In 2018, the United States Supreme Court overturned the 1992 Professional and Amateur Sports Protection Act – a law that effectively banned commercial sports betting nationwide. Since then, states across the country have rushed to legalize the estimated $150 billion industry . Seeking to join neighbors Rhode Island, Connecticut, New Hampshire and New York, the Massachusetts House voted on July 23 rd to pass HB3993 – an act regulating sports wagering .
In the words of Representative Dan Cahill, D-Lynn, “People are allowed to have fun – and sports betting is fun.”
The Commonwealth Anticipates Benefits from Sports Betting
By an overwhelming margin, house representatives embraced the notion that legalizing gambling is the best way to bring it “into the light” (Speaker Ron Mariano, D-Quincy), cutting back on illegal activity while reaping the taxable rewards of a vice industry. With in-person betting taxed at 12.5% and mobile wagers at 15%, the Commonwealth stands to bring in $60 million annually in new tax revenue . Unique to Massachusetts, the Act includes first-of-its-kind language that would allow so-called “untethered” licenses – licenses granted to mobile sportsbooks without physical partners. License fees will be high; at $5 million each, the state expects to $70 to $80 million in licensing fees alone .
Upcoming Massachusetts Sports Betting Vote
The debate is not yet settled; provisions still up-in-the-air include those allowing and regulating college betting, betting on individual player performance, and providing adequate consumer protections. The urgency and priority, however, is certain: Governor Baker has included $35 million in sports betting tax revenue in his last three annual budget proposals . The Senate is expected to hold a vote within a few days, but with the House’s overwhelming support and the Governor’s backing, Massachusetts is almost guaranteed to legalize sports betting by the end of this session.
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