Massachusetts senator John Keenan 17 January introduced a bill that would eliminate in-play bets, introduce affordability checks, more than double the wagering tax rate and more.
Language in the bill, titled “An Act Addressing Economic, Health and Social Harms Caused by Sports Betting,” mirrors that of the federal SAFE Bet Act filed last fall.
Massachusetts is known as one of the most stringently regulated legal betting states in the US. But Keenan’s proposal goes beyond current restrictions. Currently, Massachusetts bettors can make in-play wagers, but cannot place prop bets. The law also already bans betting on Massachusetts state college teams, unless the teams are playing in a tournament.
Operators have struggled with this — BetMGM, DraftKings, FanDuel and others have been fined since digital go-live in March 2023.
Bet limits and 51% tax proposed
In addition, Keenan’s proposal would limit how much bettors can wager in a day or month — $1,000 or $10,000, respectively — without an affordability check. No US state currently mandates affordability checks. According to the bill text, daily or monthly wagers cannot exceed “15% of the amount” in a bettor’s bank account.
For the second time in two sessions, Keenan is proposing bumping the digital betting tax rate from 20% to 51%. His attempt in 2024 would have been part of the state budget bill, but was rejected.
The latest proposal also addresses another issue that has been in the news by banning “compensation for any percentage of wagers or deposits placed by a customer of the operator or sports wagering operator.” VIP hosts at many national sportsbooks are paid a commission based on customer deposits or bets.
Among other changes, Keenan is proposing to double the amount that operators are required to contribute to problem and responsible gambling initiatives from $1 million (£821,828/€969,400) to $2 million. This is in addition to being taxed.
Operators would also be subject to more stringent advertising rules, including a ban on wagering ads during televised sporting events. The Massachusetts Gaming Commission explored a similar ban, but determined that it could not practically be enforced, particularly for nationally televised events.
Mississippi
Mississippi was among the first states to launch legal sports betting — no new law was required. Retail wagering went live in August 2018. But lawmakers there have considered and rejected online betting multiple times.
This year, Democratic representative Cedric Burnett is trying again. HB 682, which would allow for statewide digital betting, was immediately referred to the house gaming committee. It does not yet have a hearing date.
Like in-person betting, the state would tax digital operators 8% on gross gaming revenue (GGR) above $134,000 per month. Retail sportsbooks also pay a 4% local tax, but that is not addressed in the latest proposal.
Licenced casinos would be able to offer digital betting, either on their own or through a management services provider. There are 30 licenced commercial casinos in Mississippi. Major operators, including Bally’s, BetMGM, Caesars Sportsbook, DraftKings and FanDuel, already have deals to operate in-person wagering in the state. The bill does not allow for stand-alone wagering platforms.
Other key points in the bill:
Esports is included on the list of sporting events that would be available for wagering;
While fantasy sports are already regulated by the state, there is a section in the proposed digital betting bill that would require operators to “comply with provisions of this section” if a company’s “total player roster” is more than 100 players.
If passed, the bill would go into effect 1 July.
Nebraska
Nebraska lawmakers will also again try to legalise digital betting. The state launched in-person wagering in June 2023, after voters approved it in November 2022. At the time, lawmakers and regulators weren’t sure if they should interpret the language to include digital betting. Since then, lawmakers have proposed expanding or clarifying the definition, but have not gained traction.
Senators Eliot Bostar and Stanley Clouse 17 January dropped a pair of bills that would again send the decision to the voters (20 CA) and outline a framework (LB 421). Clouse’s bill would only move forward if the constitutional amendment is approved by the legislature.
With an effective date of 1 September, Clouse’s bill would allow licenced racetrack operators to apply for online sports betting licences, and would set the application fee at $5 million, payable over five years. Each racetrack would be entitled to have one digital platform.
It would also remove the current ban on betting on Nebraska state teams when they are playing at home.
In Nebraska, sports betting tax revenue is earmarked for a property tax relief fund. Clouse’s proposal would send 90% of tax revenue to that fund, 3.5% each to the gaming commission fund and gaming commission tax fund and 3% to problem and responsible gambling initiatives.
