MA Sports Betting Inaction: Frustrating Gov. Charlie Baker

Massachusetts was at the forefront of daily fantasy sports legalization, but the Bay State is dragging its feet when it comes to sports betting.

During a WEEI interview last week, Gov. Charlie Baker expressed his frustration at the lack of progress the state has made.   

When asked about the prospects of legal sports betting in Massachusetts coming to the state, Baker called it “a very good question.”

“I bring this issue up on a relatively frequent basis with my colleagues in the Legislature and have not made much progress on it,” Baker said. “You’re reminding me; I will bring it up again.”

For its part, the legislature is dealing with multiple proposals, and as BettingUSA.com has discussed in the past, several competing stakeholders are lobbying for preferential legislation.

Surrounded by Sports Betting

It would be a serious blow if Massachusetts can’t pass sports betting legislation this year, as it finds itself increasingly surrounded by states with legal sports betting.

Rhode Island and New Hampshire are both offering online sports betting – and pulling plenty of Massachusetts residents across the border to place bets.

To the west, New York has retail sports betting and is considering online sports betting expansion.

 Elsewhere, Maine was a governor’s veto away from legalizing sports betting, and Vermont and Connecticut are candidates to pass sports betting expansion bills in 2020.

What’s the Hold-Up?

As noted above, Massachusetts has a number of interested stakeholders that all want a piece of the sports betting pie.

• The Massachusetts Lottery has indicated an interest in running sports betting and has all but demanded the authorization of online lottery sales should the state legalize any other form of online gambling.
• The state’s three casino operators want sports betting licenses, retail and online, tethered to their brick-and-mortar businesses.
• Boston-based DraftKings wants the state to approve online sports betting and allow online operators to apply for an independent online license.
• A coalition of Massachusetts’ bars and restaurants licensed to offer keno are pushing for inclusion in any sports betting legislation.

The Sports Betting Opportunity in Massachusetts

 Massachusetts is the 14th most populous state in the country, with just under seven million residents. But what makes the state a sports betting prize is the disposable income of residents and their propensity to spend a not-insignificant amount of that money on gambling.

The state ranks third in disposable income, and based on its $763 average spend per capita, Massachusetts is the most successful lottery state in the nation.

That’s why, despite a modest population, many analysts see Massachusetts as brimming with untapped potential, and one of the most important sports betting states.

Right now, any sports betting dollars Massachusetts residents are spending head to neighboring states or offshore operators. Scraps of evidence indicate that a significant percentage of Rhode Island sports betting revenue is coming from Massachusetts residents.

This out-of-state spend was a big reason Massachusetts legalized casino gambling in 2011. The state was exporting the economic benefits of gambling to Connecticut and Rhode Island as its residents crossed the border to visit casinos. At the same time, Massachusetts was importing the social harms that stem from gambling when those residents returned home.

Essentially, Massachusetts residents are driving to another state to gamble, and that state is benefitting from the revenue. But, when they need treatment for problem gambling or declare bankruptcy, it’s Massachusetts that absorbs the cost.

A similar situation will continue to play out with sports betting until Massachusetts passes legislation. And this also should act as a clarion call to lawmakers in every state to include responsible gambling and problem gambling funding in legislation.