Massachusetts could hike gambling tax, usher in affordability checks, kill in-play betting

Massachusetts has been among the first states to regulate its sports betting, but it has been also one of the most pedantic in enforcing rules and going after companies that have been suspected of coloring around the lines.

A new bill introduced by Senator John Keenan is now attempting to expand the regulatory oversight the state exercises over the industry, although his proposal is not necessarily the view of all lawmakers.

Massachusetts want tougher gambling tax, affordability checks – no in-play betting

Regardless, under Senator Keenan’s proposal, Massachusetts is set to witness some significant upheavals in its gambling industry. The An Act Addressing Economic, Health and Social Harms Caused by Sports Betting, as the draft law is called, is an ideological offshoot of the SAFE Bet Act, a federal piece of legislation that seeks to enforce tougher federal laws on sports gambling with the goal of shielding consumers from harm.

Senator Keenan’s bill seeks to shutter in-play betting for good, arguing that its high-risk nature has caused an uptick in reckless spending and addiction. The senator is also keen to see what other jurisdictions have already been fast to adopt – affordability checks.

These checks essentially put the onus on regulated companies such as BetMGM, DraftKings and FanDuel to verify whether a customer has the actual financial means to gamble and place wagers.

The amount the senator suggests is no more than $1,000 daily and $10,000 monthly and adds that no more than 15% of a person’s money in their bank account may be wagered in a single day.

Seen as an obtrusive measure that undermines sports bettors’ privacy and right to choose, Senator Keenan has called on the need to limit the rising rates of gambling addiction in Massachusetts with young men suffering disproportionately.

Comprehensive approach to protecting consumers from harm

A yet more ambitious take on the new legislation is to see the tax rate for iGaming transactions raised to 51% from its current 20%. The senator has been trying to work around a similar legislation in 2024, and he is now doubling down on his efforts in the new sessions, finding it appropriate to also exact a higher responsible gambling tally from licensed operators.

Senator Keenan is proposing that companies pay $2m to various responsible gambling initiatives, which will be a two-fold increase from the $1m that companies are paying now. Senator Keenan is also pushing for tougher advertising rules meant to protect vulnerable consumers from over-exposure to sports and casino gambling ads on television.

Image credit: Unsplash.com