Place a wager on competitors for new biz spoils
The U.S. Supreme Court decision clearing the way for legal sports betting is set to spark a feeding frenzy in sports-obsessed Massachusetts as lawmakers, lobbyists and gaming interests battle over the spoils of the lucrative new business.
Look for lawmakers and other elected officials to quickly insert themselves into the picture and attempt to strictly regulate sports betting — and reap the rewards in the form of new jobs and tax revenue.
“A lot of people have equities in this issue,” said Sen. Eric Lesser (DLongmeadow) co-chairman of the Economic Development committee. “This is Beacon Hill. Everyone wants to be heard.”
The high court ruling could sprout a whole new bureaucracy to cover sports betting, similar to how the Massachusetts Gaming and Cannabis Control commissions were created to control casino gambling and legalized pot sales. That means more high-paying jobs for legislators and their aides.
Attorney General Maura Healey, a one-time gambling opponent, is likely to be influential in whatever legislation gets crafted. Her office said one of its priorities would be protecting players.
Treasurer Deborah B. Goldberg will likely make a power play, because her office is now in charge of the Lottery, which could take a big hit if players move to sports betting.
Gov. Charlie Baker, a sports fan and admitted non-bettor, will also play a key role in the debate. A good guess is that Baker will take a cerebral and cautious approach toward the new industry. Just a guess.
A “white paper” on sports betting produced by the Massachusetts Gaming Commission in February anticipated the battle ahead if the court overturned the sports betting ban.
“Who will be allowed to enter the market as sports betting providers; how and to what extent will they be licensed; will online sports betting be allowed and by whom; what types of bets (e.g. “in-play betting) will they be allowed to offer and on which contests (e.g. eSports, virtual sports); how will players be protected and what role will responsible gaming occupy in this activity are all questions that could be answered by statute,” the report said.
Massachusetts is actually well behind in the debate over sports betting. Other states, including Connecticut and Rhode Island, anticipating the court ruling yesterday, have already enacted legislation to get into the sports betting game.
Fantasy betting sites DraftKings and FanDuel have been drooling over the prospect of expanding into real sports betting, and the court ruling yesterday opens the door wide open.
Just in 2017 alone, DraftKings and FanDuel spent a combined $373,000 on lobbying in Massachusetts. With the high court ruling, that figure should skyrocket this year as the companies set their sights on getting a piece of the sports betting business.
And the three licensed gaming operators in Massachusetts will be making a big push to grow their tentacles into sports betting.
But whatever happens, one thing is guaranteed: new taxes. Look for lawmakers to try and grab their share of revenue from sports betting, and gaming companies and bettors will ultimately pay.
And it’s a good bet the debate will be long and contentious because that’s how we do things in Massachusetts.