Regulators Flexing Their Muscles in Massachusetts and New Jersey

As the U.S. sports betting market matures, it's reasonable to expect that regulators all over the country will be heavily involved in honing existing regulations. Regulators in Ohio are already making regulatory adjustments after only six (6) months following the launch of sports betting activities.

Not to be outdone, regulators in more established sports betting communities are also making changes to their regulatory landscapes. Let's take a look at pieces of legislation that were just passed in Massachusetts and New Jersey.

Massachusetts Legislature Requires 21+ Warning Label

A big point of contention throughout the U.S. sports betting community is making sure sports betting operators are always focused on following the rules. Regulators feel the rules must be followed for the protection of the most vulnerable people in society. Within the sports betting community, the most vulnerable people would be potential problem gamblers and minors.

This past week, the Massachusetts Gaming Commission (MGC) passed a new regulation that requires sports venue-associated operators to include a "21+ warning label" as part of their advertising efforts. The label is intended to make it clear that Massachusetts online sports bettors must be over the age of 20 to register and participate in any sports betting activities. The Commission passed the new regulation by a vote of 3-2.

Each sports venue-associated betting location will have 90 days to comply with this new regulation. It is directed at the following sports venues:

• Fenway Park - home of the Boston Red Sox (MLB)
  
• TD Garden - home of the Boston Bruins (NHL) and Boston Celtics (NBA
  
• Gilette Stadium - home of the New England Patriots
  

It's noteworthy that ownership of each venue opposes these regulations, questioning why these are the first such regulation to be set forth throughout the country. They are also concerned that the cost of making changes isn't warranted based on their beliefs that the appropriate signage will have no viable effect.

New Jersey to Extend Online Casino Gambling Through 2028

New Jersey was the first U.S. state to successfully pass online casino gambling legislation. That happened in 2013 when then-Governor Chris Christie signed a bill that allowed for online casino gambling in New Jersey for a 10-year period. The sunset provision was originally put in place so regulators would have an out should issues arise related to online casino gambling. Clearly, everything to this point can be deemed a success.

With the original 10-year period nearing an end, it was time for the State government to act. This past week, Governor Phil Murphy officially signed a new bill that extends access to online casino gambling through the end of 2028. The new bill will allow operators to continue operating under the current framework. That includes a 15% tax rate on gross online casino revenue.

It should be noted that under the current framework, the state has been able to claim over $900 million in tax revenue over the last 10 years. That's on gross revenue that has exceeded $6.2 billion over the same period.