Massachusetts sports betting market is facing a "major reshuffle," with Senator John Keenan's Bill S.302 reappearing in the 2026 legislative session, proposing a comprehensive adjustment to online sports betting. The bill, initially introduced last year with lukewarm response, now returns with heavy provisions such as tax rate increases, betting type restrictions, and enhanced regulation, aiming to address existing industry issues. If passed, Massachusetts will join the ranks of the most strictly regulated sports betting markets in the US, completely rewriting the operational models of operators and the betting experience of players. Relevant US sports betting legislation compliance interpretations and cases can be referenced on the PASA official website.
Core Adjustments: Tax Rate Soars to 51%, Betting Types Strictly Limited
The core provisions of the bill directly target key industry segments, with unprecedented adjustment intensity:
Significant tax increase: The tax rate for online sports betting will soar from the current 20% to 51%, tying with New York State for the highest in the US, a heavy blow to operators who previously considered Massachusetts' tax rate competitive;
Limited betting types: The bill proposes to ban in-play and proposition bets, two popular betting modes among players, retaining only traditional pre-match betting to curb aggressive high-frequency, large-amount betting modes;
Simplified market logic: Supporters believe that limiting betting types will standardize the market and reduce the risk of excessive betting by players; however, opponents worry that this will reduce market flexibility and decrease user attractiveness.
Industry Impact: VIP Programs Scrapped, Advertising Promotion "Braked"
The bill also proposes disruptive changes to operators' marketing and customer service models:
Comprehensive reform of VIP programs: Prohibiting any compensation mechanisms based on user betting amounts or deposits, meaning that operators' common high-end customer exclusive services and personalized offers will be completely eliminated, aimed at preventing the "squeeze" practices that induce high-risk betting;
Advertising ban implemented: Prohibiting the placement of sports betting ads during televised sports events to avoid excessive exposure of betting content, especially during high-profile events, reducing the public's "normalization" perception of betting;
Pro and con debate: Supporters claim these measures will protect consumers, especially minors; critics argue that VIP programs are important customer service tools, and the advertising ban will affect operators' brand promotion and market growth.
Regulatory Upgrade: Economic Checks + Increased Funds Strengthen Responsible Gambling
The bill emphasizes enhancing player protection and regulatory efforts, introducing several stringent requirements:
Economic capability checks: When a player's betting exceeds $1000 per day or $10000 per month, operators must conduct a financial assessment, allowing betting only if the amount does not exceed 15% of the player's available bank deposits, preventing gambling beyond economic capabilities;
Increased regulatory funds: The annual budget for the sports betting control fund will be increased from $1 million to $2 million, providing more substantial financial support for regulatory work;
New research requirements: Conducting specialized research to investigate the association between sports betting and the risk of attempted suicide and self-harm among gamblers, with operators required to provide anonymous detailed data on player activities to support the research.
The final vote on the bill is due by March 6, and it has already sparked widespread industry debate. Supporters believe it achieves a balance between regulation and accessibility, while opponents fear that stringent provisions will stifle industry innovation and growth vitality.
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This article is from "PASA-Global iGaming Leader" gambling industry news channel:https://t.me/pasa_news
Original in-depth gambling channel:https://t.me/gamblingdeep
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