A controversial Massachusetts sports betting amendment was struck down Thursday, just days after being introduced. That amendment would have more than doubled the state’s 20% online sports betting tax rate.
The unanimous rejection came after an impassioned speech from Sen. John Keegan, who authored the proposed Massachusetts sports betting amendment. Among other points, his presentation included a plea for more responsible gambling measures and protections.
More on Thursday’s events
Amendment 828 called for a significant increase to the Bay State’s online sports betting tax rate. If passed, that would have changed to a 51% clip, tying NY sports betting for the highest tax rate in the country.
During his presentation, Keenan argued sports betting advertising was deceptive. This is a similar argument to another amendment he proposed last year, and such advertisements are already illegal in Massachusetts.
He added his support for a blanket ban on all prop bets and in-game betting in Massachusetts. An in-game betting ban would be the first of its kind nationwide. A Minnesota sports betting bill considered during the most recent legislative session added similar language but was never debated or voted on.
Before the end of his presentation, Keegan warned fellow lawmakers about the prospect of online casinos coming to the state. He said:
“If we do not act now, there will be no going back with this industry. We have an obligation to the young people that are being targeted, everyone being targeted.”
Amendment could have drastically changed Massachusetts sports betting
The rejection of Keegan’s proposed amendment came quickly. Such a tax rate would have had undeniable ramifications within the state’s industry, which was legalized in 2022 and launched in early-2023.
The 51% tax rate on operators would have made Massachusetts subject to significantly fewer sports betting promos. New York, for instance, has a much smaller menu of introductory bonuses due to that tax rate. Furthermore, new operators would have been presented with a much higher barrier to entry.
Massachusetts is not the only state that has considered or implemented a higher sports betting tax rate. Illinois sports betting may soon see a 35% tax rate, while New Jersey sports betting could be faced with a 30% tax rate. Ohio sports betting, meanwhile, has already seen its tax rate double, from 10% to 20%, beginning with the start of the 2024-25 fiscal year.
