Sports Betting Regulations in Massachusetts

In the aftermath of the US Supreme Court striking down PASPA, each state has the opportunity to create sports betting legislation and regulations. Some states have chosen to require sportsbooks to use official data, while others have taken a broader approach. The American Gaming Association supports private commercial agreements for official data but opposes legislative mandates.

The NBA and MLB have lobbied for the inclusion of an official data mandate in state-regulated sports betting, and their argument has gained some traction in West Virginia, where regulators are considering an emergency rule that would include league information. But legislators and bettors have yet to prove the value of official data in the real-time betting arena. The leagues are demanding a fee of 0.25% of total wagering, which is not exactly a bargain.

It may also be difficult for the leagues to convince sportsbooks that official data is necessary. The industry has plenty of experience grading in-play wagers without the benefit of live data, and a number of operators have shown a willingness to take such bets even when it is possible for them to be graded using non-official sources.

Massachusetts has a credible claim to being the capital of daily fantasy sports in the United States, and Boston is also home to many of the country’s largest sportsbooks, including DraftKings, which employs 650 people in its offices on Boylston and Berkeley streets. The company also has a presence in the sports betting space, with an office in Las Vegas and partnerships with several major bookmakers.