Now that the midterm elections are past, DraftKings is readying a PR campaign aimed at lawmakers in Massachusetts when they begin the 2019 legislative session in January.
Boston-based DraftKings hopes to persuade lawmakers to legalize sports betting, so it can add that to its portfolio, which currently includes daily fantasy sports. DraftKings already operates the sports betting operation in New Jersey.
In a statement the company said, “DraftKings is looking forward to lending our expertise and insight as a sports betting operator when the legislature takes up sports betting in 2019.” It added, “Legal, regulated mobile sports betting provides the best mechanism to not only protect consumers, but to eliminate illegal offshore gambling, ensure game integrity, generate new revenue for the Commonwealth and fuel the growth of Massachusetts’ sports-tech sector.”
The company already has a sports connection. It has commenced a social media campaign aimed at winning some support among the public for sports betting, which reaches a peak of activity during the holidays. In one post it tells the story of a New Jersey resident who won $325,000 betting on the Red Sox. The post implies that the sports fans of the Bay State, home to the New England Patriots as well as the Red Sox, could see similar success stories.
In anticipation that sports betting will be on the legislative agenda, Governor Charlie Baker has been meeting with representatives of sports leagues. A spokesman for the governor commented last week: “The administration believes this is an issue worth analyzing and expects various stakeholders, including the Legislature and professional sports industry, to discuss it next session.”
Leaders in both the House and Senate have said they want to discuss the issue, which was briefly introduced this year. Rep. Joseph Wagner, co-chairman of Joint Committee on Economic Development and Emerging Technologies, which oversees gambling, told a TV news station several months ago that sports betting would be on the “front burner” in the upcoming session.
He has said he wants to move quickly but deliberately.
One of the first issues to be addressed would be what regulatory agency to put in charge of it. The most likely candidate is the Massachusetts Gaming Commission (MGC.) The goal would be to get the regulations in place in time for next year’s football season.
Although legalizing sports betting would undoubtedly raise some tax money, it is unlikely to be a large amount compared to existing casino revenues. In neighboring New Jersey, for example, the first state to legalize sports betting outside of Nevada, operators realized $24 million in profits, of which a percentage went to the state.
The MGC in a white paper issued this year estimated the state can bring in as much as $61.3 million annually in taxes from sports betting.
