Game On: Sports betting has been legalized in Massachusetts, but implementation could take months.
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The gaming-thriving state became the 31st state to legalize sports gambling, but the industry has bigger prizes awaiting in California, Texas and Florida.
S.Port bettors in Massachusetts will soon be able to ditch their local bookmakers and buy legitimate sportsbooks. Gov. Charlie Baker signed the Massachusetts Sports Betting Act on Wednesday, making the Bay State his 31st state in the nation to legalize sports betting.
“Our administration first introduced legislation to legalize sports betting federally several years ago, and today we are delighted to be signing this bill into law,” Governor Baker said in a statement. “We appreciate the dedication and compromises that Congress has shown on this issue and look forward to supporting the Massachusetts Gaming Commission’s work on the responsible implementation of the law over the coming months.”
Massachusetts sports betting laws haven’t been a surefire bet this year. Starting in 2021, he was elected during the final legislative session in 2022 after the elected officials stopped staying up all night before the state Senate passed him 36-4. For two years, state legislators have been unable to agree to the bill, and have openly discussed that Governor Baker may not be in office until the end of July. Now that the bill is enacted, state gambling commissions will begin implementation and licensing work. This process is expected to take several months.
Legislators estimate that legal sports betting brings in $60 million in tax revenue annually, with a 15% tax on in-person sports betting and a 20% tax on mobile betting. Once the company is licensed, it can place bets in brick-and-mortar casinos, racetracks and mobile his apps. The state gaming commission regulates the industry and is allowed to license up to seven companies that do not yet have a casino presence in Massachusetts. The state expects to generate up to $80 million in license fees that must be renewed every five years.
State Senator Eric Lesser, the sponsor of the bill, said on a Massachusetts radio show: Zorak and Bertrand Legislators have indicated they want legal sports betting to begin before the Super Bowl, the nation’s largest single-game betting event.
“I want the public to understand that this is not going to happen overnight, as we Commissioners are beginning to understand,” Commissioner Brad Hill told Statehouse News. It’s going to take a little longer than expected, but I want to get it right, so that’s okay.
On Tuesday, Massachusetts House Speaker Ronald Mariano said he would be “disappointed” if implementation dragged on. “We have two hotels ready to open their doors as soon as possible,” he said. “I know encore [Boston] Built a room and I know MGM [Springfield] We rely on this to generate revenue. So I hope you can get it up and running. ”
It took me a long time to get it right. Managing B Global, a consulting firm focused on games, sports and hospitality. His partner, Brendan, said Bassman said that Massachusetts is finally joining the majority of states (31 states plus Washington, D.C.) and is in some way legal. said that it conducts serious sports betting. “It’s about time; no state has been debating as long as Massachusetts,” Bussman said, explaining that versions of the bill were debated in multiple legislatures before the compromise bill was passed. It’s a big sports state with the Patriots, the Bruins, all of which have been wagered over time, but instead of the bartender taking your bets [illegally] Now you can do it on your mobile phone. ”
Since the Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, there are now only 16 states that have not changed their laws. (PASPA has effectively made sports betting illegal, except in Nevada and a few other states.) Maine, Ohio, Nebraska, and Kansas have legalized sports betting but still have legal markets. is not launched.
Massachusetts has a 20% tax rate on mobile betting, much more reasonable than New Hampshire and New York, which charge 50% on mobile sports betting. But Bussmann believes it will be difficult for the state’s legal industry to compete with the illicit market, especially for college sporting events. The law does not allow betting on college games in the state, except during tournaments like Madness. “College wagering requirements are ridiculous,” he says Bussmann. “It makes no sense at all.”
Another regulatory hurdle is the inability of gaming companies to deduct promotions. Promotion is the cost required to attract customers to a particular app in a competitive environment.
Bussmann adds that “the black market will continue to exist” thanks to the tax and regulatory “handcuffs” that legitimate businesses have to deal with. “A business that tries to do it right not only has the privilege of paying 20% tax, but he sees an additional cost of 30% to 40% over what illegal businesses pay in marketing. It means that
At some point, more states will have to cut taxes and crack down on illegal businesses, Busman says.
When asked if Massachusetts’ new law was a policy failure, Bussman said:
Fitch Ratings analyst Colin Mansfield said Massachusetts’ long-delayed move to legalize sports betting is good for the industry, but big states like California and Texas have Legalization still has a long way to go, not one of its own betting markets.
“We take it positively, but that’s the limit,” says Mansfield. The average American spends $50 a year on sports betting, so when you apply this to Massachusetts’ population of 6.8 million, the state’s potential market size is about $350 million in total gaming revenue. says Mansfield. “It’s not a game-changer for any game company,” he says.
But Massachusetts is a “gaming hot” state and one of the highest per capita lottery ticket purchases, Mansfield said. So if you are a betting man or woman, the odds can be in your favour.
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