Author Topic: Sports betting to become legal in Massachusetts  (Read 2000 times)

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Sports betting to become legal in Massachusetts
« on: August 01, 2022, 10:20:58 AM »

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The legislation would allow for wagering on both professional and collegiate sports in the Bay State, according to Speaker Mariano's tweet. Betting would be allowed on out-of-state college and universities only, unless a Massachusetts college or university is participating in a national tournament such as college basketball's NCAA Tournament.

The legislation also would institute a 15 percent tax on in-person betting and a 20 percent tax on mobile betting.

How does this affect you?


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Re: Sports betting to become legal in Massachusetts
« Reply #1 on: August 01, 2022, 10:30:16 AM »

Offline Vermont Green

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The legislation would allow for wagering on both professional and collegiate sports in the Bay State, according to Speaker Mariano's tweet. Betting would be allowed on out-of-state college and universities only, unless a Massachusetts college or university is participating in a national tournament such as college basketball's NCAA Tournament.

The legislation also would institute a 15 percent tax on in-person betting and a 20 percent tax on mobile betting.

How does this affect you?

I rarely bet and don't expect that to change.  These taxes seem high.  So if you bet $100 for what may be a $95 payoff (say on an over/under bet), does that mean you have to pay $120 (assuming mobile betting)?  And still only win $95?  15% or 20% is enough to dramatically change the payout odds of many bets.  Is this how other states do it?

I could understand regular sales taxes along with taxation of the corporate profits and income taxes on winnings, but this additional tax seems like it is really going to dampen the action.

Re: Sports betting to become legal in Massachusetts
« Reply #2 on: August 01, 2022, 10:32:31 AM »

Online Celtics2021

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The legislation would allow for wagering on both professional and collegiate sports in the Bay State, according to Speaker Mariano's tweet. Betting would be allowed on out-of-state college and universities only, unless a Massachusetts college or university is participating in a national tournament such as college basketball's NCAA Tournament.

The legislation also would institute a 15 percent tax on in-person betting and a 20 percent tax on mobile betting.

How does this affect you?

It means Iíll place some bets on the Celtics and other NBA teams this year, particularly over-under win totals, which is where some very obvious money has been available since Iíve started paying attention.  I doubt Iíll place bets on individual games ever, but I probably will on some playoff series.

Disappointed that March Madness is excluded, although Iíve watched less college basketball than usual the last year, so maybe it isnít as big a deal as it could have been.  EDIT: Maybe Iím misreading, and a March Madness exception was made?  Not sure.

Maybe Iíll get back into the NFL as well, but probably not.  If sports betting had been available 5 or so years ago the NFL might have been able to keep me, however.

Re: Sports betting to become legal in Massachusetts
« Reply #3 on: August 01, 2022, 10:37:32 AM »

Online Celtics2021

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The legislation would allow for wagering on both professional and collegiate sports in the Bay State, according to Speaker Mariano's tweet. Betting would be allowed on out-of-state college and universities only, unless a Massachusetts college or university is participating in a national tournament such as college basketball's NCAA Tournament.

The legislation also would institute a 15 percent tax on in-person betting and a 20 percent tax on mobile betting.

How does this affect you?

I rarely bet and don't expect that to change.  These taxes seem high.  So if you bet $100 for what may be a $95 payoff (say on an over/under bet), does that mean you have to pay $120 (assuming mobile betting)?  And still only win $95?  15% or 20% is enough to dramatically change the payout odds of many bets.  Is this how other states do it?

I could understand regular sales taxes along with taxation of the corporate profits and income taxes on winnings, but this additional tax seems like it is really going to dampen the action.

My understanding was that these were taxes paid by DraftKings et al, and not the bettor (because one of the hangups was Draft Kings arguing they shouldnít have to pay a tax on bets made with promotional credits).

Re: Sports betting to become legal in Massachusetts
« Reply #4 on: August 01, 2022, 11:04:15 AM »

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It means I don't have to sit at O'Hare/Midway loading up on bets before I board a flight back to Mass. 



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Re: Sports betting to become legal in Massachusetts
« Reply #5 on: August 01, 2022, 11:09:52 AM »

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It means I don't have to sit at O'Hare/Midway loading up on bets before I board a flight back to Mass.

Hahaha

Re: Sports betting to become legal in Massachusetts
« Reply #6 on: August 01, 2022, 11:11:46 AM »

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Suggestion: Now that itís legal in Mass, maybe there could be a sub-forum devoted to sports betting?  Not sure what would get posted there, but my guess is there would be increased interest in the topic.

Re: Sports betting to become legal in Massachusetts
« Reply #7 on: August 01, 2022, 11:28:51 AM »

Offline Vermont Green

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The legislation would allow for wagering on both professional and collegiate sports in the Bay State, according to Speaker Mariano's tweet. Betting would be allowed on out-of-state college and universities only, unless a Massachusetts college or university is participating in a national tournament such as college basketball's NCAA Tournament.

The legislation also would institute a 15 percent tax on in-person betting and a 20 percent tax on mobile betting.

How does this affect you?

I rarely bet and don't expect that to change.  These taxes seem high.  So if you bet $100 for what may be a $95 payoff (say on an over/under bet), does that mean you have to pay $120 (assuming mobile betting)?  And still only win $95?  15% or 20% is enough to dramatically change the payout odds of many bets.  Is this how other states do it?

I could understand regular sales taxes along with taxation of the corporate profits and income taxes on winnings, but this additional tax seems like it is really going to dampen the action.

My understanding was that these were taxes paid by DraftKings et al, and not the bettor (because one of the hangups was Draft Kings arguing they shouldnít have to pay a tax on bets made with promotional credits).

I may not understand but if you make a $100 bet and Draft Kings needs to pay $20 to Mass right off the top, their payout to you isn't going to be $95 or whatever.  It is going to be $75 which makes is a much less favorable bet.  Even the losing bets.  Before, Draftkings would make $100 if you bet and lost.  Now they only make $80.  That is why they are going to have to adjust all their payouts down by 20%, right?

Re: Sports betting to become legal in Massachusetts
« Reply #8 on: August 01, 2022, 11:40:49 AM »

Online Celtics2021

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The legislation would allow for wagering on both professional and collegiate sports in the Bay State, according to Speaker Mariano's tweet. Betting would be allowed on out-of-state college and universities only, unless a Massachusetts college or university is participating in a national tournament such as college basketball's NCAA Tournament.

The legislation also would institute a 15 percent tax on in-person betting and a 20 percent tax on mobile betting.

How does this affect you?

I rarely bet and don't expect that to change.  These taxes seem high.  So if you bet $100 for what may be a $95 payoff (say on an over/under bet), does that mean you have to pay $120 (assuming mobile betting)?  And still only win $95?  15% or 20% is enough to dramatically change the payout odds of many bets.  Is this how other states do it?

I could understand regular sales taxes along with taxation of the corporate profits and income taxes on winnings, but this additional tax seems like it is really going to dampen the action.

My understanding was that these were taxes paid by DraftKings et al, and not the bettor (because one of the hangups was Draft Kings arguing they shouldnít have to pay a tax on bets made with promotional credits).

I may not understand but if you make a $100 bet and Draft Kings needs to pay $20 to Mass right off the top, their payout to you isn't going to be $95 or whatever.  It is going to be $75 which makes is a much less favorable bet.  Even the losing bets.  Before, Draftkings would make $100 if you bet and lost.  Now they only make $80.  That is why they are going to have to adjust all their payouts down by 20%, right?

No, that not it.  Itís on sports betting ďrevenuesĒ, which is the net that the house takes in off the collective bets.  So if collectively bettors at CelticsStrong wager $10000 on a game, and DraftKings pays out $9500, then Draft Kings pays 20% on $500. DraftKings was concerned that if $500 of the bets in that scenario were from promotional credits, they would have to pay taxes on a net that included money that they didnít actually receive.  Donít know how that was sorted out in the final legislation, which would likely impact the numbe of promotions DraftKings runs in Massachusetts.

Re: Sports betting to become legal in Massachusetts
« Reply #9 on: August 01, 2022, 11:51:15 AM »

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Sometimes I throw down a parlay on UFC Fights and have to drive to Nashua NH to place the bet through Draftkings. Is it a good thing that I will have easier access? That depends entirely on my level of discipline.

I try to follow 2 rules

1. Never bet anything that you wouldn't be willing to lose.
Seems obvious but when you string together a few losing bets they add up to something that you wouldn't want to spend and at the very least you should cool off on the betting for a while.

2. Try to put some time between a big win and your next bet.
I try to avoid 'let it ride' since I feel like it leads to me betting with my heart instead of my brain.

I could see both of these rules being strained by having easier access to sports betting but if your aware of it, it shouldn't be too big of a problem.

Re: Sports betting to become legal in Massachusetts
« Reply #10 on: August 01, 2022, 01:23:46 PM »

Offline Vermont Green

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The legislation would allow for wagering on both professional and collegiate sports in the Bay State, according to Speaker Mariano's tweet. Betting would be allowed on out-of-state college and universities only, unless a Massachusetts college or university is participating in a national tournament such as college basketball's NCAA Tournament.

The legislation also would institute a 15 percent tax on in-person betting and a 20 percent tax on mobile betting.

How does this affect you?

I rarely bet and don't expect that to change.  These taxes seem high.  So if you bet $100 for what may be a $95 payoff (say on an over/under bet), does that mean you have to pay $120 (assuming mobile betting)?  And still only win $95?  15% or 20% is enough to dramatically change the payout odds of many bets.  Is this how other states do it?

I could understand regular sales taxes along with taxation of the corporate profits and income taxes on winnings, but this additional tax seems like it is really going to dampen the action.

My understanding was that these were taxes paid by DraftKings et al, and not the bettor (because one of the hangups was Draft Kings arguing they shouldnít have to pay a tax on bets made with promotional credits).

I may not understand but if you make a $100 bet and Draft Kings needs to pay $20 to Mass right off the top, their payout to you isn't going to be $95 or whatever.  It is going to be $75 which makes is a much less favorable bet.  Even the losing bets.  Before, Draftkings would make $100 if you bet and lost.  Now they only make $80.  That is why they are going to have to adjust all their payouts down by 20%, right?

No, that not it.  Itís on sports betting ďrevenuesĒ, which is the net that the house takes in off the collective bets.  So if collectively bettors at CelticsStrong wager $10000 on a game, and DraftKings pays out $9500, then Draft Kings pays 20% on $500. DraftKings was concerned that if $500 of the bets in that scenario were from promotional credits, they would have to pay taxes on a net that included money that they didnít actually receive.  Donít know how that was sorted out in the final legislation, which would likely impact the number of promotions DraftKings runs in Massachusetts.

OK, that makes more sense.  It is not exactly a tax on earnings (profit) in that scenario but it is also not applied as a sales tax either.  I wonder if earnings are then taxed again.  In this case, what I mean is this net revenue less other costs (salaries, rent, computers, and so on).  In your example, instead of that $10,000 of bets generating $500 to "pay the bills" they now have only $400.  Their earnings or profit would be what is left of that $400 after paying all the bills.

Re: Sports betting to become legal in Massachusetts
« Reply #11 on: August 01, 2022, 01:45:42 PM »

Online Celtics2021

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The legislation would allow for wagering on both professional and collegiate sports in the Bay State, according to Speaker Mariano's tweet. Betting would be allowed on out-of-state college and universities only, unless a Massachusetts college or university is participating in a national tournament such as college basketball's NCAA Tournament.

The legislation also would institute a 15 percent tax on in-person betting and a 20 percent tax on mobile betting.

How does this affect you?

I rarely bet and don't expect that to change.  These taxes seem high.  So if you bet $100 for what may be a $95 payoff (say on an over/under bet), does that mean you have to pay $120 (assuming mobile betting)?  And still only win $95?  15% or 20% is enough to dramatically change the payout odds of many bets.  Is this how other states do it?

I could understand regular sales taxes along with taxation of the corporate profits and income taxes on winnings, but this additional tax seems like it is really going to dampen the action.

My understanding was that these were taxes paid by DraftKings et al, and not the bettor (because one of the hangups was Draft Kings arguing they shouldnít have to pay a tax on bets made with promotional credits).

I may not understand but if you make a $100 bet and Draft Kings needs to pay $20 to Mass right off the top, their payout to you isn't going to be $95 or whatever.  It is going to be $75 which makes is a much less favorable bet.  Even the losing bets.  Before, Draftkings would make $100 if you bet and lost.  Now they only make $80.  That is why they are going to have to adjust all their payouts down by 20%, right?

No, that not it.  Itís on sports betting ďrevenuesĒ, which is the net that the house takes in off the collective bets.  So if collectively bettors at CelticsStrong wager $10000 on a game, and DraftKings pays out $9500, then Draft Kings pays 20% on $500. DraftKings was concerned that if $500 of the bets in that scenario were from promotional credits, they would have to pay taxes on a net that included money that they didnít actually receive.  Donít know how that was sorted out in the final legislation, which would likely impact the number of promotions DraftKings runs in Massachusetts.

OK, that makes more sense.  It is not exactly a tax on earnings (profit) in that scenario but it is also not applied as a sales tax either.  I wonder if earnings are then taxed again.  In this case, what I mean is this net revenue less other costs (salaries, rent, computers, and so on).  In your example, instead of that $10,000 of bets generating $500 to "pay the bills" they now have only $400.  Their earnings or profit would be what is left of that $400 after paying all the bills.

They would be subject to federal income tax, yes.  Another thing that Draft Kings was lobbying for was to have net revenue also include federal taxes paid -- not sure how that played out in the final bill.  Itís also not clear if this tax would be in lieu of other income taxes paid to the State or in addition to.  Probably some combination, as online sports betting companies are going to make most /revenue from this income stream, but casinos make revenue from a variety of sources.
« Last Edit: August 01, 2022, 02:06:06 PM by Celtics2021 »