Lawmakers Go All Night To Pass Massachusetts Sports Betting Bill

Early Monday morning, Massachusetts lawmakers worked overtime to finalize sports betting legislation.

After a long-awaited decision, sports betting will finally be available in one of the nation’s most passionate sports-loving regions. The recently passed bill legalizes sports betting in Massachusetts for both professional and college sports, although it explicitly prohibits wagering on local colleges.

Residents of Massachusetts can anticipate a thriving market offering a choice of up to 15 mobile apps for sports wagering.

After working through the night, a conference committee successfully reached an agreement on the disparities between the House and Senate sports betting proposals. The House, through an informal voice vote at 6 a.m., accepted the conference report. Shortly after at 9 a.m., the Senate voted with an overwhelming majority of 36-4 in favor of accepting the conference report.

Senator Michael Rodrigues, the chair of the Senate conference committee, elucidated the details of the bill during his speech on the Senate floor.

The conference report presented to us aims to legalize, regulate, and tax sports wagering in our state, effectively eliminating the black market. However, it explicitly prohibits betting on Massachusetts college teams. Additionally, it establishes a tax structure that is fair and promotes competition, while also including robust measures for consumer protection. Similar to our casino gaming bill, this report has the potential to serve as a blueprint for implementing online sports wagering nationwide.

The formal legislative session in Massachusetts concluded on Sunday, signifying its final day. However, any bill proposed after July 31 could face obstruction from a single opposing member. To circumvent this issue, lawmakers successfully extended the day by an additional hour on ten separate occasions.

House Speaker Ron Mariano tweeted his pride in announcing that the Sports Betting Conference Committee has successfully reached a consensus on legislation that will legalize betting on professional and collegiate sports in Massachusetts. This development will bring forth significant economic advantages derived from the establishment of a lawful sports betting industry in MA.

Long run for MA sports betting efforts

Massachusetts has been discussing the issue of legalizing sports betting since 2018, making its arrival long overdue. However, neighboring states such as New York, Connecticut, Rhode Island, and New Hampshire have already passed sports betting bills in the meantime. Massachusetts, unfortunately, has been unable to join in due to resistance in the Senate.

In July 2021, Massachusetts sports betting legislation received overwhelming support as it was passed by the House with a vote of 156-3. Moving into the second year of a two-year session, H 3993 continued to progress, and in April, the Senate finally approved the bill.

In May, a conference committee was established with three members from each chamber, which laid the groundwork for the following discussions. Senators Michael Rodrigues, Eric Lesser, and Patrick O’Connor were chosen as representatives from the Senate, while Representatives Aaron Michlewitz, Jerald Parisella, and David Muradian represented the House.

Muradian told Play MA:

Massachusetts has endured the loss of millions in revenue for an extended period due to neighboring states legalizing sports betting. Despite the overwhelming support to allow this form of gambling, it took considerable effort to finalize the specifics and come to an agreement. However, the outcome is an exceptional legislation that ensures the safety of athletes and consumers, while simultaneously injecting our economy with a thrilling new industry.

Typically, when a bill is approved by both legislative chambers, they can typically come to a consensus on the final wording. In the past, during five instances when states convened conference committees on sports betting, they have always been successful in generating a conference report.

Until the final day, there was a genuine possibility of Massachusetts House and Senate reaching an agreement on sports betting, despite the noticeable disparities in their language. It is worth noting that prior to Sunday, the conference committee had officially convened just once, and that was on June 2.

Most language proposals were exchanged through email, and leaders from both sides of the legislature expressed doubt regarding the successful completion of sports betting.

How lawmakers resolved MA sports betting differences

The disparities between the sports betting bills in the House and Senate, as well as the resolution reached by the conference committee, are outlined below.

• The House supported the idea of betting on college sports, while the Senate did not. The proposed solution was to permit betting on college sports, except for in-state college teams, unless they were participating in a collegiate tournament.
• The House did not impose any restrictions on untethered mobile licenses, while the Senate permitted a maximum of nine licenses. These licenses would be distributed as follows: one license for each of the three casinos and six licenses for other physical properties. As a solution, it is proposed to allocate two licenses per casino, one license per two simulcast facilities, and seven licenses for untethered mobile skins, resulting in a total of 15 licenses.
• The Senate’s proposed legislation introduced a 35% tax rate on mobile bets, while the House suggested a 15% tax rate. A potential solution was reached by setting the tax rate at 20%.
• The Senate imposed a 20% tax on in-person wagers, while the House set it at 12.5%. The proposed solution is to have a 15% retail tax.
• The House granted permission to use credit cards for funding sports betting accounts, whereas the Senate prohibited such usage. The proposed solution is to disallow the use of credit cards for sports wagering.
• The Senate has enforced a ban on sports betting advertisements during sporting events. However, the proposed solution is to incorporate the House’s suggestion, which permits such ads during sports broadcasts. Additionally, the Massachusetts Gaming Commission will be instructed to prohibit any advertising that is believed to directly target individuals under the age of 21.

Who can participate in Massachusetts sports betting?

According to the Massachusetts sports betting legislation, the following five gaming properties are permitted to operate physical sportsbooks:

• MGM Springfield
• Encore Boston Harbor
• Plainridge Park
• Suffolk Downs
• Raynham Park

Each of the three casinos has the option to provide two mobile sports betting apps, while the two simulcast wagering facilities are limited to offering only one mobile sports betting app.

Seven more online sportsbooks can operate without any physical connections.

Additional details of MA sports wagering bill

The conference committee report provides further essential details:

• Renewable every five years, the licensing fee amounts to $5 million.
• The Public Health Trust Fund receives an extra payment of $1 million from mobile operators.
• The responsibility of overseeing sports betting is assigned to the Massachusetts Gaming Commission.
• In Massachusetts, individuals must be at least 21 years old to place bets on sports, as per the established minimum age requirement.
• Allows wagering on esports;
• Defines collegiate tournaments as events with four or more teams.
• In-game wagers necessitate the utilization of official league data.
• The Massachusetts Gaming Commission is tasked with conducting a study to assess the possibility of permitting sports betting kiosks at restaurants and bars in Massachusetts. The study is required to be finished by December 31st.
• The Massachusetts Gaming Commission is assigned the responsibility of carrying out a study focused on the involvement of businesses owned by minorities, women, and veterans. The Commission is required to finalize the study no later than December 31st.

Where MA sports wagering revenue will go

Massachusetts sports betting revenue is projected to be approximately $50 million annually based on revenue estimates.

This is how the legislation allocates the income generated from sports betting:

• 45% allocated to the general fund;
• 27.5% will be allocated to the Gaming Local Aid Fund.
• 17.5% of the funds are allocated to the Workforce Investment Trust Fund, which aims to enhance employment prospects and support low-income communities, vulnerable youth, and young adults.
• The Public Health Trust Fund receives a 9% allocation.
• The Youth Development and Achievement Fund receives 1% of the total funds. This money is utilized to offer financial aid to students who are pursuing higher education, support after-school programs, and provide matching grants to elementary and secondary youth sports, organizations, and clubs.

Adjusted gross wagering receipts can have federal excise tax deducted by licensees.

When sports betting could launch in Massachusetts

After the Legislature successfully reached a consensus on sports betting, the bill is now set to be presented to Gov. Charlie Baker. The governor, who has consistently shown his support for this cause, had specifically requested lawmakers to forward him a sports betting bill. Baker is granted a period of 10 days to take action on the legislation.

“In a statement, Lesser expressed that once approved by the governor, this fresh legislation will pave the way for a burgeoning industry in our Commonwealth, leading to job opportunities and economic advancement. Furthermore, it will effectively shield consumers and athletes with unparalleled safeguards, preserving the integrity of sports.”

Before joining the conference committee, Lesser spent four years as the Senate chair of the Economic Development and Emerging Technologies Committee, where he spearheaded efforts on sports betting legislation.

According to Muradian, lawmakers plan to add an emergency preamble to enable the law to become effective immediately after it is signed. This eliminates the usual 90-day waiting period and speeds up the timeline for the launch of sports betting in MA.

According to Muradian, he believes that the Massachusetts Gaming Commission will swiftly finalize rules, regulations, and issue licenses. He anticipates that sports betting in Massachusetts could be operational by the midway point of the NFL season.

What’s next for Mass. sports betting?

The next Massachusetts Gaming Commission meeting, tentatively planned for Thursday, may provide answers to additional launch inquiries.

Tom Mills, spokesperson for the Massachusetts Gaming Commission (MGC), wrote in an email statement to Play MA on Monday:

The Massachusetts Gaming Commission (MGC) is currently examining the sports wagering bill recently approved by the Legislature. This bill is now awaiting the Governor’s decision. In the past few years, we have closely observed legislation designating the MGC as the regulator for sports betting in Massachusetts. Our staff has diligently prepared to act promptly if this bill becomes law. We will commence discussions on this legislation during our upcoming public meeting, scheduled for this Thursday. All information regarding these meetings will be accessible on the MGC website.