The Massachusetts Gaming Commission (MGC) put out the word that potential sportsbook operators and vendors had until August 31 to send a letter of intent which marked interest in being licensed.
More than 40 companies issued a letter.
The list includes industry giants like DraftKings and local participants like the Massasoit Greyhound Association, which owns Raynham Park track.
Among the other names: FanDuel Group, Caesars Sportsbook, FanLogic, Mohegan Digital, Penn Sports Interactive, Sterling Suffolk Racecourse, Fubo Sportsbook, BetMGM, Resorts World Bet and Seminole Hard Rock Digital.
At a webinar earlier this week, a sports betting specialist said none of the 12 original companies jumped out as surprising.
“It seemed to be a kind of good combination of the folks who we know are going to be playing in this, and then online operators who have bid in other states,” said Kevin Conroy of Foley Hoag.
Sports betting Attorney Daniel Wallach told MassLive that because Massachusetts offers seven untethered digital sports wagering licenses—companies do not need to be connected to a casino or racetrack—the market may allow for more start-ups.
“This is one of the few states that provides a point of entry for start-up companies,” Wallach said. “Massachusetts will attract your fair share of start-ups and smaller companies that are looking for a foothold in the online gaming component.”
Massachusetts allows three different license categories:
Category one includes the three casino and slot parlor operators, which can offer in-person wagering and digital betting through two individually branded mobile applications.
Category two covers the live horse racing tracks and simulcasting facilities—Raynham Park and Suffolk Downs—with only a single mobile application.
Category three allows for up to seven licenses to be issued to companies that offer sports betting through a mobile application or digital platform. This will be the most competitive.
The MGC has to regulate the industry, and that could take time until the state opens up to accept wagers. The notice of intent forms is just the first step of an arduous process.
The commission was scheduled to provide an update on September 8. MGC attorneys say they have identified 225 potential topics that will require regulations, from how a bet is placed to the technical aspects of online wagering.
When it comes to sports betting and colleges, Massachusetts could learn a thing or two from Nevada. The gaming capital state banned wagers on college teams from Nevada schools until 2001, for much the same reason Massachusetts banned such bets in its regulations for sports betting.
The Nevada ban, dating back to the 1950s, was predicated on the possibility that nefarious criminals could influence the game results through bribes or worse, coercion.
After four months of debates in 2001, the Nevada Gaming Commission insisted they could withstand any inquiry in or out of state.
Nevada sportsbooks have made it a point to contact authorities when unusual betting patterns indicated someone was trying to tinker with a game’s outcome.
Brendan Bussmann, gaming industry analyst with Las Vegas-based B Global, indicated the Massachusetts ban could be a negative for the industry.
“The ban on local colleges and universities does nothing to protect any student-athlete that is based in Massachusetts,” Bussmann said. “It only enables the offshore books to continue to take these wagers.”
Legislators continue to get tripped up over the college wagering issue, making it more complex than it needs to be, he said. “States like Massachusetts, Nebraska, New Jersey and others have put similar limits in place to try to regulate the market. While there is money being left on the table, this should be about integrity, and the right thing to do is to create a fully regulated market.”
The MGC has been preparing for this moment for several years, and the Legislature has debated this for several sessions. “While the bill is far from perfect, it does provide strong properties like Encore Boston Harbor and MGM Springfield to bring forward a strong sportsbook for a state that loves sports,” Bussmann said.
Regulators have laid out a solid plan to implement sports betting over the next several months, he said. “It has the opportunity to beat out jurisdictions to advance this effort and allow wagers in state on the Patriots, Celtics and Red Sox, among others. This will turn into a strong market in the northeast corridor and recapture some of those dollars that are currently going to other states.”
Massachusetts tax rates are higher than Nevada’s but lower than some neighboring states. State law calls for a 15 percent tax on the gross gaming revenue of in-person brick-and-mortar sportsbooks and revenue from fantasy sports contests but 20 percent on revenue from mobile wagering which will be where most bets are placed. New Hampshire and Rhode Island charge 51 percent.
By comparison, Nevada taxes at a rate of 6.75 percent, with other fees equaling about 1 percent.
