Governor Charlie Baker said he wanted it and now lawmakers are hoping to make it happen. Massachusetts legislators are considering five different sports gambling bills with hopes of finding approval within the next couple of months. If sports gambling is legalized, some analysts forecast that the state could earn as much as $35 million in tax revenue next year.
Revenue would be generated through a combination of licensing fees and tax payments. To apply for a sports gambling license, an operator would have to pay an initial fee of $100,000 and another $500,000 every five years to keep the license active. Sports wagers made in person at sportsbooks would be charged a tax of 10%, while online bets would be subject to a 12% tax. Only current gambling operators – casinos and slot parlors – would be allowed to apply for their sports gambling licenses.
As is the case in other states, such as New Jersey, wagers on collegiate sports events would be prohibited.
Apart from the bill presented by Governor Baker, Senate Bill (SB) 882 was sponsored by Senator James Welch. It seeks approval for both offline and online sports gambling and is similar to another bill, SB 903, which was sponsored by Senator Brendan Crighton. Senator Bruce Tarr is working on a bill that would give the states gaming bureau, the Massachusetts Gaming Commission, 180 days to study sports gambling and its impact to the state. Another bill, Senator Michael Rush’s SB 1110, also hopes to find the green light for offline and online sports wagers.
The introduction of sports gambling could give the state a much-needed boost in revenue. Sports wagers would be allowed at MGM Resorts’ MGM Springfield, Encore Boston Harbor and Plainridge Park. However, MGM Springfield has seen two straight months of declining revenue. It only opened last August, making the decline especially worrisome. There have also been concerns raised over an apparent connection between MGM Springfield and an increase in crime.
In addition to MGM’s troubles, The Encore Boston Harbor isn’t progressing as expected due to issues with its casino license. Those issues stem from the casino’s owner, Wynn Resorts, being involved in an investigation related to how it handled sexual misconduct allegations against its founder and former CEO, Steve Wynn.
