Time Running Out To Pass Massachusetts Sports Betting Legislation

Executives from the three casinos in Massachusetts made a compelling argument in favor of legal sports betting legislation as the Sunday deadline for passing new laws approaches.

On Monday, a letter was sent to members of the Massachusetts Senate and House by Jenny Holaday, President of Encore Boston Harbor, Chris Kelley, President and COO of MGM Springfield, and North Grounsell, Vice President and General Manager of Plainridge Park Casino.

The letter stated, “As the legislative session nears its end in less than a week, we kindly urge you to take advantage of this opportunity to create a fair and balanced environment in this highly competitive industry. We are fully prepared to offer our knowledge and experience in policy and operations, and are eager to collaborate with you in establishing a thriving sports wagering market in the Commonwealth.”

Differences in MA sports betting bill

A MA sports betting bill was passed by both the state’s House and Senate, but with conflicting versions. As a result, a conference committee was formed to address the discrepancies. Six lawmakers, three from each chamber, are currently in negotiations to create a mutually agreed-upon bill.

Lawmakers have until Sunday to pass a bill during this legislative session and forward it to Governor Charlie Baker, who has been a strong advocate for sports betting.

Betting on college sports and tax rates remain the primary areas of disagreement between the two versions.

In the House’s version, the act of placing bets on professional and college sports is made legal. However, in the Senate’s version, betting on college sports is not permitted. Additionally, the Senate proposes a tax rate of 35% for online sports wagering and 20% for in-person betting. On the other hand, the House suggests lower tax rates of 15% for online sports wagering and 12.5% for in-person betting.

Additional variations in the legislation include:

• The Senate permits nine sports betting licenses, granting one license to each casino and six licenses to untethered mobile operators. In contrast, the House allows every casino to have three skins, each horse racetrack to have one skin, and grants unlimited untethered mobile licenses.
• During game broadcasts, TV advertising for sports betting is prohibited by the Senate.
• Credit card deposits are not permitted in the Senate.

Casino execs: We’re at a disadvantage

According to this week’s communication from the casinos, it was mentioned that 35 states, including neighboring states Connecticut, New Hampshire, New York, and Rhode Island, have legalized sports betting. The letter highlighted that residents of the commonwealth are within an hour’s drive of a state where sports betting is legal.

The casino executives expressed that due to this outcome, our rivals in these states are currently providing a substantial amenity and service which we are legally restricted from offering in Massachusetts. Consequently, they are successfully attracting the entertainment spending of the Commonwealth once more.

The lack of legal sports betting in Massachusetts has been highlighted by the executives, who note that it is causing residents to place bets in other states or through illegal channels. This not only results in a loss of vital tax revenue for the commonwealth but also hinders the casinos’ capacity to expand their workforce.

Lawmakers offer pessimistic tone

Last week, the prospects of lawmakers reaching a consensus on a sports betting compromise did not seem optimistic, as indicated by Massachusetts House Speaker Ron Mariano and Gov. Baker.

Mariano admitted to reporters, “To be honest, I have no idea. I simply don’t know. Our positions are quite distant from each other.”

“It’s difficult to determine what will ultimately pass the gate at the end of the session,” Baker commented in an interview on GBH News’ Boston Public Radio.

This week, Senate President Karen Spilka expressed a more optimistic tone.

Spilka informed reporters on Monday, as reported by MassLive.com, that we are actually considering sports betting, and I genuinely hope we are able to make progress on this matter.