MA Casinos Lobby For Complete Control Of Sports Betting

Massachusetts is a strong candidate to legalize retail and online sports betting. There’s still a chance that a joint committee dealing with the topic could act this year or possibly early in the legislative 2021 session.

And Massachusetts has plenty of reasons to legalize sports betting.

The state has been hard hit by COVID-19 and would benefit from the licensing and tax revenue sports betting would produce. Further, two neighboring states, New Hampshire and Rhode Island, have not only legalized sports betting, but they’ve also legalized mobile sports betting. That has resulted in Massachusetts residents making a quick trip across the border to place sports bets legally.

But don’t pencil sports betting in Massachusetts into the victory column just yet. The Bay State still has several hurdles it needs to overcome before joining the ranks of sports betting states.

The Sports Betting Hurdles in Massachusetts

The big fight in Massachusetts will be over market access. Will the state limit sports betting licenses to its land-based casino operators, or will it open up licenses to other entities?

Boston-based DraftKings is pushing for an online-only licensing tier, while the state’s casinos (Wynn, MGM, and Penn National) want all licenses to run through land-based casino operators.

In a recent communication sent to Massachusetts Senate President Karen Spilka, Wynn and Penn National state:

“The public interest, and the jobs and taxes that our facilities support, depends upon a sensible regulatory approach. Those that make actual investments in Massachusetts, assume legitimate risk, and incur costs to provide a service or benefit in the Commonwealth should be enfranchised under this legislation. Conversely, automatic windfalls to industries or interests which assume no new costs, risks or obligations as a result of this type of expansion are not only harmful to the gaming industry’s interests but even more so to overall public interest.”

However, the letter also says they are open to the idea of an online-only license:

“Online only operator: We support the ability of the Massachusetts Gaming Commission to authorize an additional license for sports betting to be granted by the Commission directly to an online sports betting operator that is headquartered in Massachusetts and has a majority of their employees located in the Commonwealth.”

The letter doesn’t detail what the casinos would expect in return – possible examples being a higher fee or tax rate for online-only licensees or perhaps a staggered launch with casinos allowed to launch before online-only operators.

But Wait, There’s More

There’s also the not so subtle indication that the Massachusetts Lottery will oppose any expansion into online gambling that doesn’t include online lottery sales.

And as we’ve reported in the past, the state’s convenience stores and bars are also trying to get in on the sports betting action.

Taken together, Massachusetts has several factions it will need to appease before it even starts to hammer out specific details (more on that in a moment).

Can MA Pass a Sports Betting Law?

Massachusetts isn’t known for its legislative alacrity, particularly on issues that fall into the vice category. And with so much still to be resolved regarding sports betting, Massachusetts’ prospects to pass sports betting legislation this year are dwindling with each passing day.

The 2021 session looks far more promising. However, the previously stated issues aren’t going to disappear just because the calendar flips to 2021.

I suspect Massachusetts will succumb to the will of its casino operators, DraftKings, and the need to find revenue wherever it can as it tries to mitigate the impact of COVID-19 shutdowns on the state budget.

That said, Massachusetts tends to fall into the “get it right” camp, not the “get it done” camp, and the legislative process could drag on far longer than most might expect. The state is a solid contender, but it’s not a sure thing.

What Would A Massachusetts Sports Betting Law Look Like?

For the most part, Massachusetts sports betting proposals have been among the better structured in the US. There’s no indication that Massachusetts is considering prohibiting mobile wagering or forcing the customer to register mobile sports betting accounts in-person.

Still, you can also expect the usual legislative debates to take place:

• Should Massachusetts allow betting on college sports?
• What should the licensing fee and tax rate be?
• How many licenses and skins will the state permit?

If Massachusetts legalizes sports betting, I expect the law to be fair and not impose severe limitations on the market or burden the industry.

Sports Betting Will Keep MA Casinos Competitive

The New England casino market is saturated. In addition to the three Massachusetts casinos in Springfield, Everett, and Plainville, there are two casinos in Rhode Island and two more in Connecticut. And I’m not even including the gambling options in Maine and New Hampshire.

None of these casinos are more than a two-hour drive from one another, and most Massachusetts residents live no more than an hour or so from multiple casinos – I can personally drive to any of the seven casinos in under 90 minutes.

Basically, the New England gambling market is hypercompetitive, and Massachusetts casinos don’t want to concede sports betting to its competition in surrounding states.  

As the Wynn-Penn National joint letter states:

“Sports wagering expansion by our neighboring states substantially affects the competitive posture of the gaming industry here in the Commonwealth and places us at a strong disadvantage, with Massachusetts jobs, revenues and economic activity at stake… A robust brick and mortar gaming industry is just beginning to emerge in Massachusetts. As previously noted, its viability is affected by neighboring state competitive advantages.”