If sports betting is legalized in Massachusetts, how much money could it raise?
The answer depends on what exactly is allowed, what sportsbook management company they team up with and how high the tax rate will be.
But a presentation Tuesday by the Massachusetts Gaming Commission at a legislative hearing indicates that the profits to the state would be relatively modest — between $11 million and $45 million annually, depending on what form of gambling is legalized and assuming a 10% tax rate. Others who testified at the hearing said similarly that Massachusetts should not anticipate a huge windfall.
“Sports betting is a low margin business”
said Justin Stempeck, associate counsel of the Massachusetts Gaming Commission, who led the commission’s studies of sports betting.
Massachusetts lawmakers are considering whether to legalize betting on sports after a 2018 U.S. Supreme Court decision overturned a federal ban. The Joint Committee on Economic Development and Emerging Technologies held an invitation-only public hearing on sports betting on Tuesday. A second day of the hearing, open for public testimony, will continue Wednesday.