Massachusetts was an on-again-off-again contender to legalize sports betting in 2022. After months of seesawing back and forth, a conference committee pulled a rabbit out of the hat in late July, and Massachusetts joined the ranks of legal sports betting states.
There was a sliver of hope that Massachusetts would be able to get its much-hyped sports betting industry up and running soon after Gov. Charlie Baker signed the legislation into law on August 10, 2022. That hope disappeared during the first Massachusetts Gaming Commission hearing, and each subsequent hearing has pushed the launch timeline back.
The latest hearing, a two-day affair that was far more contentious than a typical gaming commission hearing, resulted in a proposed timeline that would see retail betting locations sometime in January, with the first online apps available in March. The timeline is subject to change, but the chances it is accelerated are close to zero. The far more likely change would be extending it further into the future.
What’s the Holdup?
How did Massachusetts go from a possible Fall 2022 launch to maybe in the Spring? The answer is simple, a fast-tracked launch required three things:
- That the MGC was preparing pre-law and getting a lot of legwork done.
- The law contains zero “surprises.”
- A willingness from the MGC to cut through the usual red tape.
None of the three came to pass.
Get Out In Front
Unlike other jurisdictions, the MGC was handcuffed and unable to do much, if any, prep work. Rather than working from a single bill that might get tweaked around the edges, sports betting in Massachusetts came down to the wire, with a conference committee Frankensteining a bill from two radically different pieces of legislation.
This double uncertainty (would the legislation pass and what would be in it) prevented the MGC from getting out in front of legal sports betting and promulgating rules and regulations or setting up a licensing process.
Surprises
Because the bill’s language was revealed at the last minute, it wasn’t until after it passed that every word could be parsed. Unsurprisingly, there was some ambiguity.
The most noticeable issue was the discrepancy in licenses and temporary licenses, with the law capping licenses but leaving temporary licenses uncapped.
There has also been a lot of discussion about the Category 2 licenses and if racetracks can launch online apps before they secure a retail license. That issue quickly segued into debates about synchronized or staggered launches.
Rightfully Cautious
As I noted on Twitter, while frustrating, the MGC’s cautious approach to sports betting is a feature, not a bug. The Commission’s mandate is to regulate and safeguard gaming in Massachusetts, which means checking, double-checking, and triple-checking everyone’s work—not relying on other states’ decisions and conclusions.
It's easy to say, "What's the holdup? It's the same operators already approved in other states." The problem is these are MASSACHUSETTS regulators. Their mission statement is to properly vet and regulate gaming in MA. 2/
— Steve Ruddock (@SteveRuddock) October 7, 2022
It’s also important to understand that the MGC isn’t a group of seasoned gaming regulators. Since its inception, appointment to the MGC has meant on-the-job training.
The current iteration of the MGC comprises:
- Cathy Judd-Stein, Chair – appointed in 2019
- Eileen O’Brien – appointed in 2018
- Bradford R. Hill – appointed in 2021
- Nakisha Skinner – appointed in 2022 (served as MGC licensing chief from 2020-2022)
- Jordan Maynard – appointed in 2022
None of the commissioners have extensive experience in gaming or sports betting. Commissioner O’Brien is the most seasoned gaming regulator of the group with four-and-a-half years of experience.
When Will Massachusetts Have Online Sports Betting?
One of the potential issues that could push the March launch back is the number of license applications the MGC receives. During the two-day hearing last week, it was clear that an abundance of applications would push the target date well beyond March.
Some of the commissioners hinted at there is outside pressure to get sports betting up and running. Still, others scoffed at the notion, insisting the sports betting process follows the same guidelines as the Commission’s other duties.
Bottom line: A pre-March Madness launch of online betting is realistic but optimistic. No one should be shocked if the launch timeline extends into April, May, or even June.
