Massachusetts Bill Proposes Sports Betting Tax Hike, In-Game Betting Ban

• Sen. John F. Keenan (D – Norfolk/Plymouth) introduced a bill to drastically alter the state’s sports betting landscape
• The legislation proposes a 155% increase to the state’s sports betting tax rate
• His bill also proposes a complete ban on in-game sports betting and all prop bets

One Massachusetts lawmaker is hoping to drastically alter the state’s sports betting landscape.

Sen. John F. Keenan (D – Norfolk/Plymouth) recently introduced SD 1657, “An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting.” If approved, Keenan’s legislation would set some imposing restrictions on the commonwealth’s sports betting market and the way customers wager in the state.

His legislation calls for a 155% increase to the state’s current 20% sports betting tax rate, a complete ban on in-game and prop bets, and prohibits sports betting ads during televised sporting events.

Personal Wagering Limits

Keenan’s bill calls for an increase to the state’s sports betting tax rate from 20% to 51%, putting the commonwealth in line with New York, Rhode Island, and New Hampshire as the highest taxed sports betting states in the country.

This is not a new venture for Keenan, who proposed a similar amendment to the Senate’s FY 2025 Massachusetts budget. It’s a fair share for operators to pay as they’ve experienced far more financial success in Massachusetts than they originally estimated, he said during the budget meetings last May.

“If we do not act now, there will be no going back with this industry,” Keenan said.

His amendment was roundly rejected by his Senate colleagues.

However, his new piece of legislation — in addition to the tax increase — is also calling for a complete rehash of the way the state offers sports betting. Under his new bill, the following changes would be made:

• Ban on in-game sports betting
• Ban on prop bets
• Prohibition on sports betting during televised sporting events
• Prohibition on customers placing more than $1,000 a day, or $10,000 a month, without an operator conducting an affordability check on the customer
• Limiting wagers to 15% of a users bank account
• No operator employee – such as a director, officer, owner – can receive compensation for any percentage of wagers or deposits placed by a customer
• Increased funding ($2 million) to problem and responsible gambling initiatives
• Promotion or advertisements of bonuses, same game parlays, odds boosts, reload bonuses, or risk-free, no-sweat, or other free wagers added to the state’s unfair or deceptive acts or practices

The changes to the state’s sports betting market would be widespread and are more expansive than the simple tax rate increase he proposed during the 2024 session. Several pieces of his bill bear similarities to a national piece of sports betting legislation that has also been recently introduced.

Similarities to SAFE Bet Act

Several facets of Keenan’s bill bear a strong resemblance to Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal’s (D-CT) Supporting Affordability & Fairness with Every Bet Act (SAFE Bet Act), a piece of legislation to reduce gambling addiction, gambling related harms, and establish minimum federal standards for sports betting advertisements and use of artificial intelligence.

Under the SAFE Bet Act, sports betting advertisements would be banned from 8 a.m. to 10 p.m., be prohibited from airing during live sporting events, and prohibit ads “designed to induce use of gambling products by showing audience how to gamble or explaining how wagers work.”

If approved, users would not be able to deposit more than five times during a 24-hour period and would require operators to conduct “affordability checks” before accepting large wagers from customers. Additionally, it prohibits the use of credit cards to fund sports betting accounts.