Gov. Charlie Baker unveiled a proposal on Thursday that would legalize and tax betting on expert sports on-line and at casinos in Massachusetts.
Baker, a Republican, announced that he would file legislation allowing the Massachusetts Gaming Commission to license the state’s three casino operators to provide each on-site and online betting.
The proposal would also allow other online entities, like daily fantasy sports operators, to be licensed for sports wagering.
“Our legislation puts forth a series of commonsense proposals to ensure possible licensees are thoroughly vetted and safeguards are in location to shield against problem gambling and illegal activity,” Baker said inside a statement.
A 2018 U.S. Supreme Court ruling overturned federal law prohibiting states from legalizing sports betting.
Baker’s proposal would put a 10 percent tax on sports wagering inside casinos, while online bets would be taxed at 12.5 %. The gaming commission, which regulates casino gambling, would oversee sports betting.
Administration officials estimate the taxes would raise $35 million in the state’s next fiscal year, with the proceeds from the taxes going toward nearby aid for cities and towns.
Daily fantasy sports contests, already legal but untaxed in Massachusetts, would also be subject towards the 12.five percent tax to “level the playing field” below Baker’s plan.
The governor’s proposal would not allow betting on college sports or other amateur sporting events.
James Chisholm, director of global public affairs for Boston-based every day fantasy sports operator DraftKings, known as Baker’s strategy “thoughtful,” and said that the company looked forward to working using the governor and lawmakers to approve a bill within the coming months.
“Legal, regulated mobile sports betting offers the very best mechanism to not just shield consumers, but to get rid of illegal offshore gambling, make sure game integrity, generate new income for the Commonwealth and fuel the development of Massachusetts’ sports-tech sector,” Chisholm said inside a statement.
Massachusetts lawmakers have so far taken a cautious approach to sports betting. Home Speaker Robert DeLeo asked a committee chaired by Rep. Joseph Wagner, a Chicopee Democrat who was one of the chief architects of the 2011 Massachusetts law that legalized casino gambling, to study the possible ramifications of legalizing gambling on sports.
A bill comparable in many respects to Baker’s proposal was filed within the state Senate earlier this week by Sen. Brendan Crighton, a Democrat from Lynn.
Baker told WGBH-FM on Thursday that his proposal was modeled after a law in New Jersey, the very first U.S. state to legalize sports betting following the Supreme Court ruling. New Jersey officials reported almost $1 billion in sports wagers inside the very first six months of the law.
Several other states including Delaware, Mississippi, Pennsylvania, Rhode Island, and West Virginia also passed laws last year and legislation is being regarded as in several other states.
Twin River Casino in Lincoln, Rhode Island became the first in New England to accept bets on professional sports in November.
Massachusetts’ first resort casino, MGM Springfield, opened final summer time. The state’s only slots parlor, in Plainville, has been operating since 2015.
Marlene Warner, executive director from the nonprofit Massachusetts Council on Compulsive Gambling, stated the organization will urge lawmakers to set aside income for treatment and prevention of gambling addiction, and take other actions to prevent a spike in compulsive gambling if betting on sports becomes legal.
Research suggests about 2 percent from the state’s residents possess a gambling disorder, based on Warner, and an additional 8 percent are at danger.
“Anecdotally, there are lots of individuals suffering and hitting crisis points,” she added.