A new amendment was filed just before the Feb. 28 deadline to the beleaguered H366 sports betting bill which was filed in 2019. This is the same bill that legal sports betting advocates and supporters hope will help the Bay State catch up with the legalized sports betting markets of other New England states.
The 17-page amendment delineates a new system of taxation, as well as establishes a structure for application and licensing fees. It also bans all betting on non-Division I colleges, Olympic sports, eSports and daily fantasy sports.
Other New England states have also moved forward with their legalization processes. New Hampshire legalized online sports betting in November 2018 and approved mobile sports bets 10 months later. Rhode Island legalized sports betting in July 2019 and now has a DraftKings mobile sportsbook currently taking bets. Connecticut is set to explore legalization in a hearing on Tuesday, while Maine has found its legalization floundering in the face of a veto by its Governor which was also upheld by its House.
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Under the new amendment, the Massachusetts Gaming Commission (MGC) will serve as the sole regulator of the state’s gambling industry. The MGC will have the discretion to decide what bets will be allowed, as well as to set limits on how much gamblers can bet on any individual wager.
The setting of betting caps particularly as a mandate of states’ regulatory agencies has been a hot topic in legalization. Operators claim that they should have the power to decide on the minimum and maximum limits on the bets they can take.
The gross revenue on retail sports betting in Massachusetts will be taxed at 10%, while mobile sports betting and daily fantasy contests will be taxed at 12% under the new amendment.
The amendment also outlines a four-tier system for licensing. Three tiers will require an application fee of $500,000, a licensing fee of $500,000, valid for five years and a $500,000 renewal fee every five years. The S1 tier is slated for Las Vegas-style casinos; it comprises retail sports betting as well as three online skins.
The S2 tier is for slot-only casinos; it comprises retail sports betting and two online skins. The SM tier is limited to mobile casinos, and will allow companies such as the Boston-based DraftKings to offer stand-alone mobile sports betting. The limit on SM licenses is set at five. The SH tier is reserved for racetracks, and is limited to just retail sports betting. The application fee for this tier is $50,000, with a licensing fee of $100,000 and an annual renewal fee of $25,000.
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