Massachusetts Lawmakers Propose Tightening Regulations on Sports Wagering

Title: Massachusetts All Set to Crank Up the Heat for Sports Betting Operators

Image Credit: Beyond My Ken, CC BY-SA 4.0

A Quick Glance

A bill is in the pipeline to tighten sports betting rules, curtailing player options and sportsbook ads
The operator tax rate may surge from 20% to a staggering 51% under SD 1657
This proposed bill mirrors the one being considered in US Congress, focusing on broader financial regulations

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The Gist of SD 1657

Operators Beware: Brace yourself for a massive tax hike, from 20% to a whopping 51%[1][2].
Limited Bets: In-play (live) wagering and prop bets are off the table[1].
Strict Deposit & Wagering Limits:
Daily: $1,000
Monthly: $10,000 (unless affordability checks are passed)[1]
Affordability checks for amounts exceeding 15% of a patron’s bank account balance[1]
Advertising Limitations:
No ads between 8 AM–10 PM or during live sports events[1].
Bans "bonus bet," "no sweat," or similar promotions[1].
Payment Restrictions: No more credit card deposits[1].
Operational Changes:
No compensation models linked to patron wagering activity[1].
Bonuses, same-game parlays, and related features are deemed "unfair and deceptive practices"[1].

Compared to Other State Bills

Illinois SB 2399 (a similarly restrictive bill):
Bettors limited to five deposits every 24 hours[1].
Affordability checks required for deposits exceeding $1,000/day or $10,000/month[1].
Prohibits AI-driven personalized offers or gambling product designs[1].

Congressional Context

The proposed bill finds no direct mention in Congressional records[4][5]. Recent debates entail discussions on:
CFPB Oversight: A resolution to block the Consumer Financial Protection Bureau’s expansion of payment system regulations[5].
Tax Policy: Small business tax increases and Medicaid funding discussions[4][5], distinct from the sports betting industry.

What's Next: If passed, the proposed restrictions could steer operators toward reduced profitability, stifled market growth, and encouragement of unregulated offshore betting platforms due to stringent deposit and wagering limits. As of now, Congress seems unresponsive to comparable legislative efforts aimed directly at sports betting.

The sports betting landscape in Massachusetts may significantly change as a new bill proposes a increase in operator tax rates from 20% to 51%.
If the proposed bill SD 1657 is passed, there would be a series of restrictions on sports betting, such as a ban on in-play (live) wagering and prop bets.
Prominent industry insider Michael Savio, with expertise in the US online casino scene, sheds light on these developments and provides valuable insights on a variety of topics related to online gambling at casinos.com.
The proposed bill in Massachusetts also includes strict deposit and wagering limits, advertising restrictions, payment restrictions, and operational changes that could impact sports betting providers.
In contrast, Illinois SB 2399 also imposes restrictive measures on sports betting, including limiting bettors to five deposits every 24 hours, requiring affordability checks for large deposits, and prohibiting AI-driven personalized offers or gambling product designs.
The proposed bill in Massachusetts doesn't find a direct mention in Congressional records, but recent discussions have centered on resolutions to block the Consumer Financial Protection Bureau’s expansion of payment system regulations and small business tax increases, which are distinct from the sports betting industry.