The Massachusetts sports betting market may be seeing some changes after a lawmaker proposed new rules and limits on the state’s gamblers.
Sen. John Keenan introduced S.302, known as the “Bettor Health Act.” The bill would take several actions to hopefully curb gambling addictions.
It would raise the tax rate for online sports betting, ban ads during game broadcasts, require operators to pay twice the amount they contribute now to the Public Health Trust Fund, and more. In a forum introducing the plan, Keenan compared the popularity of online betting to the opioid crisis.
“If we don’t see the similarities, we’re going to find ourselves again so far behind trying so hard to create an infrastructure to address it,” he said.
Keenan Wants Huge Tax Increase
Since launching sports betting in March 2023, Bay State bettors wagered more than $13 billion. As a result, the number of calls to the state’s problem gambling helpline have greatly increased, according to reports from the Boston Globe.
The Bettor Health bill would massively raise the Massachusetts online sports betting tax rate from 20% to 51%. The increase would put the rate at the same level as other nearby states like New York, Rhode Island and New Hampshire.
Additionally, the bill would put limits on online sportsbook advertising. It would ban ads during game broadcasts, but also prohibit ads using language misrepresenting a bettor’s odds of winning.
The bill also bars online sports betting operators from paying employees, known as “hosts,” based on a percentage of how much they convince a customer to bet. In-play and proposition bets would also be banned. Keenan notes that “public health experts warn (these bets) are designed to promote addictive behaviors.”
Here are other aspects of the bill:
- Adding sports agents and promoters to the list of those prohibited from wagering on sporting events
- Limit how much people can bet each day unless gambling operators conduct affordability checks on customers to determine they have sufficient funds
- Direct the Massachusetts Gaming Commission to research the links between problem gambling and suicide
- Require online operators to provide the state with customer data on betting activities, including wager amounts and frequency, “so qualified researchers can study problem gambling.”
The bill notes that customers would remain anonymous and data would not include names, addresses, or bank account information.
Other legislators appeared to be concerned about problem gambling in the state as well. Rep. Carole Fiola filed a bill in the state house to study resources available to problem gamblers and to better promote the programs.
“We know that there are several organizations and facilitators working very hard in this space to increase access to these treatment areas, problem gambling treatment, and it’s imperative that these organizations work together to provide the best services for those in need,” she said. “This legislation also wants to expand physician screening coverage for annual physicals to create another touch point for individuals to reach out. I’m proposing adding a screening question for problem gambling, the same way physicians already asked about alcohol consumption and drug use at a physical.”
Several other states are also considering tax increases on sports wagering and other forms of gambling. Massachusetts regulators also recently ordered Robinhood to stop offering sports prediction markets in the state over concerns that it’s a form of illegal gambling.
