Massachusetts sports betting debate heats up
DraftKings and casinos have voiced different opinions on how Massachusetts should legalise sports betting in the state.
US.- Massachusetts continues to debate sports betting and everyone wants to get a piece of the business. That’s why Boston-based DraftKings and three state casinos have voiced opposite opinions on the segment.
While the online gambling company wants iGaming companies to be included, casinos are not on board with it. MGM Springfield, Encore Boston Harbor and Plainridge Park want them to partner with land-based operators to launch their operations.
“DraftKings and our competitors should have a direct relationship with the regulator,” DraftKings CEO Jason Robbins said. “That means being directly accountable to the regulatory authority, the legislature, and ultimately, the residents of Massachusetts,” he said in testimony submitted to the legislature’s Joint Committee on Economic Development and Emerging Technologies.
However, MGM Springfield President Michael Mathis explained they’re open to get online companies involved but in partnership with land-based casinos. He assured it’s in the best interest of the state and the industry to continue to push Massachusetts to legalise sports betting.
“You can do it directly, but you’d be better protected doing it as sublicenses,” said Mathis.
Sports betting legalisation
Massachusetts may soon decide whether to legalise sports betting in the state as it will discuss it in Congress. There are two hearings scheduled for this week, to discuss the segment’s legalisation as several states jump into the action.
Lawmakers will have nine different Massachusetts sports betting bills to consider. One of which was submitted by the state’s governor, Charlie Baker.
The governor’s bill
Massachusetts Governor Charlie Baker introduced a new proposal in January that aims to legalise and tax bets on professional sports both online and at local casinos. The law would allow other entities to be licensed to offer the modality as well.
Baker detailed that he would file legislation to allow the Massachusetts Gaming Commission (MGC) to license the three casino operators in the state to offer on-site and online sports betting. This legislation would also pave the way for other operators, such as daily fantasy sports (DFS) entities to be licensed for sports betting.
“Our legislation puts forth a series of common sense proposals to ensure potential licensees are thoroughly vetted and safeguards are in place to protect against problem gambling and illegal activity,” said Baker in a statement.
The legislative piece would set a 10% tax on sports betting inside casinos, while online bets would be taxed at 12.5%; DFS operators are included in this category. The MGC would oversee sports betting operations both online and at casinos.
Official estimations said that taxes would raise US$35 million in Massachusetts’ next fiscal year, with the money from operations going towards local cities and towns. Bets on collegiate sports or amateur events would be prohibited.
