Proposed Changes to Protect Bettors
SB 1657 includes three key measures to help curb problem gambling. The first is a ban on live and prop betting, which are extremely popular among bettors but have been identified as the driving forces behind the spike in problem gambling. The change would also affect Same Game Parlays, which the bill identifies as “deceptive.”
The second is setting daily and monthly limits for players. This would help prevent players from taking massive losses. While sportsbooks have limits, lawmakers believe they are far too lax.
Lastly, the bill would enact severe limitations on how sportsbooks advertise themselves. That includes a band on advertising during sporting events.
Bill Would Also Hike Operator Tax Rate
In addition to implementing new regulations, the bill would create a massive tax hike for operators. If passed, the rate would jump from 20% to 51%, matching the highest in the country.
Many states have considered raising tax rates over the last year but have buckled under a fierce and loud pushback from the sports betting industry. This massive change will trigger a similar response, but Massachusetts is known for not shying away from fights with operators.
Strong Fight Expected from Sportsbooks
While Massachusetts is one of the smallest states in the US, this bill will garner attention from all over the country. States have struggled to enact regulations and tax hikes, often buckling over pushback from sportsbook operators.
If SB 1657 is passed, it could give other markets a roadmap to follow Massachusetts's example. That means smaller bet catalogs, less advertising, and higher taxes for sportsbooks. As much money the industry is generating, these three changes would lead to a sharp and quick drop.
This will give sportsbooks extra incentive to fight this currency legislation as they fight to keep their incredible revenue numbers.
