Massachusetts Bill to Increase Sports Betting Taxes by 155% Moves Forward

• Sen. John F. Keenan‘s (D – Norfolk/Plymouth) bill S.302 has been moved forward to the Senate Ways and Means Committee
• The bill proposes a 155% increase to the state’s sports betting tax rate
• The bill also proposes a complete ban on in-game sports betting and prop bets

A bill to radically alter the Massachusetts sports betting market and framework has been reported favorably to a new Senate committee.

The Joint Committee on Economic Development and Emerging Technologies voted 5-0 to move Sen. John F. Keenan’s (D – Norfolk/Plymouth) bill, S.302, to the Senate Ways and Means Committee. If approved, Keenan’s legislation would set some 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% online sports betting tax rate, a complete ban on in-game and prop bets, and prohibits sports betting ads during televised sporting events.

Bill Seeks to Alter Massachusetts Sports Betting Market

Keenan’s legislation was carried over from the 2025 legislative session. His bill, “An Act Addressing Economic, Health, and Social Harms Caused by Sports Betting,” will impose a new 51% tax rate on the commonwealth sports betting market, bringing Massachusetts in line with the highest taxes sports betting states in the country.

The lawmaker has introduced similar legislation for the past several sessions. In May 2024, Keenan introduced an amendment to the Senate’s FY 2025 budget, attempting to alter the state’s tax rate to 51%. He noted during a hearing on the budget that sports betting operators have experienced more financial success than expected, and if changes are not made there will be “no going back with this industry.”

His amendment was roundly rejected by Senate colleagues at the time.

However, it seems as if his new bill has some momentum, as the Joint Committee on Economic Development and Emerging Technologies this week favorably reported the bill to the Senate Ways and Means Committee.

The bill has yet to be scheduled for a hearing in the new Senate committee.

Complete Reshaping of Sports Betting Market

In addition to the tax increase, Keenan’s legislation seeks to complete alter the Massachusetts sports betting catalogue and its regulatory framework.

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
• Prohibiting customers betting 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 of $2 million (from $1 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

Additionally, the bill requires each licensed operator to annually provide the commonwealth with anonymous customer gambling habit data to be used by a nonprofit research company to conduct a study to better improve understanding of how gambling addiction develops and progresses.