Massachusetts sports betting back on the agenda in bill debate
House of Representatives set to vote on legislation that would legalize online sportsbooks in the state
Legalized sports betting in Massachusetts could be one step closer to reality by the end of this week as the House of Representatives is set to formally debate a bill that would establish the framework for both retail and online sportsbooks in the state.
The bill, H 506, was put forth by Rep. Dan Cahill before being redrafted by the Joint Committee on Economic Development and Emerging Technologies.
A second bill, S 269, was also approved by the committee, but the House bill appears to have more momentum behind it.
Under H 506, sports betting would be regulated by the Massachusetts Gaming Commission, with the state’s three casinos, in addition to horse racing tracks and OTBs, eligible to apply for licenses.
Each license would include up to three online skins, providing a pathway for Boston-based DraftKings and market leader FanDuel to gain licensure.
License applications would cost $100,00, and if approved, each operator would be required to pay an initial $5m license fee, and an additional $5m renewal fee after five years.
Online bets would be taxed at 15%, while in-person wagers would be subject to a 12.5% tax.
The bill allows for betting on college sports teams — a hotly-debated issue in other legalized states — but not individual college player props.
Similar to other states, bettors would need to be at least 21 and physically located in Massachusetts to access a mobile app.
While Massachusetts got to a similar stage in the legislative process in 2020 — the House passed a sports betting bill, but it couldn’t get through the Senate — the national landscape has continued to evolve, with more states either legalizing or launching sports betting.
That’s particularly true in the Northeast, where four of the five states bordering Massachusetts could be live as soon as early 2022, with New York and Connecticut set to join New Hampshire and Rhode Island.
Assuming the House passes H 506, the bill would then head to the Senate, which would likely come up with its own version that would need to be reconciled between the two chambers.