Massachusetts bill proposes strict caps and 51% tax on sports betting

Legislators in Massachusetts are debating Senate Bill 302, which is titled ‘An Act addressing economic, health and social harms caused by sports betting’.

If passed, the proposal would drastically alter how sports betting functions in the state by imposing some of the strictest regulations in any US betting market.

One of the main features of SB 302 is an amendment to Chapter 23N of Massachusetts law that raises the tax rate on sports wagering revenue from 20% to 51%.

This would significantly change the current revenue model established when legal betting was introduced in the Commonwealth. It would notably put Massachusetts among the highest-taxed sports betting jurisdictions in the nation.

Beyond taxation, the bill would significantly narrow permitted bet types by banning in-play wagering and proposition bets, allowing only pre-game straight bets to remain legal.

The legislation also targets marketing and promotional activity, prohibiting sports betting advertisements during televised sporting events. It also places promotions such as bonus bets, odds boosts, same-game parlays and “risk-free” wagers under the state’s consumer protection statute.

SB 302 also introduces stringent betting limits based on affordability tests. Without an operator confirming that the bets are less than 15% of the customer’s net bank balance, a bettor would be restricted to $1,000 (£724) per day or $10,000 (£7,240) per month.

It would also prohibit gambling operators, affiliates, and staff from being paid based on the volume of wagers or customers’ deposits.

This step effectively removes conventional VIP and high roller programmes from the market.

Data gathering and public health reporting requirements may be increased, creating a necessity for operators to provide anonymised player tracking data on gambling behaviour, timing, and spending, and to report incidents of suicide attempts and self-harm related to gambling.

SB 302 was initially introduced in the last session and then refiled for 2025-2026. A legislative update indicates the Senate might take the bill up for review before March 6th, reopening discussion of the proposal.