Casinos Look to Control the Sports Betting Market in Massachusetts
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Massachusetts is working towards passing a sports betting bill but will continue to wait until 2021. This year, the house passed an economic development bill that had tied legalized sports betting to it. The Senate disapproved of sports betting on the bill but favors creating a bill for wagering in the state.
Now that the economic bill has passed, state lawmakers turn to sports betting, and the battle is heating up between casinos and online gaming operators. Casinos are arguing that they should be allowed to partner with up two-three online sports betting companies.
The argument is that casinos have been working tirelessly to establish brick and mortar sports betting for the state. Allowing online sports betting operators to flood the market would undermine the casino business.
“Those that make actual investments in Massachusetts, assume legitimate risk, and incur costs to provide a service or benefit in the Commonwealth should be enfranchised under this legislation. Conversely, automatic windfalls to industries or interests which assume no new costs, risks or obligations as a result of this type of expansion are not only harmful to the gaming industry’s interests but even more so to overall public interest,” PPC General Manager Lance George and Encore Boston Harbor President Brian Gullbrants wrote in the joint letter.
Casinos have drawn a line in the sand and will be doing everything possible to make sure they get a fair amount of the share if online sportsbooks try to flood the Massachusetts market.
Massachusetts Sports Betting Battle Ground
Penn National and Wynn Casino are digging its heels in for what should be a battle between the retail betting spots and the online sportsbooks.
In 2015, Penn invested $250 million to build its Plainville slots parlor and put in an additional $7 million towards other projects, while Wynn spent $2.6 billion to build Everest Casino.
Penn National and Wynn are taking shots towards DraftKings, claiming the online sports betting operator has not made investments into the Commonwealth. However, reports have shown that DraftKings has invested money back into Massachusetts, although the numbers have not been disclosed.
“Sports wagering expansion by our neighboring states substantially affects the competitive posture of the gaming industry here in the Commonwealth and places us at a strong disadvantage, with Massachusetts jobs, revenues, and economic activity at stake,” PPC and Encore continued in the joint statement.
Massachusetts casinos and sports betting operators will try to sway lawmakers into creating laws that will benefit its operations. Right now, it’s looking like a Penn vs. DraftKings battle in the Commonwealth, and it doesn’t look like it will be over soon.
Can the State Have Online and Retail Betting?
Yes, and that is most likely what will happen in Massachusetts. The House bill that passed had both in-person and online wagering in it. The casinos want to make sure they get a slice of the pie when sports betting is legalized, but it also looks like they are trying to undermine online sportsbooks with the statement that has come out.
The Commonwealth needs retail sports betting for the casinos and the economy, especially with the surrounding states already having legalized sports betting. However, online sports betting will get the most out of the state regarding revenue and taxes.
So, why not do both. This is most likely what will happen, but the gaming industry will jockey for the sports betting bill to create regulations that go in its favor, creating an unnecessary mess in the state.
