A bill that aims to introduce sports betting in Massachusetts has been passed by the state House and referred to the Committee on Senate Ways and Means in a major development for sports wagering in the state.
The bill, House Bill 3974, outlines a tax of 12.5% for license holders each month, with license fees of $5.0m regardless of which license category an operator is eligible for. It was passed 156-3.
The Senate must now approve its own version of the bill – Senate Bill 269.
S269, which is sponsored by Senator Eric Lesser, Senator Anne Gobi, Senator Susan Moran and Representative Adam Scanlon, was referred on July 21.
The bill outlines a minimum license application fee of $1.0m for each operator seeking a Category 1 and Category 2 license, to cover the costs of the application and the investigation into the operators’ suitability. If the costs exceed the fee, the operator will be given 30 days to pay the excess.
For a Category 1 license, the initial licensing fee will be $2.5m. The license will extend over a five-year period, with the renewal fee being $1m.
Category 2 licensees will pay $1.5m in fees, to last for a five-year period, and will need to pay a renewal fee of $500,000.
The state will collect a tax of 20% on Category 1 and Category 2 license holder operators’ gross gaming revenue.
For operators seeking a Category 3 license, the application fee will be $2.0m. The licensing feel is set at $7.5m for a five-year duration, along with a license renewal fee of $3.0m
The state will impose tax of 25% on category 3 license holders’ gross gaming revenue.
The bill was previously referred to the committee on Economic Development and Emerging Technologies for approval.