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Massachusetts legislators are reviewing Senate Bill 302, a comprehensive sports betting reform proposal that would more than double the state’s tax rate and establish some of the strictest betting safeguards in the United States.
The legislation, formally titled “An Act Addressing Economic, Health and Social Harms Caused by Sports Betting,” was filed on 16 January 2025 by Senator John F. Keenan (D-Norfolk and Plymouth), along with Representative Lindsay N. Sabadosa and Senator Patricia D. Jehlen. The bill has been assigned Senate Docket No. 1657 and referred to the Joint Committee on Economic Development and Emerging Technologies.
Proposed Tax Increase to 51%
The bill’s primary provision would raise Massachusetts’ online sports betting tax rate from the current 20% to 51% on gross gaming revenue. This increase would place Massachusetts in the top tier of state sports betting tax rates, matching New York, New Hampshire and Rhode Island.
Senator Keenan previously attempted to introduce a similar tax increase in May 2024 through Amendment 828 to the state budget bill, but the proposal was rejected by the Senate. Since launching legal sports betting in January 2023, Massachusetts has collected approximately $213.5 million in total tax revenue from sports wagering operations.
The Massachusetts Gaming Commission reported that online sportsbooks accepted $764 million in wagers during November 2024, generating $79.5 million in taxable revenue. Under the current 20% rate, the commission collected a monthly record of $16 million in tax revenue.
Betting Category Restrictions
Senate Bill 302 would prohibit two categories of sports betting currently available in Massachusetts: in-play wagering and proposition bets. While the state already restricts prop bets involving collegiate athletes, the new legislation would eliminate all proposition betting and limit bettors to traditional pregame wagers only.
This restriction would remove some of the most popular betting options currently available to Massachusetts bettors through licensed operators including DraftKings, FanDuel, BetMGM, Caesars and Fanatics.
Affordability Checks and Daily Limits
The bill introduces mandatory affordability assessments for bettors who exceed $1,000 in daily wagers or $10,000 in monthly wagers. These checks would require operators to verify that a bettor’s total monthly betting activity does not exceed 15% of their available bank account balance.
If enacted, Massachusetts would become the first US state to mandate affordability checks for sports betting. The provision is modeled after the federal Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, introduced by Representative Paul Tonko and Senator Richard Blumenthal in September 2024.
The affordability check mechanism would require operators to access and verify financial information for qualifying bettors, raising questions about data privacy and implementation logistics that would need to be addressed in regulatory guidance.
Advertising and VIP Programme Changes
Senate Bill 302 would ban sports betting advertisements during televised sporting events, addressing concerns about gambling exposure during broadcasts. The Massachusetts Gaming Commission previously discussed similar advertising restrictions but determined they would be challenging to enforce for nationally televised events.
The legislation also targets VIP programmes operated by licensed sportsbooks. Under the proposal, operators, directors, officers, employees, affiliates and subcontractors would be prohibited from receiving compensation based on a percentage of customer wagers or deposits. This provision would eliminate commission-based compensation structures commonly used for VIP host positions at major sportsbooks.
Increased Licensing Fees and Problem Gambling Funding
The bill would double the annual licensing fee for online betting operators from $1 million to $2 million. Additionally, operators would be required to increase their annual contributions to problem gambling initiatives from $1 million to $2 million.
The legislation includes provisions requiring operators to share anonymized data with researchers studying gambling addiction and potential correlations with suicide attempts and self-harm. The Public Health Advocacy Institute, which also supported the federal SAFE Bet Act, has endorsed Keenan’s proposal.
Senator Frames Bill as Public Health Measure
Senator Keenan has positioned the legislation as a public health initiative, drawing parallels between gambling addiction and the opioid crisis during a November 2024 legislative hearing.
“When I voted to legalize sports betting, I never thought it would become what it is,” Keenan stated during the hearing. He has since expressed that he “deeply regrets” his role in legalizing online sports betting in Massachusetts.
The senator’s comments reflect growing concern among some lawmakers about the rapid expansion of sports betting and its potential social costs since Massachusetts launched its market in early 2023.
Industry Opposition
The Sports Betting Alliance, representing major operators including DraftKings, FanDuel and BetMGM, has opposed the legislation. Industry representatives argue that Massachusetts already maintains some of the nation’s strictest sports betting regulations and that the proposed changes could drive bettors toward unlicensed offshore platforms.
Current Massachusetts regulations already prohibit betting on in-state college teams except during tournaments, ban credit card deposits for sports betting accounts, and require extensive operator vetting. Industry analysts suggest the combined impact of tax increases, betting restrictions and affordability checks could reduce promotional spending, limit market growth and potentially force consolidation among smaller operators.
Legislative Timeline
The Joint Committee on Economic Development and Emerging Technologies has extended its reporting deadline for Senate Bill 302 to 6 March 2026, allowing additional time for review and public hearings.
Massachusetts operates under a two-year legislative session, meaning the bill must pass both the Senate and House of Representatives and receive approval from Governor Maura Healey before January 2027 to become law. Governor Healey supported the original sports betting legislation passed in August 2022 but has not commented on the specific provisions in Senate Bill 302.
Massachusetts launched legal sports betting with retail wagering in January 2023 and online betting in March 2023. The state has consistently ranked among the most restrictive sports betting jurisdictions in the country, and the passage of Senate Bill 302 would further establish Massachusetts as the nation’s most regulated sports betting market.
Source: Massachusetts State Legislature
