BOSTON — Nearly four years after the U.S. Supreme Court legalized sports betting, Massachusetts might finally be getting a piece of the action.
A proposal set up for a vote in the state Senate, possibly as early as Thursday, would authorize sports wagering and tax and regulate what has developed into a multi-billion dollar industry.
Under the Senate plan, sports betting would be regulated by the state Gaming Commission, and operators would be taxed at 20% of gross retail wagering sales and 35% for online and fantasy sports wagers. Operators would be required to pay a licensing fee of $5 million, which must be renewed every five years.
Even if the Senate approves the measure, there are major differences between the proposal and a similar version approved by the House last year.
For one, the Senate bill’s tax levy would be significantly higher than the House version, which calls for taxing in-person bets at 12.5% and 15% for mobile wagers.
A proposal filed by Republican Gov. Charlie Baker calls for a 10% excise tax on in-person wagers and 12% for online bets and daily fantasy sports contests. The taxes would be based on a company’s revenues after making any payouts.
Another major difference with the Senate version of the bill is that it would prohibit betting on college sports, while the House version authorizes it.
That could prove to be a sticking point in negotiations between the House and Senate. House Speaker Ron Mariano, D-Quincy, has pointed out that college sports wagering would likely be one of the largest drivers of wagering and has said leaving it out of the final package could be a “deal-breaker” for him.
Representatives of Massachusetts universities have called on lawmakers not to authorize wagers on college sports, or restrict the betting to out-of-state sports teams.
Lawmakers debated similar bills through the years, but none won approval. Many died in the Senate, which has been reluctant to approve sports betting.
The latest effort has broad support from legislative leaders and Baker.
In 2018, the U.S. Supreme Court struck down a federal law barring sports gambling in nearly all states except Nevada. The case involved New Jersey, which fought for years to allow sports gambling at casinos and racetracks.
Since then, at least 30 states — including Rhode Island, Connecticut, New Hampshire and New York — and Washington, D.C., have passed sports wagering laws.
Boston-based DraftKings, the MGM Springfield casino, and professional sports franchises such as the Boston Red Sox and Boston Celtics are all angling for a piece of the market when sports betting is finally legalized in Massachusetts.
Supporters say the state is losing out on revenue as residents bet on games in states that have legalized sport wagers.
In New Hampshire, which legalized sports betting in 2019, wagers surpassed $520 million in the previous fiscal year and more than 56,000 users have registered, according to the state Lottery.
More than half of those bets were placed by Massachusetts residents, according to the Lottery.
It’s not clear how much sports wagering would generate for Massachusetts, but recent estimates range from $28 million to up to $60 million a year if college sports is authorized.
Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at [email protected].