Why Massachusetts Sports Teams Aren’t Getting Sports Betting Licenses

This week, Massachusetts legislators successfully pleased the majority of stakeholders with their final sports betting offering.

The MA sports betting legislation is a dream come true for casinos, horse racing interests, and online sportsbooks.

Nevertheless, the professional sports teams in Massachusetts were content but not fully gratified with the bill that was recently enacted into law.

In an interview with Play MA, Rep. Jerald Parisella and Sen. Patrick O’Connor, both members of the sports betting conference committee, explained their rationale for not awarding licensing opportunities to sports teams.

Sports teams lack structure for sports betting

A letter was sent to the conference committee by the executives of five professional sports teams in Massachusetts and the PGA Tour.

In their letter, they urged lawmakers to grant 10 licenses for Category 2, allowing the establishment of sports wagering facilities, alongside one mobile platform. Additionally, they requested the Massachusetts Gaming Commission to prioritize professional sports teams when allocating Category 2 licenses.

Sports betting licenses are permitted in states like Ohio, Arizona, and Virginia.

However, the conference committee decided to restrict Category 2 licenses to just two horse racing betting facilities that already exist. They also made two more licenses available for any potential future horse racetrack projects.

O’Connor remarked that the comprehensive legislation reserves three licenses for casinos, a maximum of four licenses for racetracks, and seven licenses for untethered mobile operations.

“We had to establish a limit on licenses eventually. Although I would have preferred to witness a greater number of licenses being granted, we had to reach an agreement. Prioritizing our casinos seemed logical given the circumstances. Additionally, the inclusion of the two racetracks in the House bill was of significant importance. Considering the existing framework they have in place, we believed they would be suitable recipients.”

According to Parisella, the Senate legislation offered them the most promising opportunity for direct involvement by providing six Category 2 licenses available for application by sports teams. However, the conference committee opted for a larger portion of the House bill’s framework.

The bill that was approved in the House is largely identical to what was ultimately passed in the conference committee. We believed that casinos and racetracks had already undergone thorough evaluation for retail operations, hence they could likely commence their activities earlier than the teams.

Sports teams still get opportunities from sports betting

According to a previous statement by David Friedman, the executive VP of the Red Sox, sports teams expressed satisfaction with the passage of sports betting in Massachusetts.

Although the bill does not offer licenses, it does offer possibilities to generate revenue through sponsorships in sports betting.

O’Connor pointed out that operators are required by the legislation to utilize official league data for in-game wagers.

“Data acquisition was of utmost importance to the leagues, who actively sought opportunities for sports teams to form strategic alliances with digital skins and even physical stores, should any team wish to explore such avenues.”

MA lawmakers could add licenses for sports teams

Both Parisella and O’Connor have indicated that the possibility of revisiting licensing for sports teams in future legislation remains open. Parisella expressed that

In due course, we may consider exploring this option. However, for now, we believe that adopting this approach is the most suitable decision.

O’Connor expressed his belief that in the absence of growth in the Massachusetts horse racing industry, the legislature might consider allocating the unused licenses to sports teams. Additionally, the bill includes provisions for conducting a study on the feasibility of installing sports betting kiosks at bars and restaurants near stadiums. Despite these potential changes, O’Connor maintains a positive outlook for the future.

In my opinion, sports teams could potentially become involved at some point. We have kept a few licenses open for horse racetracks in Massachusetts in case the industry makes a comeback. However, if that does not happen within a few years, we might reconsider and allocate those licenses to sports teams instead.