Massachusetts Governor Charlie Baker wants the legislature to vote on sports betting before the summer recess.
There are currently about a dozen bills that could be called sports betting bills that have been given over to the Joint Committee on Economic Development and Emerging Technologies. One of them is a bill that Baker himself proposed in January. None have been assigned hearing dates.
The governor, obviously frustrated at the snail’s pace of the bills, used the occasion of a ribbon cutting at DraftKings’s 105,000 square foot new headquarters in Boston to give the legislature a broad hint.
Baker commented, “Our preferred option would be that this is something the Legislature takes up before they break for the summer, which will probably be somewhere around August.” He added, “That would be the timeline we think makes sense, because that would land before the start of the next NFL season.”
Recently the governor issued this statement: “Expanding Massachusetts’ developing gaming industry to include wagering on professional sports is an opportunity for Massachusetts to invest in local aid while remaining competitive with many other states pursuing similar regulations.” He added, “Our legislation puts forth a series of commonsense proposals to ensure potential licensees are thoroughly vetted and safeguards are in place to protect against problem gambling and legal activity.”
Baker’s bill would allow interactive sports betting companies, such as DraftKings, to offer online sports betting, irrespective of physical casinos such as the MGM Springfield, or the Encore Boston Harbor. DraftKings already offers this service in several other states where sports betting is legal.
DraftKings, which was founded in Boston and employs 600 mainly Bay State workers, is promoting such a bill.
Baker isn’t so optimistic that he included revenue from sports betting in his FY 2019-20 budget. He also isn’t using that as a bludgeon to spur on the legislature as Rhode Island Governor Raimondo used to get sports betting approved in her state.
But he has posted projections that sports betting could net the state $35 million I taxes, if his 12.5 percent rate is adopted.
One of the bills includes a 0.25 percent “integrity fee” for the professional sports leagues, something that few states have adopted.
Under Baker’s bill no one under 21 could wager, and only betting on major league sports would be allowed. Wagers on college, high school, E-sports and amateur sports would be prohibited. Any kind of athlete, coach, referee or sports employee would not be allowed to bet.
DraftKings’s CEO Jason Robins refers to the estimated $150 billion black market in sports betting in the U.S. He told CDC Gaming Reports, “That just shows people want it, so why not create a safe, legal environment, bring in tax dollars for the state, and create great jobs and opportunities for employers like us?”
