The Massachusetts Senate has approved a measure that would permit the state to conduct legal wagering on sporting events, but restrict many forms of promotional activities.

This measure would add a clause to Massachusetts law explicitly permitting sports betting, both online and in person, to not be considered a form of illicit gambling. The measure would also forbid “advertising, marketing, and branding through certain specific promotional items that, as determined by the commission, are likely to increase the likelihood of problematic gambling, which may include giveaways, coupons, or promotional betting credits.”

Furthermore, the measure would prohibit marketing during live sporting events, and only allow online marketing where 85% of the audience is “reasonably expected to be 21 years of age or older.”

The measure would impose a 35% revenue tax on online sports betting and a 20% revenue tax on retail sports betting.

Any existing gambling license holder would be eligible for a Category 1 sports betting license, provided they pay a $5 million application fee. Currently, there are three gambling license holders in the state: Wynn’s Encore Boston Harbor, MGM’s Springfield casino, and Penn National Gaming’s Plainridge Park casino.

Every operator will be able to provide retail and internet betting services.

The state lottery board will issue up to six Category 2 internet sports betting permits through a “competitive application procedure.” These authorized entities will also have to pay a $5 million application charge.

Furthermore, Massachusetts Governor Charlie Baker was told to negotiate a new Category 3 gaming agreement with the state’s Native American tribes, which will also allow for sports betting.

Gamblers will also be banned from wagering on college sports.

After reviewing the amendment, the Senate decided to replace Senate Bill 2844 with House Bill 933, which had passed the House in 2021, and replaced all text of Senate Bill 2844 with House Bill 933. The senators then voted to approve this new version of House Bill 933.

As the House has already passed a version of House Bill 933, a joint conference committee of both houses will now convene to develop a bill that both houses can approve.

The initial version of the House bill did not include a ban on promotions or college betting and allowed land-based operators to own three mobile skins and an unlimited number of online-only licenses.

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