Massachusetts Online Sports Betting Tax Rate Remains at 20 Percent

Massachusetts Online Sports Betting Tax Rate Remains at 20 Percent

Senator John F. Keenan proposed increasing the tax rate to 51 percent, in line with most US sports betting states. However, his colleagues in the Senate rejected the proposal, and the Massachusetts online sports betting tax rate will remain at 20 percent.

During the first year of online sports betting, Massachusetts received $ 135.7 million in tax revenues. Senator Keenan noted that this figure could have been $346.12 million if the tax rate had been 51%. He argued that operators should pay their fair share, considering their unexpected financial success in the state.

According to bookie PPH reports, Massachusetts would have joined New York as the state with the highest taxes on sports betting if it had imposed a fifth of that percent. Keenan criticized sports betting licensees for not attending a recent meeting to address consumer limit enforcement. They turned down an invitation to sit down and discuss their methods. Also, operators said doing so would have revealed confidential information about their business.

The tax increase amendment was decisively rejected following Keenan’s approximately 25-minute speech.

Massachusetts Online Sports Betting Tax Rate and Other Issues

Massachusetts Online Sports Betting Tax Rate Remains at 20 PercentWhile discussing the tax amendment, Keenan raised several other issues. He pointed out the potential risks of legalizing iGaming in the state. Also, he called out the expansion of the Massachusetts lottery to online venues. Lastly, he discussed the practice of sports betting operators bombarding vulnerable populations with excessive advertising.

According to pay per head bookie industry news reports, advertising on television and online, and solid marketing elsewhere in the state, sports betting companies target youth and vulnerable communities. However, Keenan was wrong when he said that operators use phrases like “risk-free” and “no sweat” to entice clients. According to the Massachusetts Gaming Commission, companies couldn’t use such words in gaming marketing.

Citing integrity concerns in professional sports, he demanded that prop bets be outlawed entirely in Massachusetts and also sought to outlaw in-game sports betting.

Massachusetts Sports Betting Industry

On January 31, 2023, legal sports betting was launched at the three casinos in Massachusetts. As of March 10, 2023, online sportsbooks are operational. Massachusetts’s legal sports betting industry brought in almost $93.9 million in taxes and levies by the end of 2023. The General Fund receives 45% of the sports betting tax, the Workplace Investment Trust Fund 17.5%, and the Gaming Local Aid Fund 27.5%.

Nine percent of the sports betting tax goes to the Massachusetts Public Health Trust Fund, which was set up to help pay for studies investigating the causes, impacts, and treatments of problem gambling. Since sports betting started, it has totaled over $8.44 million, and many entrepreneurs want to learn how to open a sportsbook because of this.

The Youth Development and Achievement Fund receives the remaining one percent of the sports betting tax. The retail sportsbooks in Plainridge Park, Encore Boston Harbor, and MGM Springfield in Massachusetts are subject to a lower tax rate of 15%.

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