The sports betting bill in Massachusetts has a 20% tax rate for online betting and a 15% tax rate for retail betting.
The tax revenue of legal sports betting in MA will be divided into five different funds, and operators will be charged a $100,000 application fee.
BOSTON – Massachusetts has passed a sports wagering bill through legislation and is only waiting on governor Charlie Baker’s signature.
Bakerhas openly expressed support for legal sports betting in Massachusetts.
House Bill 5164 breaks down where all of the revenue will be divided from the tax that will be implemented by the sports betting operators. These operators will be taxed at a 15% rate for in-person sports betting, and a 20% rate for online betting.
This tax will be divided into five different funds that plan on having positive economic and societal impacts on Massachusetts residents.
General Fund – 45%
Workforce Investment Fund – 17.5%
Gaming Local Aid Fund – 27.5%
Youth Development And Achievement Fund – 1%
Public Health Trust Fund – 9%
Each fund that was created serves a specific purpose to benefit the state from the revenue brought in by legal sports betting.
Youth Development Fund
This fund will award financial assistance to students in public/independent colleges, universities, and places of higher education. Also, this fund will be used for out-of-school activities, such as sports programs, academic tutoring, and music programs in the state.
Workforce Investment Trust Fund
Managed by the Secretary of Housing and Economic Development, this fund will be used to strengthen work opportunities in low-income areas and target youth and adults that are vulnerable to the working environment. The goal will be to help create better wager opportunities for these low-income/at-risk youth and adults.
Public Health Trust Fund
The secretary of health and human services will have the ability to use this fund to understand the social and economic effects of legal sports betting. This will consist of research for scientific understanding of the psychological effects of sports betting and will be a part of the Massachusetts sports wagering research agenda.
Sports Wagering Control Fund
This is a separate fund that will be managed by the commission and will be used to regulate all sports betting activities in Massachusetts. Sportsbook operators will pay a non-refundable $100,000 application fee for a sports betting license, and all of those funds will be credited into the control fund.
All employees of sports betting operators in Massachusetts will also have to apply for a $100 non-refundable license that will also go into the Sports Wagering Control Fund
News tags: Charlie Baker | HB5164 | Massachusetts
Ben has been an avid sports fan his whole life and mostly follows football and basketball, both professional and collegiate. He has been covering topics that vary from Super Bowl prop bets to articles about the generated revenue from regulated sports betting. He is currently finishing his Editing, Writing, and Media Degree at Florida State University, with a minor in Business. Diving into the world of sports betting, he is ecstatic to work in an area that has combined his two passions of sports and writing.