Conference Committee Formed For Massachusetts Sports Betting

After the House decided not to agree with the Senate’s changes on Tuesday, negotiations regarding sports betting in Massachusetts will now proceed to a conference committee.

As anticipated, the House swiftly rejected the Senate’s substitute language for H 3993 through a voice vote without any substantial discussion.

There is a deadline of July 31 for the chambers to resolve significant discrepancies in language concerning sports betting, particularly in relation to wagering on college sports, tax rates, licensees/online skins, and advertising regulations.

House sports betting conferees named

Three members of the House of Representatives will be joined by three Senators to serve on the conference committee.

Rep. Jerry Parisella was appointed as the chair of the conference committee by The House. Previously, Parisella led the Economic Development and Emerging Technologies Committee, which focused on developing sports betting legislation.

Reps. Aaron Michlewitz and David Muradian, who will be joining Parisella, boast notable positions. Michlewitz serves as the chair of the Ways and Means Committee.

In 2020, Michlewitz chaired a conference committee on an economic development bill, showcasing his prior involvement in a similar committee related to sports betting. While the House included provisions for sports wagering in their version, the Senate did not share the same stance. Ultimately, the conference committee decided to remove the language regarding sports betting.

Muradian, a member of the Republican party, currently assumes the role of the minority-party representative within the committee. Prior to this, he held the position of ranking member in the Economic Development and Emerging Technologies Committee, where he actively worked on the same issue.

Muradian informed Play MA that they are prepared to engage in sincere negotiations and ideally, achieve a beneficial outcome for all residents. They emphasized the importance of passing any bill that necessitates a roll-call vote before the end of July. Consequently, this serves as a deadline for them, and they must also complete the conference committee matters by then.

The Senate must appoint conferees before the conference committee can commence its work.

It is highly likely that Sen. Eric Lesser will assume the role of leading the Senate conferees. Previously, Lesser served as the Senate chair of the Economic Development and Emerging Technologies Committee, working alongside Parisella. He was responsible for drafting the sports betting language that was successfully passed by the Senate.

In addition, Lesser served as the chair of the economic development conference committee, which omitted sports betting from the conference report.

Stark differences between House and Senate language

Once the conference committee successfully reaches a consensus on a conference report, it is highly likely that both chambers will approve the report and progress H 3993 to Gov. Charlie Baker’s desk.

In various states, all preceding conference committees established for sports betting have reached an agreement on the bill’s language.

Despite the numerous significant differences, Massachusetts might possibly become the first state to fail in generating a positive conference report on sports betting.

Key differences include:

• Collegiate sports betting is not included in the Senate bill.
• The Senate bill suggests significantly higher tax rates compared to the House. Specifically, the Senate proposes a tax rate of 35% on mobile bets and 20% on in-person wagers. On the other hand, the House suggests lower rates of 15% and 12.5% for the same types of bets, respectively.
• In the Senate bill, there are provisions for nine sports betting licenses, with one designated for each casino and six licenses specifically for untethered mobile operators. On the other hand, the House bill allows every casino to obtain three skins, while each horse racetrack is granted one license. Moreover, the House bill permits unlimited untethered mobile licenses. Notably, the Senate bill does not include any provisions for racetracks.
• Credit card deposits are prohibited in the Senate’s language.
• During all sporting events aired in the state, TV stations were forbidden by the Senate to broadcast sports betting advertisements.

Where committee members stand on college betting

Parisella and Muradian have consistently emphasized the importance of Massachusetts permitting betting on college sports in previous discussions with Play MA.

In an email last week, Parisella highlighted this as one of the major contrasts present in the bills. He pointed out that the House version explicitly prohibits proposition bets involving college athletes.

Muradian highlighted that the inclusion of college betting is necessary to encourage Massachusetts residents to transition to regulated apps.

According to Muradian, it is logical to introduce collegiate gaming. He argues that very few individuals would transition between an unregulated industry and a regulated one repeatedly. Those who wish to gamble on college sports would likely remain in the unregulated market.

In order to ensure the security and integrity of local athletes, the House bill includes a provision that compensates in-state sports facilities hosting college or professional games with 1% of the total amount wagered on those games.

Parisella expressed hope that the provided assistance would address the concerns of individuals and equip them with the appropriate resources to enhance security measures or uphold the authenticity of games. He mentioned that he was not aware of significant issues in states where college betting exists, but emphasized that this additional measure would further support both college and professional teams in strengthening security protocols. Parisella also noted that colleges are adapting to recent Name, Image, and Likeness (NIL) decisions, and expressed a desire for transparency in college sports.