Massachusetts Sports Betting Bill Targets 51% Tax, Bet Bans, & VIP Programs

Massachusetts lawmakers are debating what legal sports betting should look like in the Bay State. And this time around, the proposal on the table would dramatically reshape the market in ways major operators won’t love.

A 51% Tax Rate Would Put Massachusetts Among the Most Aggressive Betting Markets

Sen. John Keenan’s bill, S.302, has been revived for the 2025–2026 legislative session and is moving through the State House after its reporting deadline was extended on Jan. 15 to March 6, 2026. The extension gives lawmakers more time to decide whether to keep the current framework largely intact or take a far more aggressive regulatory turn.

At the center of the proposal is a massive tax increase. Massachusetts currently taxes online sports betting at 20% under Chapter 23N. Keenan’s bill would raise that rate to 51%, matching New York and placing Massachusetts among the most heavily taxed mobile betting markets in the country. 

For operators, it would be a seismic shift. For bettors, it could mean fewer promotions and a thinner betting menu.

That menu would shrink considerably under S.302. The bill would ban both proposition bets and in-play wagering, two categories that drive engagement and revenue across modern sportsbooks. The result would be a return to a more traditional, pregame-only betting model, a move supporters argue reduces impulsive wagering, but critics say strips legal platforms of what keeps users engaged.

Keenan’s proposal also takes aim at VIP and host programs. The bill would prohibit employees, affiliates, or partners from being compensated based on customer wagering or deposits, effectively dismantling commission-linked VIP models. Supporters view the change as cutting off incentives to push high-volume betting, while opponents argue it fails to distinguish between predatory practices and legitimate customer service.

From VIP Bans to Affordability Checks, S.302 Targets How People Bet

High-stakes play would face additional scrutiny through mandatory affordability checks. Under the bill, bettors attempting to wager more than $1,000 in a single day or $10,000 in a month would need to pass a financial assessment. Operators would be required to verify that the wagers do not exceed 15% of the bettor’s available bank balance.

Advertising would also be curtailed. S.302 would ban sports betting ads during televised sporting events, adding another layer of restriction aimed at reducing exposure, particularly for younger viewers.

Keenan has been increasingly open about his concerns with how the market has evolved since legalization. At a November hearing, he said, “When I voted to legalize sports betting, I never thought it would become what it is.”

For now, S.302 remains in committee, but the March 6 reporting deadline is the next key pressure point. If the bill advances, operators will zero in on the 51% tax rate and betting restrictions, while public health advocates will highlight affordability checks and ad limits. Ultimately, lawmakers will have to decide whether Massachusetts wants a tightly constrained sports betting market, or to keep the current model and make more modest adjustments around the edges.

Alex Warren

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