For enlarging the web-based lotteries’ scope and incrementing sports betting tax to thirty percent in the state, Massachusetts legislators have asked for amendments on House Bill 4879.
Amendments for House Bill 4879
The sports betting bill, passed the previous week, has been amended by Massachusetts legislators for now enabling the web-based lotteries to work legitimately in Massachusetts. But, according to the amendments, commercial operators will be charged double to operate web-based wager products.
This bill was incorporated into the new economic development package. The House Bill 4879, sponsored by Massachusetts House Committee on Ways and Means, is introduced for increasing its growth in the state.
The bill mainly aims at the Massachusetts Sports Wagering acts that focus on legalizing sports wagering of every kind in the state, even if they are mobile, web-based, or land-based. The legislators passed the amendments with an outstanding back at 157-1 to the advantage of modifications.
The Lottery Commission will be capable of expanding its scope as well as launching multiple advertising activities for increasing the sales of tickets and participation, and the credit goes to the amendments.
For increasing the efficiency of the present model under which the state lottery runs, a survey will be conducted by the Commission for modifying the offers of Lottery as per the priorities of inhabitants of the state.
Double Tax for Massachusetts’s Sports Betting Industry
Gamers would be able to self-exclude and alter the maximum funds they can deposit and spend. The bill incorporated a clause stating that administration and operation costs for backing the web-based Lottery might not go beyond 15% of the sales revenue generated by the ticket.
Initially, 15 percent of the gross gaming revenue was to be paid by the sports betting operators, and this amount would now be incremented to 30 percent.
Suggestions were given to raise the taxation to even 50 percent; however, legislators agreed on a smaller amount. Perhaps, they were aware of the crushing impact that would have had resulted due to higher taxes.
Racetracks in Massachusetts will now be capable of offering mobile betting solutions. The Massachusetts Gaming Commission will formulate a report for the so-called “Region C” casino in the Southeast area.
Under the Expanding Gaming Act 2011, the casino was presented; however, since then, it has been mothballed. It’s due to unsolved problems with bordering states like Connecticut, Rhode Island, etc., which warned that revenues might die out if a new casino is made near to their border.
House Bill 4879 still requires a third reading in the House of Representatives, and will then make its way to the Senate. If everything goes parallel with the plan, soon, a new bill will be signed by Governor Charlie Baker.
Year-over-year, the lottery revenue of Massachusetts has reduced by 4.7%, recording 5.25 billion dollars for FY-2020, finishing on the 30th of June. The state has scheduled the reopening of casinos in June after their closure for over two months.
