Massachusetts Sports Betting Legislation: News, Start Date, and Details

Big news out in the Bay State. Massachusetts Gaming Commission (MGC) Executive Director Karen Wells announced that online sportsbooks can officially open their virtual windows and start taking bets on March 10th, The timing will please college basketball fans as it is right in the middle of Conference Championship week, two days ahead of Selection Sunday and four before the actual tipoff of March Madness.

The MGC has approved and licensed 11 books thus far; Barstool, Bally Bet, BetMGM, Betr, Betway, Caesars, DraftKings, Fanatics, FanDuel, PointsBet, and WynnBet. All but Betway are expected to be ready for the launch.

The books still have a couple more hurdles to pass. On February 23rd, the MGC will finalize the licensing, pending the books addressing any tech issues that arise via an independent testing lab hired by the state. Once that is set, it is full speed ahead.

For those who may not be up to date with the latest news, the sports betting industry kicked off in Massachusetts on January 31st, as three physical locations, MGM Springfield Casino, Encore Boston Harbor Casino in Everett, and Plainridge Park Casino are up and running. So far so good as few major issues have arisen. One that did pop up is that two of the casinos briefly had betting markets up on in-state college games, in violation of the new rules. Plainridge Park posted odds on a Merrimack men’s basketball game and Encore had a BC women’s basketball game on the board. Both self-reported and neither is expected to face punishment.

More physical sportsbooks and online operators are expected as the state can license up to eight. MGC has provided three categories of sports betting licenses.

● Category 1: Retail sportsbooks such as the casinos that have already opened plus another one that can open in the eastern part of the state. The casinos can then partner with up to two online sportsbooks each, who in turn must get Category 3 licenses
● Category 2: Racetracks and Off-Track Betting (OTB) establishments. They can each partner with one Category 3 licensed online book. There are two eligible racetracks, but neither is ready to open up for sports betting just yet. Raynham Park has partnered with Caesars and is in the process of building a sportsbook that they anticipate will launch in the spring. Suffolk Downs has no partnerships as of yet.
● Category 3: Online sportsbooks. Massachusetts will allow up to seven books that are not affiliated with physical locations.

The state will tax retail sportsbooks at a 15% rate, with online books getting hit at 20%. That falls just above the 13% rate in New Jersey but well below the 51% that the state of New York charges. Massachusetts projects $60 million in annual revenue. Individuals with sports betting profits over $5000 will be subject to withholding from the sportsbooks. The profits are treated as “other” income but taxed at the same rate as ordinary income which is 5% in Massachusetts.

Other states ban in-state college sports betting, including New Jersey and Garden State has one of the more gambling-friendly reputations in the country. Massachusetts does stand out in a couple of other areas. The Bay State restricts gambling on events that are “judged”, such as gymnastics, and it is also banned on ESports. Betting is offered on “special” events such as the Oscars. Massachusetts has also set out strict guidelines on advertising in regard to the terminology used and whether it is allowed at all in certain circumstances. Sportsbooks have to be careful using terms such as “free”, specifically they can not “imply or promote Sports Wagering as free of risk in general or in connection with a particular promotion or Sports Wagering offer” or “describe Sports Wagering as “free”, “cost-free” or “free of risk” if the player needs to incur any loss or risk their own money to use or withdraw
winnings from the Wager”.

The books have adjusted to this as while Massachusetts is perhaps the strictest state thus far as advertising goes, they are not alone. Typical bonus offers involve the player placing an initial wager, then getting credited with bonuses in the amount equal to the initial wager if it ends in a loss. Sportsbooks now refer to it as “bonus bets” or “bet credits” as opposed to “free bets”. It is important to note that the value of this type of bonus is real, just not equal to the headline amount. A good rule of thumb is that a bet credit is worth about 60% of the “headline” dollar amount, and a bet credit based on a contingency of losing an initial bet is worth about 60% of that 60%. Thus the typical offer is still worth roughly 36% of the headline, not an insignificant sum.

Bay State residents can wager on all their favorite teams right now at the three retail locations, and very soon at the online sportsbooks. The NBA trade deadline has come and gone, and the Celtics remain the betting favorites to take the NBA title as per these odds from BetMGM.

● Celtics +350
● Suns +450
● Bucks +550
● Nuggets +700
● Clippers +1000
● Sixers +1200
● Grizzlies +1400
● Warriors +1500
● Mavs +1600

Boston still has the NBA’s best record, though the Bucks have gotten healthy and caught fire and now sit just a game back. Plus the Celtics face sometimes with Jaylen Brown on the sidelines with a facial fracture. There is a big premium on finishing with the top seed in the East as a big drop-off in quality exists between the current third-seed Sixers and the four seed, most likely the Cavaliers. The advanced stats sites still suggest the Celtics have decent value even as favorites as FiveThirtyEight gives them a 24% shot at the title, implying +317 odds, while ESPN’s Basketball Power Index has them at 29.6%, which equals +238

The Bruins share TD Garden with the Celtics and likewise share a perch atop their league. Here too, BetMGM prices Boston as the favorites, in this case in Stanley Cup futures.

● Bruins +450
● Hurricanes +650
● Avalanche +700
● Maple Leafs +1000
● Lightning +1200
● Golden Knights +1400
● Oilers +1500
● Rangers +1500
● Stars +1600
● Devils +1600

The Bruins remain roughly on pace to set all-time NHL season records in wins and points, though it would not shock to see them manage the minutes of their veteran-laden roster down the stretch and prioritize health over chasing history. Again, FiveThirtyEight does not find them overpriced as they give Boston a 25% shot to win the title, implying anything better than +300 has theoretical value. The Athletic’s model likes them even better at 29%, equal to +249.

As for the other major sports teams, it is not exactly the best of times, but it is also a good opportunity to get big odds for anyone so inclined. The Red Sox are +2000 to win the AL East, +3500 to take the AL pennant, and +8000 to win the World Series. The Patriots are +6000 in very early Super Bowl odds for the 2023 season.