Massachusetts legalizes sports betting

The Massachusetts sports betting bill was signed into law by Governor Charlie Baker on Wednesday, thus ending a long and arduous campaign to bring the state into alignment with many of its neighbors.

“Sports betting is now legal in Massachusetts!” Senator Eric Lesser, who was instrumental in the final legislative negotiations, exclaimed.

“This new law will give residents new ways to engage with sports, generate new jobs and investment, and includes some of the strongest consumer and player safeguards in the country,” he said in a statement.

“I’m confident this law will be a model for other states, and I look forward to seeing its full implementation in the months ahead. I’m proud to have been a part of the team that worked to deliver sports betting in Massachusetts.”

In a ruling that was conferred in May 2018, the Supreme Court of the United States gave individual states the authority to determine the laws that pertain to gambling on sports. However, it took policymakers in Massachusetts over four years to reach an agreement on how the state would govern this new industry.

The bill arrived on Wednesday, one day before the deadline that was set for Governor Baker by Beacon Hill the previous week.

“Our administration first filed legislation to legalize sports wagering in the Commonwealth several years ago, and I am glad to be able to sign this bill into law today,” Baker said in a statement.

“We appreciate the dedication and compromise that the Legislature demonstrated on this issue, and we look forward to supporting the work of the Massachusetts Gaming Commission on the responsible implementation of the law over the next several months.”

The legislation, officially titled ‘An Act Regulating Sports Wagering’, furnishes the Massachusetts Gaming Commission (MGC) with authority to issue in-person licenses at gaming establishments such as casinos, racetracks, and simulcast centers, as well as mobile licenses for online and app-based gambling.

It is anticipated that the state will collect an estimated $60 million in annual revenue, in addition to up to $70 to $80 million in first licensing fees, which must be reissued every five years. There will be a tax of 15 percent applied to wagers placed in person, and there will be a fee of 20 percent applied to wagers placed by mobile device.

The revenue that is brought in will be split up among the several municipalities and put toward funding economic, educational, and public health initiatives.

Wagering on college sports is legal, with the exception of games involving schools located in the state of Massachusetts – unless those schools are taking part in a major national tournament, such as March Madness. A person must be at least 21 years old to participate in gambling. The Gaming Commission will also be carrying out research into the viability of permitting retail venues to operate sports wagering kiosks.

The statute regarding sports betting in Massachusetts gives the MGC the authority to grant three different types of licenses.

Each of the three commercial casinos in the state – Encore Boston Harbor, MGM Springfield, and Plainridge Park – meets the requirements to qualify for rights to operate a brick-and-mortar sportsbook. Also, the casino will be granted permission to provide online sports betting through a partnership with a third party.

Both of the state’s horse racing tracks meet the requirements for in-person sports betting, but they do not have mobile rights. The third license category of sports betting is for entirely remote operations. Companies such as DraftKings and FanDuel will be able to apply for these online sportsbook licenses without being tied to a specific venue.

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