TAKING A BIG GAMBLE ON STATE-RUN SPORTS BETS
A massive change could be coming to how fans interact with professional sports in Massachusetts, after a blockbuster Supreme Court ruling yesterday that lets states legalize betting on games.
Casinos, tracks, online companies and even state agencies such as the Lottery will likely battle it out in a high-stakes play for part of the action that could reach into the hundreds of millions in the Bay State and into the billions nationwide.
And with the potential of $60 million in tax revenue on the line, state Sen. Eric Lesser (D-Longmeadow), in charge of reviewing a proposal to regulate online fantasy sports, is urging the Legislature to move quickly on creating new laws for gambling, while Gov. Baker and others in the Legislature were noncommittal yesterday.
Meanwhile, it remains unclear whether Attorney General Maura Healey, who has opposed online gambling, plans to fight sports betting here. A spokeswoman for Healey — who has opposed casino gambling — said, “We are reviewing the decision. If the Legislature wants to take this up, our office will be focused on the consumer protec-
tion issues associated with gambling and sports betting.”
The Supreme Court’s 6-3 vote to strike down the Professional and Amateur Sports Protection Act leaves it to individual states to decide whether they should allow betting. The illegal gambling industry has been estimated to draw $50 billion to $150 billion in wagers every year, and several states, including New York and New Jersey, have already prepared to allow sports betting.
And while Massachusetts is lagging behind, the state will definitely ante up, according to Richard McGowan, an associate professor of economics at Boston College.
“I can’t imagine we won’t legalize sports gambling. It will start out probably fairly calm, probably at the two new casinos and racetracks, then from there it will be interesting,” McGowan said, saying that online sports betting would really make an impact.
“Online is going to be the really dangerous compulsive thing, with all the college students here that’s really where it will get in trouble,” McGowan said. “Young males are going to go crazy with this.”
In a “white paper” released earlier this year, the state’s Gaming Commission outlined the potential fallout from the Supreme Court ruling in favor of sports betting. The paper estimated Massachusetts could potentially see nearly $400 million in yearly wagers — and at a high tax of 15 percent, take in more than $60 million in revenues.
Besides noting that online betting was “seen by many as essential to disrupting the existing relationships between sports bettors and illegal bookmakers,” the report noted that existing legal gambling operations would be interested in expanding into sports betting.
In a statement, Treasury Secretary Deborah B. Goldberg said she wanted to “ensure a seat at the table” for the Lottery in any discussions about sports betting.
Encore Boston Harbor spokesman Michael Weaver said the casino “looks forward to what we expect will be a thorough and thoughtful process.”