Govt. Charlie Baker signed into law a Massachusetts sports wagering bill, setting the stage for what will be a closely watched regulatory process over the coming months after many betting enthusiasts feared it would falter during splintered negotiations this summer.
Baker’s signature finalizes what has been a years-long push to legalize sports betting in Massachusetts and bring the state into line with many of its neighbors. And it comes one day before a Thursday deadline to take action on legislation Beacon Hill sent him last week during a frenzied end to formal lawmaking for the year.
“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.”
But even with Baker’s approval, sports betting in the commonwealth is not ready for prime time just yet as the Massachusetts Gaming Commission takes the reigns on implementation. It may take until 2023 before people can place bets within the state on their Boston sports teams.
The Gaming Commission must now solidify regulations for the newly legal state industry and process licensing applications. A new timeline emerged during a commission meeting last week after top lawmakers optimistically predicted betting could be rolled out in time for the upcoming football season.
Commissioner Brad Hill said regulators wanted to “take our time” with implementing the new law.
“I want the public to understand, as we as commissioners are starting to understand, that this isn’t something that’s going to happen overnight,” the former state representative said. “I just want the public to be clear, at least from my view — I’m not speaking for the whole commission — but from my point of view, this is going to take a little longer than people probably anticipate. And I’m OK with that.”
A compromise deal on sports betting was far from a guarantee as lawmakers grappled with divergent stances on tax rates and licensing logistics, among other measures. It was a balancing act as they also raced against the clock to hash out differences on an economic development and tax relief bill that ultimately failed to advance on Beacon Hill.
Speaking to reporters Tuesday, House Speaker Ronald Mariano said it would be “disappointing” if implementation takes too long.
“You’ve got two hotels that are ready to open the doors as quickly as you can,” he said. “I know Encore has built a room, and I know MGM is depending on this to increase their bottom line. So I hope we can get it up and running… at least in time for fall football.”
Sen. Eric Lesser, who helped negotiate the final bill, said “sports betting is now legal in Massachusetts!”
“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.”
The new sports wagering law Baker approved sets a 15% tax rate on in-person sports betting and 20% for mobile or digital wagering. It also allows for some collegiate sports betting — a sticking point that led Senate President Karen Spilka and House Speaker Ron Mariano to publicly spar as their chambers appeared deadlocked in reaching a compromise.
Residents cannot bet on Massachusetts colleges and universities “unless they are involved in a collegiate tournament,” according to the bill. March Madness, for example, is fair game for betting on Massachusetts schools.
The bill outlines three licensing categories — in-person wagering at casinos with some digital and mobile application options, in-person wagering at live or simulcast horse racing facilities and fully mobile or digital wagering.
Lawmakers incorporated what they said were myriad consumer protections into their bill such as not allowing people to use credit cards to place bets. Licensed mobile applications and digital platforms must also “prominently display” information for a problem gambling hotline, which will be overseen by the state Department of Public Health.
Licensed sports betting operators will be tasked with submitting annual problem gaming plans to the Massachusetts Gaming Commission and must outline how they intend to identify patrons with “suspected or known problem gaming behavior,” help those patrons connect to resources, and ensure minors and people on the self-excluded wagering list do not participate in betting.
While legal sports wagering is not expected to serve as a major revenue stream for the state, lawmakers say it will tamp down black market activity, as well as ensure residents are not pouring money into neighboring states like Connecticut and New York, where it is already legal.
Sports betting could become more commonplace throughout the commonwealth, particularly at establishments including restaurants, bars, and nightclubs — pending a study from the Massachusetts Gaming Commission.
By the end of the year, the commission is required to submit a feasibility report on installing sports wagering kiosks at local retailers, while exploring the economic impact, problem gambling risks, and recommendations to “ensure diversity, equity and inclusion are included in this method of sports wagering.”
Proponents of expanded betting at small businesses say it will further curb illegal wagering and give businesses a much-needed financial jolt after suffering blowbacks from the COVID-19 pandemic.
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