John Keenan, a Massachusetts Senator, recently proposed a state budget amendment that would raise the state's online sports betting tax rate from 20% to 51%.
Keenan's proposal, one of hundreds of proposed budget amendments, would lead to a massive shift in the state's current sports betting market. Massachusetts' tax rate would match New York's sports betting tax rate of 51%, if the idea gains approval. The 51% tax rate in New York is the highest of any U.S. state.
The proposed tax boost only adds to possible tensions between Massachusetts regulators and lawmakers with the state's betting operators. Earlier this week, operators skipped a roundtable discussion held by the Massachusetts Gaming Commission about limiting sports betting, angering commissioners.
The budget amendment proposal, if adopted, would surely irk Massachusetts sports betting operators even more. It's possible some operators would consider leaving the state, given such a dramatic shift in the financial feasibility of operating.