Massachusetts’s new bill and the future of sports betting

On January 17, a new bill introduced in Massachusetts by Senator John Keenan proposed sweeping changes to the state's sports betting landscape. Simultaneously, lawmakers in Mississippi and Nebraska advanced measures that could expand digital betting access. The starkly different approaches highlight a growing divide in how states regulate and capitalize on the booming sports wagering industry.

Massachusetts: Stricter Rules, Higher Taxes

Massachusetts, already one of the most tightly regulated sports betting states, may soon become even stricter. Senator Keenan's proposed bill, titled An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting, includes eliminating in-play bets, mandating affordability checks, and raising the digital betting tax rate from 20% to a striking 51%.

The bill also introduces new advertising restrictions, including a ban on wagering ads during televised sports events, and prohibits operators from compensating VIP hosts based on customer deposits or bets. Operators would be required to double their contributions to responsible gambling initiatives, from $1 million to $2 million annually.

Keenan's proposal follows a challenging first year for operators like BetMGM, DraftKings, and FanDuel, which faced fines after digital betting launched in March 2023. While Massachusetts already bans prop bets and restricts wagering on state college teams, Keenan's latest measures aim to address lingering concerns about the industry's economic and social impacts.

Meanwhile, in Mississippi, Democratic Representative Cedric Burnett introduced HB 682, a bill that would bring digital sports betting to the state. Mississippi legalized retail sports betting in 2018 but has repeatedly rejected online wagering proposals.

Burnett's proposal would allow licensed casinos—of which there are 30 in the state—to offer digital betting through management service providers. The state would tax digital operators 8% on gross gaming revenue exceeding $134,000 monthly. Esports would also be included in the list of approved events for wagering.

If the bill passes, it would go into effect on July 1, potentially expanding Mississippi's sports betting market significantly. However, standalone digital platforms would remain prohibited, meaning the industry would remain tied to brick-and-mortar casinos.

On the other hand. Nebraska, a relative newcomer to sports betting, is also exploring digital expansion. After launching in-person wagering in June 2023, state lawmakers are now revisiting the possibility of online betting. Senators Eliot Bostar and Stanley Clouse have introduced two bills: one to clarify the legality of digital betting through a constitutional amendment and another to establish a regulatory framework.

Clouse’s proposal would allow licensed racetracks to operate one digital platform each, with a $5 million licensing fee payable over five years. Notably, the bill would remove the ban on betting on Nebraska state teams during home games. If approved, these changes would take effect on September 1.

Senator John Keenan's proposed bill in Massachusetts would more than double the digital sports betting tax rate from 20% to 51%, which, if enacted, would be one of the highest sports betting tax rates in the United States.

 

The Future

The differences between these proposals underscore the varied approaches states are taking to sports betting regulation. Massachusetts is opting for more restrictive policies, citing concerns over consumer protection and industry practices. In contrast, Mississippi and Nebraska are moving toward broader access, seeking to maximize economic benefits while maintaining a focus on problem gambling initiatives.

As the debate over sports betting continues to evolve, these legislative efforts could shape the future of the industry across the United States. Whether through stricter oversight or expanded digital access, states are grappling with how best to balance economic opportunity with social responsibility.