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Adam Roarty is a journalist covering sports betting, regulation, and industry innovation for CasinoBeats. His coverage includes tax increases in the UK, covering breaking stories in the ever-evolving landscape of US betting such as the...
Read Full BioLawmakers in Massachusetts have advanced a bill that proposes several restrictions on sports betting. The bill would ban prop and in-play bets, set daily and monthly limits, and raise the tax on gambling companies.
SB302 was reported favorably by the committee and referred to the Senate Ways and Means Committee on Monday. Sen. John Keenan, the bill’s sponsor, says it takes aim at the “most addictive form of bets.”
It states that “sports wagering shall include neither in-play bets nor proposition bets.” Keenan added that in-play bets in particular hold a risk of leading to gambling problems.
He added, “They are quick, they’re easy to place, and they provide instant gratification if somebody should win — or a desire to respond to it, if they should lose, perhaps by doubling down.”
Sportsbooks Oppose In-Play Betting Ban & Tax Hike
In-play bets make up between 50 to 60% of all wagers. The Sports Betting Alliance (SBA) has opposed limiting bet types, arguing that they allow operators to spot potential spot-fixing, and that prohibition will drive gamblers to unregulated platforms.
In Ohio, the state struck a deal with the MLB and sportsbooks to limit micro bets, for example, on the next pitch, to $200. New Jersey lawmakers are also considering banning micro bets, but a full ban on all in-play bets would be highly restrictive.
The SBA and its members, which include Massachusetts-based DraftKings, also oppose the bill’s proposal to raise taxes from 20% to 51%. The new rate would put the state in line with the top taxing states in the country, New York, New Hampshire, and Rhode Island.
Prop Bet Bans Divide Opinion
The proposed ban on all prop bets is also an extreme measure. Many other states have banned prop betting for college sports, with the NCAA urging for a blanket ban across the US.
Several betting scandals in the NBA, NCAA, MLB, and, most recently, the MLS have led lawmakers and sports leagues to call for further restrictions on player performance-based bets.
Opponents of bans again argue that they risk sending bettors to offshore platforms. DraftKings CEO Jason Robins said a blanket ban would be “crazy.”
Not all states are moving towards prohibition. In Missouri, the state rejected a proposal to restrict college prop betting in its newly established sports betting market. In Washington, lawmakers have passed a bill to allow the markets in the state, albeit excluding in-state college prop betting.
The debate rages on, while some states are moving to ban the bets, more and more prediction market platforms are offering them. Offshore betting sites also have no plans to start removing bet types that prove popular with users.
New Limits for Gamblers & Sportsbooks
The bill would also prohibit gamblers from suffering excessive losses, limiting wagers to $1,000 per day or $10,000 per month. An exception may be made if the operator has confirmed that the daily or monthly amounts wagered do not exceed 15% of the gambler’s bank balance.
While this limit is designed to protect players from gambling beyond their means, Massachusetts has also moved to require sportsbooks to inform bettors when — and why — they are limited.
Massachusetts Gaming Commission Chair Jordan Maynard said, “We are the first jurisdiction in the United States to take up this issue and to continue to study this issue.”
While companies have insisted that limiting winning customers is not a common practice, Maynard believes transparency is essential. He added, “The operators keep telling me they’re not limiting many people… if they’re not limiting many people, they should be able to tell people why they’re limiting them.”
The Commission approved the rule by a unanimous 5-0 vote last week. American Bettors’ Voice, a non-profit with the goal of giving bettors a fair say in the gambling industry, consulted with the MGC about the new directive. The group says it is in discussions with other states to introduce similar measures.
The wide-reaching bill still has some way to go before enactment, but if it passes, it could provide more insight into the effects of restricting the sports betting market. Other states will undoubtedly be monitoring Massachusetts.
