Teams Seek ‘Preferential Treatment’ With Massachusetts Sports Betting Licenses

The professional sports teams in Massachusetts have reached out to lawmakers, urging them to make necessary amendments to the legislation to ensure their involvement in both online and retail sports betting in the state. In a letter addressed to conference committee members responsible for shaping the sports betting legislation, the teams expressed their concerns and requested favorable modifications.

During a panel discussion at the National Council of Legislators from Gaming States conference in Boston, Dave Friedman, the executive vice president of legal and government affairs for the Boston Red Sox, brought up the topic of teams advocating for sports betting licensing opportunities in Massachusetts for the first time on Sunday.

Friedman explained that their focus is on a unique approach, similar to what states like Illinois, Arizona, Washington DC, Virginia, and Ohio have implemented. This approach involves granting licensing opportunities to professional teams or venues for sports betting, whether they are the license holder or have a partnership with an operator.

Friedman handed over a letter to Play MA, encompassing the exact language required by sports teams.

Details of MA sports betting letter from teams

The letter strongly recommends that the conference committee members embrace the Senate’s framework, but with certain modifications that prioritize Category 2 license applications linked to professional sports teams and venues.

The letter highlights the following key requests:

• There is provision for up to 10 Category 2 licenses, which authorizes the establishment of a sports betting facility as well as a single mobile platform.
• Elucidating the qualifications for the owner of a professional sports franchise or venue in Massachusetts.
• Mandating that the Massachusetts Gaming Commission prioritizes applications from owners of sports franchises or venues.
• Sports teams and venues seeking a license in partnership with a designated operator.

According to the letter:

We are asking for a preference that would mirror the successful model that is increasingly being adopted in states with multiple professional sports teams and venues.

The language being used is identical to that in Amendment 58, which was taken back during the Senate session. This amendment was proposed by a group of five state senators, one of whom is Senator Patrick O’Connor, a member of the conference committee.

As mentioned in the letter:

In a final sports betting bill, the measures we propose aim to motivate fans to shift away from illegal and unregulated markets. These measures also aim to safeguard the integrity of legal betting and establish a market structure that maximizes the significant value our organizations contribute to local communities and the commonwealth as a whole. In essence, our envisioned legal framework will incentivize and empower all major stakeholders, including our teams, to establish a strong and responsible sports betting market.

Who sent the MA sports betting letter and where?

Addressed to the six conference committee members, the letter is dated May 25th.

• Senators Michael Rodrigues, Eric Lesser, and O’Connor.
• Reps. Aaron Michlewitz, Jerald Parisella, and David Muradian

CC’d on the email were Gov. Charles Baker, Senate President Karen Spilka, and House Speaker Ron Mariano.

The letter was endorsed by Massachusetts’ five professional sports teams along with the PGA Tour.

• Charlie Jacobs, the Chief Executive Officer of the Boston Bruins in the National Hockey League (NHL).
• Rich Gotham serves as the president of the Boston Celtics in the National Basketball Association (NBA).
• Sam Kennedy is the president and CEO of the Boston Red Sox, a Major League Baseball (MLB) team.
• Jonathan Kraft serves as the president of the New England Patriots in the National Football League (NFL).
• Brian Bilello serves as the president of the New England Revolution in the MLS.
• PGA Tour’s chief legal officer is Leonard Brown Jr.

Economic development potential of team sportsbooks

Due to league regulations, teams request the presence of sportsbooks in close proximity to their stadiums and arenas.

If granted a license, Friedman stated that the Red Sox would assess the possibility of setting up a sportsbook within or in close proximity to Fenway Park, considering restaurants in the vicinity. However, it should be noted that Major League Baseball prohibits sportsbooks in areas of the stadium where tickets are required.

The letter praised the potential economic development that would arise from having sportsbooks located near their stadiums, as emphasized by team executives.

The presence of sportsbook operations near professional sports venues would enhance fan involvement, leading to increased engagement. Additionally, this model would generate extra funds for each local Massachusetts team (including the in-state professional golf event), which could be utilized to reinvest in the local community.

How request compares with current legislation

In April, the Senate approved a legislation on sports betting that included the allocation of six Category 2 licenses. These licenses mandated the establishment of one sportsbook facility in each of the four state regions.

According to Friedman, there is a possibility that the Red Sox could participate based on the current Senate language. However, the ambiguous wording of the legislation creates uncertainty in this regard. Moreover, the presence of four out of six sportsbook facilities in various regions would mean that not all professional sports teams in Massachusetts could secure one.

Category 1 licenses have been designated for Massachusetts casinos.

Under the provisions of the House bill, sports teams have the opportunity to collaborate with operators to obtain an online license, but they are not granted the option to establish physical sportsbooks.

Friedman mentioned that the teams initially advocated for guaranteed licenses in both the House and Senate bills. However, they recognized that lawmakers intended to uphold competitive bidding for the application process. As a result, the teams modified their request to receiving preference instead.

Friedman informed Play MA that our original suggestion was to include a greater degree of hardwiring a license exclusively to professional teams, similar to other states. However, since this idea is not included in either the Senate or House bill, we have come up with a more limited option. We believe this alternative aligns with the Senate bill and simply makes minor adjustments to it. In all practicality, we believe this option is feasible.

In order to successfully pass the issue this year, Massachusetts lawmakers have a deadline of July 31 to take action on sports betting legislation. Parisella has recently conveyed optimism about the conference committee being able to come to an agreement before the deadline.

Friedman explained, “I simply ask these individuals, if there are sportsbooks in Wrigley, National Stadium in DC, and Arizona, then why wouldn’t we have them here? Is there a valid reason against it? I believe there isn’t, and we should consider having a sportsbook adjacent to Fenway as well.”

Official league data requested in letter

The sports teams, in addition to expressing their licensing preference, requested the conference committee to incorporate the House language that permits a sports governing body to approach the Massachusetts Gaming Commission. This approach would compel operators to utilize official league data for settling tier 2 sports wagers.

According to the teams, the official league data provisions bear resemblance to the ones employed in Arizona, Illinois, Michigan, Tennessee, and Virginia.

The letter contends:

Operators must rely on real-time, accurate, and reliable data feeds to adequately protect consumers and maximize fan engagement in the modern mobile sports betting experience. This experience is defined by in-play betting, prop betting, and the ultimate combination of the two known as “micro-betting.” Micro-betting refers to betting on the outcome of events about to occur in real time, such as the next pitch in baseball or the next play in football.