Unlike The Neighbors, Massachusetts Is Taking It’s Time With Sports Betting

Will the recent Supreme Court decision to overturn the federal ban on sports gambling bring legal sports betting to Massachusetts?

It doesn’t happen immediately, at least not initially.

Anticipating that the Supreme Court decision would grant all 50 states the authority to legalize sports betting within their borders, Massachusetts did not join the small group of states that passed sports betting legislation contingent upon a change in federal law.

Massachusetts legislators are currently not rushing to establish state regulations for sports betting, nor are they striving to be among the pioneers in legalizing sports betting outside of Nevada.

Similar to how it has approached nearly all other gambling matters, the Massachusetts legislature seems to be proceeding cautiously and deliberate with this particular issue.

Casino gambling in Massachusetts

Until recently, Massachusetts has not been part of the commercial casino construction boom that most of the rest of the country has experienced since the 1990s.

The state initiated its involvement in the commercial casino sector by enacting the Expanded Gaming Act in 2011. Subsequently, Penn National Gaming was granted permission to establish the Plainridge Park Casino slot parlor, making it the inaugural casino in the state, which commenced operations in June 2015.

In addition, it cleared the path for the commencement of construction on Massachusetts’ initial two commercial casino resorts. The MGM Springfield, with an estimated cost of $950 million, is expected to open sometime this year. Additionally, the Encore Boston Harbor, previously known as Wynn Boston Harbor, is slated to open in 2019 with a budget of $2.4 billion.

There is a growing interest from various Native American tribes based in Massachusetts to venture into the local casino industry. Among them, the Mashpee Wampanoag Tribe is currently constructing the First Light Resort & Casino in Taunton, with a budget of $1 billion, and anticipates its grand opening this summer.

Massachusetts is finally embracing casino gambling, but will the recent Supreme Court decision pave the way for sports betting as well?

Massachusetts sports betting legislation

Massachusetts lawmakers are not currently examining a sports betting bill. Instead, they are contemplating a bill that would establish a specialized commission to delve deeper into the matter. Nonetheless, it appears improbable that the state will reach the stage of authorizing legal sports betting in the near future, especially not before the inauguration of at least one of the two upcoming commercial casino resorts.

Nevertheless, legislators continue to prioritize the matter of sports betting, as evidenced by the issuance of a white paper by Massachusetts gaming regulators on March 1. The document thoroughly explores the potential for sports betting within the state.

The document serves as a comprehensive guide for the legislature in case they choose to address the issue at hand.

The white paper suggests that the state should not expect a significant financial gain from sports betting. Nevertheless, regulators view it as a potential source of intriguing prospects. Some of these opportunities include:

• Transferring current sports betting activities from illicit and unregulated channels to a lawful and supervised system.
• Collecting a portion of tax revenues generated by the activity.
• The objective is to enhance economic opportunities for local sports betting providers and industries associated with it.

Regulators emphasize that legal sports betting in Massachusetts must meet or exceed the standards set by illegal and offshore bookmakers, as stated in the document.

This implies the opportunity for betting on mobile devices, along with the presence of comparable bets already available in the illegal market, such as in-game betting.

In addition, the white paper emphasizes that Plainridge Park, Encore Boston Harbor, and MGM Springfield have expressed their desire for the state to legalize sports betting. Furthermore, if the appropriate legislation is implemented, each of these casinos would contemplate the possibility of establishing sportsbooks on their premises.

Fantasy sports in Massachusetts

Fantasy sports operators have consistently argued that it does not qualify as gambling, yet it remains the sole legal form of sports betting in Massachusetts.

In 2016, a bill was approved by Massachusetts lawmakers, giving the green light to paid-entry fantasy sports while also implementing regulations. Currently, fantasy sports operators are not obliged to pay any taxes or fees to the state. Nonetheless, this arrangement may undergo modifications once the agreement reaches its expiration date later this year.

Massachusetts hasn’t been a major topic of discussion for them. Nonetheless, DraftKings, the leading daily fantasy sports market company based in Boston, along with CEO Jason Robins, have expressed their interest in entering the sports betting industry in states that are currently considering its legalization.

“Our objective has consistently been to enhance the connection between fans and the sports they are passionate about. With the recent approval from the Supreme Court, DraftKings can now utilize our established technology to deliver inventive online sports betting solutions to our valued customers. This decision enables us to expand our product range and capitalize on our distinctive ability to foster fan involvement.”

The question of whether Massachusetts lawmakers will allow the offering of those same sports betting products in the state remains uncertain and can only be answered by them.

Nevertheless, the gradual progression of the state in expanding its gambling options in the past ten years implies a clear outcome: Massachusetts will inevitably establish a regulated and taxed sports betting market. It is only a question of when.