Sports Betting Won't Come to Massachusetts as House Rejects Senate’s Bill

The House of Representatives in Massachusetts has dismissed an amended version of its economic development omnibus bill returned by the Senate, meaning sports betting will have to wait for some better days. Earlier this week, the House Committee on Ways and Means presented H.4879, an act designed to enable “partnerships for growth” in the state, suggesting a multitude of measures.

Among these was a proposal to legalize sports wagering in-person, online, and on mobile. Moreover, it included several rules regarding the licensing process, tax, and regulatory authority.

Even though the House ed an amended version of the bill, including a 30% gross revenue tax, the Senate then voted to replace the renumbered H.4887 with amendment S.2842. This version not only removed sports betting but the provisions for online lottery sales as well.

Shall Sports Betting Make it to the Bill?

Several amendments were suggested by of the Senate to add sports betting language to the bill. However, one was rejected and another two withdrawn before they went to a vote. If a compromise cannot be reached, the bill dies in the chamber.

As an attempt to save the day…

… a conference committee has been appointed, comprising three Representatives – Aaron Michlewitz, Ann-Margaret Ferrante, and Donald Wong – and Eric Lesser, Michael Rodrigues, and Patrick O’Connor from the Senate.

In charge to report a final compromise bill to the House and Senate for a final vote of acceptance in each branch, the committee could save the sports betting and online lottery language and reincorporate them into the bill.

What Did the Proposal Feature?

As far as stated in the original House bill, one of the key measures was to introduce three licenses:

• Category 1 license would cover online, mobile and in-person sports betting
• Category 2 in-person betting at racetracks
• Category 3 sports betting via mobile or online

Approvals to operate would cost $250,000 and run for five years. To continue its operations for another five years, the holder would need to pay $100,000 to renew the license.

License-holders would pay a fee based on the number of wagers taken on sports events at venues inside Massachusetts. At first, the rate of 1% of adjusted gross sports wagering receipts was set, but it was later reduced to 0.25%.

In addition to this…

…operators were imposed a tax rate of 30% of adjusted gross sports wagering receipts. The initial percentage was 15%, but one of a host of amendments approved by the House increased it.

A body in charge of awarding permits to interested parties would be The Massachusetts Gaming Commission.

What About Lottery Sales?

Among other amendments, approved by a vote of 157-1, there was also a measure to also legalize online lottery sales. This amendment would have also allowed the state Lottery Commission to “implement promotional activities” to encourage sales of lottery tickets.

As a part of protection measures…

… players would have been able to self-exclude from the online lottery. Moreover, they would have the possibility to set a maximum deposit and spending limits.

However, these proposals were also removed in the Senate amendment.

Source:

“MA betting saga takes late twist as House rejects Senate bill”, Rob Fletcher, igbnorthamerica.com, July 31, 2020.