was sent to conference committee members requesting them to dismiss this prohibition. Remarkably, the committee members agreed and the ban was overturned.
Friedman voiced his apprehensions regarding the potential adverse impact on broadcasting contracts for the team if such an advertising ban were to be implemented.
Our concern revolved around the restrictions placed on advertising. While Major League Baseball and other leagues already have regulations in place for ads, some provisions concerning advertisements were deemed excessive and therefore excluded from the bill.
Who will the Red Sox partner with for MA sports betting?
Currently, the Red Sox have established partnerships with DraftKings, a Boston-based company, for daily fantasy sports, and with MGM Resorts for casino activities. Both companies have their prominent signage displayed at Fenway Park.
Friedman suggests that the translation of those relationships into sports betting remains unclear.
“I am unable to predict which relationships and deals will materialize as it is too early to tell. However, we believe DraftKings is an excellent company and a valuable sponsor for us in the daily fantasy field.”
Bill addresses integrity concerns of teams & leagues
Teams were particularly satisfied with how the Massachusetts sports betting legislation addressed their concerns about the integrity of their games, according to Friedman.
In his presentation, he emphasized several regulation provisions. These included the stipulation for official league data, the inclusion of a clause permitting operators to share anonymous data with league investigators, and the provision granting leagues the authority to request the removal of specific prop bets from the Massachusetts Gaming Commission.
Friedman commented:
Since the inception of this conversation regarding sports betting, the primary concern for leagues and teams has always been maintaining integrity. In my opinion, this bill sets a perfect example for ensuring that sports betting upholds the integrity of our games.
While it is still premature to make a definitive conclusion, the current advancements strongly indicate that regulators may greatly excel in implementing sports betting in Massachusetts.
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