Filed by State Senator John Keenan on January 17, the bill — titled An Act Addressing Economic, Health and Social Harms Caused by Sports Betting — aims to impose stricter financial safeguards, ban in-play betting, and more than double the tax rate on digital wagering.
Proposed Bill Seeks to Reshape Massachusetts Sports Betting
If passed, the bill would increase the Massachusetts online sports betting tax rate from 20% to 51%, aligning Massachusetts with New York, which currently holds the highest rate in the country. Keenan had previously attempted a similar tax hike in 2024 via a budget amendment, but lawmakers ultimately rejected the proposal.
The new bill also seeks to introduce affordability checks, preventing individuals from wagering more than $1,000 per day or $10,000 per month without demonstrating financial stability. These checks would ensure that a bettor’s total wagers do not exceed 15% of their available bank balance — making Massachusetts the first state in the nation to implement such a safeguard.
The proposed legislation has drawn comparisons to the federal Supporting Affordability and Fairness with Every Bet (SAFE Bet) Act, introduced last year by Rep. Paul Tonko and Sen. Richard Blumenthal. Like Keenan’s bill, the federal proposal called for tighter regulations on advertising, affordability checks, and restrictions on certain betting practices.
“This bill is an effort designed to prevent harm before it occurs,”
Tonko said at a press conference regarding the SAFE Bet Act.
In addition to financial restrictions, the Massachusetts proposal would significantly alter the way sportsbooks operate. In-play betting — a popular feature allowing bettors to wager on live games — would be eliminated, and operators would be barred from compensating VIP hosts based on customer wagers or deposits.
Advertising regulations would also become more stringent, with the bill proposing a ban on sports betting ads during televised sporting events.
The legislation’s responsible gambling initiatives would see a boost as well. MA sportsbooks would be required to double their contributions to problem gambling programs from $1 million to $2 million annually. The Massachusetts Gaming Commission (MGC) had previously explored similar advertising restrictions but determined that enforcing them on nationally televised broadcasts would be difficult.
Regulatory Scrutiny Intensifies as Operators Face Penalties
While lawmakers push for stricter oversight, Massachusetts regulators continue cracking down on operators failing to comply with existing rules. The MGC recently approved a fine against PENN Sports Interactive after its sportsbook, ESPN BET, accepted 249 illegal bets on non-Division I college basketball games earlier this year.
The company refunded losing bettors but allowed winners to keep their earnings — a decision that Commissioner Eileen O’Brien took issue with.
“According to our statute, these all should have been voided,”
O’Brien argued.
“The monies, winnings, everything should have been fixed.”
The MGC is also investigating Fanatics Betting and Gaming for a similar violation, in which the operator accepted 83 illegal bets on a Boston College vs. Michigan State football game. Massachusetts law prohibits betting on in-state colleges unless they are competing in a national tournament.
These enforcement actions follow a series of penalties against operators in 2023, including fines against DraftKings for accepting illegal bets on unapproved UTR Pro Series tennis events. The regulatory push reflects the state’s commitment to maintaining one of the strictest sports betting environments in the country — a stance that could become even tougher if Keenan’s bill moves forward.