Massachusetts Weighs Major Gambling Law Reforms

Massachusetts lawmakers are considering substantial changes to the state’s sports betting regulations thanks to a newly proposed bill by State Senator John Keenan. SD 1567 builds upon the state’s previous player safety initiatives, introducing measures aimed at shoring up responsible gambling practices, increasing tax rates on operator revenues, and clamping down on certain betting activities and advertising.

Operators Could Face Substantial Restrictions

If successful, the bill promises to place Massachusetts as a leader in player protection among regulated US markets. SD 1567 has received support from the Public Health Advocacy Institute, known for promoting the SAFE Bet Act at the federal level. However, skeptics point out that excessive regulation could hinder the state’s growing sports betting industry.

Some notable proposals include daily and monthly betting limits of $1,000 and $10,000, respectively. Users wishing to exceed these thresholds will be subject to affordability checks, capping bets at 15% of the bettor’s bank account. This proposal notably mirrors similar measures introduced in the UK, which have sparked debates over privacy and responsible gaming.

The bill also increases the operator revenue tax rate to 51%, which would tie it as the highest among US states alongside New York. Retail operators currently face a 15% tax rate, while mobile operators must pay 20%. While these new rates could bring in hundreds of millions of dollars of revenue for the state, industry stakeholders fear that such a financial burden could force some companies out of the regulated market.

Gambling Harm Prevention Is a Priority

The legislation also seeks to ban in-game wagering and prop bets. Same-game parlays, bonuses, and odds boosts also face similar treatment, echoing rising concerns that these practices deceive consumers and can lead to significant gambling harm. Sports betting advertising during live sporting events will be banned to reduce exposure to younger and vulnerable audiences.

SD 1567’s commitment to consumer protection also extends to understanding and monitoring gambling addiction by requiring operators to collect anonymous player data and share it with a nonprofit research entity. This organization will use the information to study addiction, develop evidence-based harm reduction strategies, and develop systems to monitor and intervene in high-risk gambling behaviors.

The commission shall convey the anonymized data to an experienced nonprofit research entity that shall make the data available to qualified researchers.

SD 1567

Such initiatives would build upon the Massachusetts Gaming Commission’s commitment to balancing stakeholder interests with consumer safety. The regulator previously expressed its intent to investigate betting limitations and has considered measures like allowing sports betting kiosks in bars and restaurants. However, the new bill could meet significant pushback from stakeholders as higher taxes and restrictions could lead to unintended consequences.