Muradian, Moore back legalizing sports betting

State Rep. David Muradian state Sen. Michael Moore both recently voted to support legislation to legalize sports betting in Massachusetts.

House Bill 5164, An Act regulating sports wagering, was enacted by the House of Representatives on a vote of 151-2 in the early morning hours of August 1 and by the Senate on a voice vote shortly thereafter.

The final sports betting bill represents the culmination of more than two months of negotiation by a six-member conference committee that worked to resolve the differences between earlier versions of the legislation approved by the House and Senate, including the question of whether to allow for betting on college sports. 

Muradian, who sat on the committee, played an instrumental role in ensuring its passage. The compromise proposal allows for betting on professional sports as well as most college games but prohibits betting on Massachusetts college teams unless they are playing in a tournament, such as the annual NCAA March Madness basketball tournament.

“For too long, Massachusetts has been losing out on millions of dollars in revenue to surrounding states that have approved legalized sports betting, despite widespread support to allow for this type of wagering,” Muradian said. “It took some time to work out the details and reach an agreement, but the end result is landmark legislation that protects the athlete and the consumer, while at the same time infusing our economy with an exciting new industry.”

Muradian said legalizing sports betting in Massachusetts will help to create jobs and will allow the Commonwealth to retain millions of dollars in lost revenues that have been flowing to other states that already allow for sports betting.

“For years now, Massachusetts has been falling behind on sports betting, leaving this huge market segment to neighboring states and the black market,” Moore said. “This legislation takes a thoughtful and balanced approach to sports betting, allowing people the opportunity to wager on their favorite professional sports teams while also making sure they’re protected from predatory practices by the strongest consumer protections in the country. I’m pleased to have voted to pass this bill – it’s past time we brought the sports betting market out of the shadows here in the Bay State.”

House Bill 5164 authorizes the placement of in-person wagers at the state’s casinos, racetracks and simulcasting facilities, as well as online wagering through a digital platform or mobile phone app. The agreement calls for in-person sports betting to be taxed at a rate of 15 percent of gross receipts, with online betting taxed at a rate of 20 percent. 

The Massachusetts Gaming Commission will be responsible for overseeing all sports wagering, including the drafting of regulations and the issuance of licenses.

Muradian and Moore both noted that sports betting will generate an estimated $60 million in annual tax revenue for the state, with initial licensing fees expected to provide another $70-$80 million, along with additional revenue when the licenses are renewed every five years. The revenues and fees will be distributed as follows:

• 4 percent to the General Fund;
• 27.5 percent to the Gaming Local Aid Fund;
• 17.5 percent to the new Workforce Investment Trust Fund, which will help provide employment opportunities for vulnerable youth and young adults;
• 9 percent to the Public Health Trust Fund; and
• 1 percent to the new Youth Development and Achievement Fund, which will offer financial assistance to college students, as well as support for after school and out of school activities

House Bill 5164 prohibits the use of credit cards for placing bets. The bill takes additional steps to address the issue of gambling addiction by requiring all mobile apps and digital platforms authorized for sports wagering to prominently display the telephone number and website address for a problem gaming hotline overseen by the Department of Public Health.

The bill also creates a special commission to study the feasibility of allowing sports betting kiosks in retail establishments, and the potential effects this could have on problem gaming or gambling. The commission will report its finding and recommendations by December 31.

More than 30 states have already approved legalized sports betting, including Connecticut, New Hampshire, New York and Rhode Island.