Is Drive-Thru Sports Betting An Option For Massachusetts?

On August 18, the Massachusetts Gaming Commission organized a Q&A session regarding sports betting, inviting representatives from the state’s diverse gambling establishments. During the meeting, the commission collaborated with five license holders of casinos and racetracks to devise strategies for launching and implementing sports betting operations.

MA commission talks retail licenses

The signing of the sports betting law in Massachusetts took place earlier this month, but a specific launch date has not been determined yet. However, due to the inquiries from licensees and commissioners, it is anticipated that its debut will occur several months from now.

The licensees seemed prepared to talk about both retail and mobile options for sports betting, but the commission remained focused on retail. During a detailed discussion, several licensees expressed concerns about the codification of regulations, launch schedules, and the taxation of promotional play.

The Encore Boston Harbor surprised everyone with their unexpected announcement of potentially introducing a drive-up sports betting option within their parking garage.

The commission displayed a strong interest in understanding the collaboration of licensees with other jurisdictions that have authorized sports betting. On certain occasions, commissioners expressed reservations about certain proposals, such as betting in parking garages, and the anticipated actions of the licensees.

There were five licensees present.

• The casino located in Plainville, MA is called Plainridge Park Casino.
• MGM Springfield, located in Springfield, MA.
• Boston, MA is home to the magnificent Encore Boston Harbor.
• The Simulcast Betting Facility in Boston, MA is located at Suffolk Downs.
• The Simulcast Betting Facility in Raynhem, MA is known as Raynhem Park.

Licensees envision a portable retail sports-betting experience

Although mobile sports betting was not the main focus of the discussion, casino licensees expressed their interest in enhancing the mobility of retail sports betting. They proposed the idea of integrating sports-betting kiosks, allowing customers to engage in non-gaming entertainment while conveniently having access to betting options.

Encore presented the concept of creating portable kiosks that could be installed inside or near a ballroom during a Super Bowl watch party. This idea received positive feedback from other casino licensees who agreed that implementing kiosks would enhance sports betting beyond the confines of the sportsbook.

Licensees also voiced their interest in permitting in-game betting beyond the confines of sportsbooks.

The commissioners expressed their willingness to contemplate the suggestions, but they did not support Encore’s proposals for drive-up betting. Concerns were voiced regarding the security measures and the feasibility of sustaining this approach in the long run.

Licensees lobbied heavily against taxing promotional play

During the meeting, licensees did not provide a thorough explanation of the term “promo play” or elaborate on how it could be utilized in their establishment. Nonetheless, they emphasized the significance of promotional deals in attracting and retaining customers.

The statement from MGM’s representative was the most definitive.

“We fully support the exclusion of promotional play from tax reporting.”

Encore and Plainridge Park swiftly agreed, explaining that they needed to counterbalance the initial expenses associated with the introduction of sports betting.

The issue of taxing revenue from promotional bets or credit has ignited discussions in emerging sports-betting markets throughout the US. This topic gained attention as states such as Colorado and Virginia experienced lower-than-expected revenues, mainly due to operators categorizing substantial sums of money as “promo play revenue.”

The responsibility of answering the question was assigned to the commission by the MGC.

The crux of the matter lies in the policy at hand. The commission will be tasked with determining the methodology for calculating the revenue in question.

Karen Wells, the Executive Director of the Commission, emphasized the importance of educating both the public and licensees about the tradeoff between taxation and customer creation in the industry.

Encore Boston Harbor has proposed a possible solution known as a sunset provision, which suggests allowing operators to deduct promotional offers for a specific period, such as a year, while establishing their customer base. Once this initial period has passed, operators would then be subject to regular gaming revenue taxation.

In the realm of online betting, promotional incentives hold greater significance compared to retail sportsbooks. When situated at home, individuals may opt for one sportsbook over another based on a superior sign-up bonus. On the other hand, those who visit casinos prioritize seeking a captivating and immersive experience.

Responsible gaming is top of mind for licensees

The licensees uniformly acknowledged the implementation of responsible gaming measures within their establishments and acknowledged the seamless incorporation of sports betting into these practices. They observed that voluntary self-exclusion (VSE), which allows individuals to inform gambling facilities of their wish to be excluded from services, could be easily extended to cover sports betting.

Plainridge Park, a property owned by Penn National Gaming, has clarified that their other resorts enforce a policy of “banned from one, banned from all.” This means that if a gambler is placed on a Voluntary Self-Exclusion (VSE) list for one specific game or at any Penn property, they will be prohibited from gambling at all PENN properties.

During the meeting, the commission was inquired about the automatic carryover of VSE lists to sports betting upon its launch. They confirmed that they would discuss this matter in an upcoming meeting.

The commission closely monitored Plainridge Park due to a conflict in betting ages, where 18 is allowed for horse racing and 21 for sports betting. The commission expressed concern over Plainridge Park’s capability to effectively oversee sports betting activities in close proximity to the horse racetrack, stating their discomfort with the situation.

Commission considers ‘barrage’ of advertising

Commissioner Bradford Hill expressed concern about the overwhelming number of sports betting and casino advertisements, referring to them as a constant “barrage.” This issue was shared by all licensees and the commission. Hill vividly described the experience of commuters being bombarded with gambling ads for Rhode Island, New Hampshire, Connecticut, and Massachusetts on their daily route to work.

Wells presented a query to the individuals holding licenses.

Is the increasing prevalence of advertising enough to gain support from licensees for a universal limit on advertising?

The majority favored the notion of protecting the general public from overwhelming advertisements. However, Jacqui Krum, Senior Vice President of Encore Boston Harbor, and Commissioner Eileen O’Brien pointed out that non-local advertisers failed to uphold the same criteria as Massachusetts operators when it came to displaying responsible gaming messages on billboards.

Krum emphasized the importance of achieving equal footing with out-of-state competitors, directing his statement more towards the MA Department of Transportation, which has authority over billboard ads, rather than the MGC.

Hiring for sports betting could double size of staff for some

Suffolk Downs and Raynhem Park, both simulcast facilities, are expecting to hire 75 to 100 employees each, effectively doubling their current staff numbers. This surge in hiring is anticipated as they prepare to launch retail betting. The increased workforce will be required in various areas, including sports betting and ancillary industries such as food and beverage.

Although Hill expressed satisfaction with the anticipated employment figures, he remained doubtful. He highlighted the ongoing challenges in hiring experienced personnel across the nation and the shortage of dealers in Massachusetts casinos. Hill advised licensees to be cautious in their optimism, urging them not to expect to rapidly fill their staff as easily as they might anticipate.

The license holders also stated their intention to primarily recruit, if not exclusively, new employees from the local community.

Not much clarity on a launch date

North Grounsell, the General Manager of Plainridge Park, eloquently captured the remaining inquiries of the license holders.

We request the MGC to provide us with a launch date, followed by a prioritization of promulgating licensing rules and subsequently rules concerning technical standards.

The other licensees supported this statement by affirming their preparedness for both retail and mobile sports betting launches, provided they are given sufficient advance notice by the MGC.

O’Brien seemed a bit perplexed by the request, acknowledging that it would not be possible to provide a specific launch date going forward. This could be attributed to the fact that the MGC still had numerous tasks ahead, such as finalizing regulations, evaluating new license applicants, and addressing inquiries from existing license holders regarding both retail and mobile operations.

During the meeting, Chair Cathy Judd-Stein avoided addressing the possibility of launching mobile and retail sports betting simultaneously. By emphasizing retail, it indicated the likelihood of mobile being introduced at a later time.

Judd-Stein, on the other hand, recognized the concerns raised by the licensees regarding the timeframe and the importance of the MGC promptly providing them with a launch date to ensure their preparedness.

Doors are now open to potential sports betting licensees

The MGC has made an announcement on its website for all potential Category III licensees, stating their intention. The deadline for submission is Aug. 31. Additionally, the commission plans to hire a chief sports wagering commissioner and allocate one future roundtable for a responsible gaming discussion.

You can watch the complete meeting here.