Any hope for the legalization of sports betting in Massachusetts this year died last week when the state Senate rejected a measure that would have added sports betting revenue to the convoluted and hurting state budget. An amendment from Minority Leader Bruce Tarr was rejected without a roll call, deepening the mystery of why the legislature didn’t include the potential revenue when the goal was to ease the tax burden for state residents. Tarr’s amendment would have permitted casinos, racetracks and online operators to apply for licenses, using the initial fees to help state businesses devastated by the Covid-19 closures.
Estimates are that the state would have reaped between $20 million and $50 million from the taxes on sports betting. Senators from both partes supported the measure.
“If we don’t do it in this bill, we should absolutely get to work before we end this year to make sure this is done,” Senator Marc Pacheco said. “I am very concerned that we are going to be missing the boat on this.”
The current legislative session runs through early January by the chance of any bill coming up that legalizes sports betting is very slim. According to Senate President Karen Spilka the emphasis will be on getting the budget passed and with no sports betting included, it will not be a priority.
Meanwhile, he gaming companies that control Massachusetts’ three casinos, Plainridge Park, the Encore Boston Harbor and MGM Springfield, told lawmakers that if sports betting is legalized that they want to keep it in-house.
The gaming companies, including Wynn Resorts, MGM and Penn National, sent a letter to legislative leaders who make up a joint committee of three representatives and three state senators tasked with looking at the issue of sportsbook for the Bay State.
“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,” wrote Plainridge Park General Manager Lance George and Encore Boston Harbor President Brian Gullbrants.
The gaming companies have suggested that the legislature should allow each of them to offer retail and online sports wagering and team up with as many as three online or mobile operators.
The companies did leave open the door for Boston-based DraftKings to get a slice of the pie, by suggesting that the Massachusetts Gaming Commission ought to be able to grant an online license to, “an online sports betting operator that is headquartered in Massachusetts and has a majority of their employees located in the Commonwealth.” DraftKings is the only company that fits that description.
The gaming companies warned lawmakers not to dally in legalizing sports betting. In their letter George and Gullbrants wrote, “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. It is imperative that sports wagering expansion in the Commonwealth be done responsibly, with consideration of the framework in place in the existing 22 states that currently allow for legalized sports betting.”
That ship may have sailed.
