Gov. Baker Says Massachusetts Sports Betting Must Wait

If Gov. Charlie Baker has any say in the matter, it is unlikely that Massachusetts will legalize sports betting before 2019.

All 50 states were granted the authority to legalize sports betting within their boundaries following the Supreme Court’s decision on May 14, which repealed the federal prohibition on this activity.

Delaware and New Jersey made history in early June as the first states, excluding Nevada, to introduce comprehensive and officially regulated sports betting.

Several other states are also ready to follow suit, having already passed sports betting legislation that is awaiting a change in federal law.

Massachusetts does not fall into this category, and it seems that state legislators are not feeling a sense of urgency to enact sports betting laws.

Too much on the state’s plate

According to Baker, the Boston Herald was informed that state legislators already have a packed agenda, making it unlikely for them to address sports betting at present.

I believe that it would be extremely challenging for us to make significant progress within 40 days, considering the multitude of other pressing matters that require the Legislature’s attention. However, I am aware that we are actively engaging with various professional sports organizations and experts in this field. I have complete confidence that the Legislature will also prioritize these consultations.

Baker mentioned that legislators are expected to commence drafting a sports betting bill in the upcoming months, with the aim of addressing it during the initial legislative session in 2019.

I think it’s important that we address this matter in January during the upcoming session. It’s evident that every state will need to thoroughly examine this issue, so it’s necessary for us to discuss it if we’re available.

Work underway on 2019 betting bill

State Representative Joseph Wagner, the chair of the Committee on Economic Development and Emerging Technologies, is anticipated to take charge of the matter in the House. He has openly stated that efforts have already been initiated towards drafting a sports betting bill.

House Speaker Robert A. DeLeo has already stated that it will not be addressed before the conclusion of the current legislative session next month.

However, according to James Chisholm, a representative from DraftKings, a daily fantasy sports company based in Boston, it is logical to work on the bill now. Additionally, even if the bill is not going to be addressed immediately, DraftKings Sportsbook MA is available to offer assistance.

There is no need to postpone the work until next year if it won’t be approved by the end of this session. However, it makes sense to wait until next July to pass something. In the meantime, there are plenty of tasks that can be undertaken now to prepare Massachusetts accordingly.

DFS and sports betting

In 2016, a law was enacted in Massachusetts to oversee and control daily fantasy sports. Presently, fantasy sports operators are not required to pay any distinct taxes or charges to the state. Nonetheless, this agreement is set to conclude later this year, prompting the state and DFS operators to engage in negotiations for a revised agreement.

Meanwhile, DraftKings and FanDuel Sportsbook, the leading contenders in the daily fantasy sports sector, have successfully entered New Jersey’s emerging sports betting market. Interestingly, DraftKings seems to be eyeing Massachusetts as its next destination for sports betting.

According to reports from The Boston Herald, lobbyists from prominent sports leagues such as the NBA, MLB, and PGA have arrived at the Massachusetts State House on Beacon Hill.

Major sports leagues want a piece

Lobbyist Steven Panagiotakos aims to persuade state lawmakers to allocate a portion of the Massachusetts sports betting revenue to the leagues.

The leagues are seeking a royalty fee in exchange for their games being used for betting purposes. They are also requesting access to their own data, particularly the official league data. Consequently, they anticipate an increase in pressure to allocate additional resources towards game oversight.

Integrity fees, which major sports leagues have been advocating for nationwide, have faced limited success thus far. Nevada has never implemented such fees, and the recent launch of sports betting operations in Delaware and New Jersey also occurred without incorporating them.

In 2011, the Massachusetts legislature approved the Expanded Gaming Act, which granted permission to Penn National Gaming to establish the state’s inaugural casino in 2015.

Furthermore, the entry of two competitors into the market was made possible. On August 24, 2018, the highly anticipated $950 million MGM Springfield is set to open its doors. Additionally, the much-awaited $2.4 billion Encore Boston Harbor (formerly Wynn Boston Harbor) is scheduled to open in 2019.

All three representatives have expressed their desire for the state to legalize sports betting and are also open to the possibility of allowing sportsbooks at the casinos.