The sports betting landscape in Massachusetts is poised for a significant overhaul, as lawmakers revive a proposal that seeks to radically transform the state’s approach to legal online wagering. Introduced by Senator John Keenan, Senate Bill 302 (S.302) has been refiled for the 2026 session after receiving little traction in its initial form last year. The proposed amendments, which aim to address issues ranging from tax rates to betting structures, would substantially alter how operators and players engage with online sports betting.

Proposed Tax Hike and New Betting Restrictions

At the heart of the latest version of the bill is a dramatic increase in the state’s online sports betting tax rate, which would rise from 20% to 51%. This would place Massachusetts alongside New York in terms of the highest sports betting tax rates in the U.S. The increase is expected to have significant implications for operators, who currently regard the existing tax rate as relatively favorable compared to other competitive markets.

In addition to the tax hike, S.302 also seeks to limit the types of wagers available to players. The bill proposes a ban on in-play and proposition bets—two forms of betting that have become increasingly popular in modern sportsbooks. These types of bets, which allow players to wager on individual events within a game or during live play, would be removed from the menu of allowed wagers in Massachusetts. By restricting the betting options to more traditional pre-game lines, the proposal aims to simplify the market and curb some of the rapid, high-volume betting patterns seen on many sports betting apps.

According to InGame, another significant component of the bill targets VIP programs, which have been a staple of many sports betting platforms. These loyalty programs reward high-volume players with personalized services and offers, often with a dedicated host. Under the new proposal, these programs would be overhauled, with provisions that would prohibit any compensation based on customer wagering or deposits. This would effectively eliminate the business model that incentivizes high-stakes betting and customer pressure tactics. Proponents of the bill argue that this measure is necessary to curb potentially exploitative practices, while critics warn that it could eliminate a valuable customer service tool.

S.302 also includes provisions aimed at curbing the visibility of sports betting in mainstream media. The bill would ban advertisements for sports betting during televised sporting events, a move that reflects growing concerns about the normalization of gambling. This restriction would limit the exposure of sports betting to the public, particularly during high-profile broadcasts that attract large audiences.

Affordability Checks and Increased Regulation

The bill also introduces affordability checks aimed at ensuring that individuals do not wager beyond their means. Operators would be required to perform a financial assessment on any bettor attempting to place wagers exceeding $1,000 per day or $10,000 per month. The proposed measure would only allow such high-volume betting if the amount does not exceed 15% of the bettor’s available bank account balance. This measure is seen as an attempt to promote responsible gambling and prevent individuals from spending excessively.

In addition to these changes, S.302 proposes an increase in funding for the Sports Wagering Control Fund, from $1 million to $2 million annually. The bill also introduces new research requirements, including studies to investigate whether sports betting is linked to increased risks of suicide attempts and self-harm among gamblers. This research would be supported by anonymized data from operators, who would be required to provide the state with detailed tracking information on each player’s gambling activity.

As the bill continues to move through the legislative process, all eyes are on the upcoming March 6 deadline, when lawmakers will be forced to make a final decision on whether to push the proposal forward. Should the bill pass, Massachusetts would become one of the most heavily regulated sports betting markets in the U.S., with far-reaching impacts for both operators and players. The proposal has generated significant debate, with some arguing that it strikes a necessary balance between regulation and accessibility, while others fear that the proposed changes could stifle growth and innovation in the industry.