Massachusetts Bill Aims to Crack Down on Problem Gambling

Lawmakers in the Bay State are considering taking a drastic step to curb problem gambling.

The Massachusetts Senate is considering S.302, which proposes to add new regulations to protect sports bettors. The bill would also implement a 155% increase to the tax rate for sportsbooks, matching the highest in the country at 51%. 

While similar proposals have quickly failed in past sessions, this year’s bill passed its first Senate committee by a 5-0 vote. It is now awaiting review from the Senate Ways and Means Committee. 

Bill Would Tighten Regulations for Sportsbooks

While some states have enacted laws to help address problem gambling, S.302 would be the most significant effort to date.

Here are some of the biggest changes the bill calls for:

• Ban in-game betting
• Ban on all prop bets
• Ban on sportsbook advertising during televised events
• Limiting customers to $1,000 per day or $10,000 per month in wagers
• Sportsbooks must conduct an affordability check on bettors looking to wager over 15% of the funds in their bank account. 
• Double the funding to fight problem gambling
• Ban on advertisements involving bonuses, same game parlays, odds boosts, reload bonuses, or risk-free, no-sweat, or other free wagers

Betting Scandals Drive Support for Bill

One reason some lawmakers in the Bay State are concerned is the uptick in betting scandals involving pro and college athletes. They have included stay athletes, organized crime, and Hollywood-esque schemes, leading fans to question what they are watching.

A ban on in-game betting and props, as well as the wagering limits, would make it almost impossible for athletes to fix bets. Unfortunately, other states would need to add similar laws for them to have a true impact on the growing issue.

Bill Will Face Overwhelming Odds

While passing a Senate committee is a great sign for S.302, the odds of it becoming law remain extremely low.

One factor working against it will be the sports betting industry. The massive tax hike, combined with the new limits, would make operating in the state a losing proposition for most sportsbooks. That will lead to a well-financed opposition, with operators threatening to pull out of the market if S.302 is passed.

Another key factor is the rise of sports prediction markets. These operators are not required to follow state laws and tax requirements. That means they would be unaffected by these changes, prompting disgruntled sportsbook customers to switch to predictions. This would mean the state's tax revenue from sports betting would disappear even as residents continue to wager.