The launch of legal sports betting in the Bay State will happen before the calendar flips to February, barring any unforeseen difficulties.
Massachusetts Gaming Commission Executive Director Karen Wells said Thursday that they are finalizing the plans for the start of in-person sports betting at the state’s three casinos.
The plan for sports betting in Massachusetts is that it will officially begin on January 31 at the Encore Boston Harbor, MGM Springfield, and Plainridge Park Casino. The state is targeting early March to launch online sports betting sites.
Wells told commissioners during a public meeting that regulators are “on target” for a final compliance check and walkthrough at the brick-and-mortar facilities on January 30, followed by the full launch the next day. There is also some coordinating of grand openings of sportsbooks and whatnot that needs to be done so gaming commissioners can attend.
“Everything seems to be on target,” Wells said. “But… I'm always cautious. So, as a caution, things have to be not only tested in the lab but verified on-site. We do need to make sure that everything is in order before approving the launch.”
Stay on target
The comments provide more clarity and confirmation that legal sports betting in Massachusetts will start by the end of this month, well in advance of this year’s Super Bowl, which is crucial for bookmakers. While residents 21 and up will have to travel to one of the three casinos to place a legal wager, they’ll at least have that option, as opposed to nothing, which is what they have now.
The Massachusetts Gaming Commission (MGC) has been meeting regularly to try to license sportsbook operators and firm up the wagering rules. That work continued on Thursday, as BetFanatics was found suitable for one of the licenses to run mobile sports betting sites, and regulators reviewed another host of regulations.
There was also a lengthy debate among commissioners about whether operators should be allowed to deduct free bets and other promotions from their taxable revenue.
As spelled out in the state’s law, retail sports betting revenue will be subject to a 15% tax rate in Massachusetts, while online wagering receipts face a 20% levy. What is not spelled out is whether the deductions can be applied, as they are in other states.
Commissioners discussed whether they could interpret the law at all, and, in a divided 3-2 vote, determined they could. A decision on the promo issue itself will come at a later date.
After much debate, the Massachusetts Gaming Commission voted 3-2 that it has the ability to decide whether sportsbook operators can deduct free bets and other promotions from their taxable revenue. No decision on the issue itself yet, though. https://t.co/MP5biGZlbX
— Geoff Zochodne (@GeoffZochodne) January 12, 2023
Still, the issue arose after some prodding by operators.
“Including promotional gaming credits would result in the Commonwealth levying taxes on totals that do not reflect actual revenue earned by a sports wagering operator,” DraftKings said in a November letter to the commission. “Excluding promotional credits is the fairest way to tax sports wagering operators, and is the policy chosen by a significant number of online sports wagering states.”
But the MGC opted to punt a decision on promos until another day, albeit probably one soon, as they are running out of time before the start of legal sports betting in the state.
“I'm reserving whether or not I believe it's taxable or not taxable, phased in, phased out, capped by percentage,” Commissioner Jordan Maynard said. “I'm not ready to make those decisions today. I just believe we have the right to interpret a statute that's not clear on language.”
