Massachusetts plans to hike taxes, restrict sports betting ads
Massachusetts lawmakers are planning to amend rules around sports betting, proposing big changes to taxation, betting types, advertising, and consumer protections. The reforms are outlined in Senate Bill S.302, formally known as the Better Health Act, which frames sports wagering as a public health issue and aims to reduce problem gambling. The update on the proposal is expected by March 2026.
As per the proposed bill, the main aim is to curb what lawmakers describe as “high-risk” betting behaviour. The proposed bill would ban in-play betting, also known as live or in-game wagers, which are commonly offered by sportsbooks. It would also prohibit proposition bets, or prop bets, which focus on individual player actions or small events within a game. Supporters say these bets can encourage rapid-fire gambling and chasing losses, making them especially addictive.
Advertisements during live sports events would be banned, as lawmakers claim that advertising at high-engagement moments can push people into impulsive bets. Furthermore, agents and sports promoters would be barred from placing bets themselves, removing potential conflicts of interest and reinforcing the bill’s focus on responsible gambling.
Sharp rise in taxes proposed
The bill also includes a sharp rise in taxes on sports betting. The proposed rate would increase from 20 percent to 51 percent, making Massachusetts one of the highest-taxed sports betting markets in the United States. Daily limits may also be introduced, although these could be adjusted depending on affordability checks. These checks would assess a bettor’s income, assets, and overall financial capacity to ensure responsible gambling.
Staff incentives at sportsbooks would be restricted to prevent employees from being paid based on how much they encourage gambling. The legislation also targets “inducement-based” sales practices, including aggressive VIP schemes aimed at retaining high-value customers.
As regulators look to limit exposure to high-risk wagering formats, some consumers continue to gravitate toward alternative digital gambling options, including mobile-first platforms highlighted in guides to best mobile online casinos.
Sportsbooks would be required to double contributions to the Public Health Trust Fund and fund research into gambling-related harm, including potential links between problem gambling and suicide. Operators would also need to share anonymised bettor data with independent research bodies, giving regulators and public health organisations better insight into betting behaviour.
The bill builds on recent regulatory action in the state. For example, DraftKings was barred from voiding bets due to operator error, strengthening consumer protections. Sportsbooks are now required to notify “sharp bettors” when limits are applied, rather than quietly restricting accounts.
Bill after Kalshi ruling
The proposal’s timing is notable. It comes just weeks after a judge in Suffolk County blocked Kalshi, a prediction‑market app, from offering its sports betting products to people in Massachusetts. In a ruling requested by the state Attorney General’s office, the court said Kalshi hadn’t met basic licencing requirements and raised serious questions about consumer protection and public health.
Massachusetts’ moves mirror a wider trend across the United States, where other states have increased taxes and introduced stricter rules for sports betting. Lawmakers say the reforms are designed to protect consumers, reduce gambling-related harm, and ensure that sports betting operates within a responsible and regulated framework.
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