Massachusetts House passes $459 million economic growth bill with sports betting, but legalization depends on Senate



The Massachusetts House passed a $459 million economic development bill Tuesday night that includes funding for nonprofits affected by the coronavirus pandemic, local projects and language legalizing sports betting.

The Massachusetts House passed a $459 million economic development bill Tuesday night that includes funding for nonprofits affected by the coronavirus pandemic, local projects and language legalizing sports betting.

Lawmakers passed the economic development bill, 156-3, after two days of reviewing more than 500 amendments. The engrossed bill has a price tag that’s close to $100 million more than when it was first released by the House Ways and Means Committee last week.

“Amid the COVID-19 pandemic, the bill will preserve and create jobs in our state and enhance housing and economic opportunities for people in Massachusetts,” House Speaker Robert DeLeo said in a statement to MassLive Tuesday night.

The House bill, H.4879, sets aside more than $62 million for public entities and nonprofits statewide, especially those that have lost revenue during the coronavirus pandemic. That includes $5 million for the relocation of the Allied Health Service Programs at Springfield Community College, $3 million for the New England Aquarium and $2 million for grants that seafood processing plants could use for mechanical or technological upgrades needed to limit the spread of COVID-19 while operating.

Millions more were authorized for hodgepodge of local projects, ranging from $1 million for city of Newton to touch up the Gath Memorial Pool to $50,000 for the Berkshire Regional Planning Commission to conduct a study of cell towers in Berkshire County to $20,000 for a feasibility study for a meat processing plant in the area.

It also incorporates language from the governor’s “housing choice” bill, which requires a simple majority of local officials rather than a two-thirds majority approve zoning changes for certain developments, and proposes legalizing sports betting.

Legislators passed a bill that would make sports betting licenses available to a larger pool of candidates, rather than just those who have had experience with fantasy leagues.

The bill still offers three types of licenses: one for online and in-person betting at casinos, one for in-person betting at race tracks and one for sports betting on mobile or other digital-only platforms.

DraftKings, FanDuel, MGM and the Boston Red Sox, who have joined forces to push for sports betting legalization, welcomed the inclusion of sports betting language in the multi-million-dollar economic development bill.

“As we confront an economic downturn and budget shortfalls, this is a unique moment for the legislature to act to protect consumers, create jobs, and bring an infusion of tens of millions of dollars in much needed revenues to the Commonwealth,” the group wrote in a statement issued last week.

 
Sports betting debate

The amended House bill would also extend a license to a facility that was licensed to conduct a racing meeting during 2020, which could throw a bone to Suffolk Downs. The East Boston facility retained its simulcasting license until at least July 31, 2021 even though it ran its last live horse race in 2019.

License holders would need to pay a 15% excise tax, referred to as a “privilege tax,” of the operator’s adjusted gross sports wagering receipts. The bill also includes a 1% fee on sports bets placed in Massachusetts facilities, which would be divvied up among the owners of those facilities.

Sources familiar with the sports betting legislation told MassLive last week the House speaker supported the provisions in the economic development bill, but that such a proposal with sports betting language will face more scrutiny in the Senate.

Senate President Karen Spilka’s office said last week the economic development bill is a priority but that the House must first vote on the legislation and send it to the Senate for further consideration.

The Senate meets at 11 a.m. Wednesday to debate its own economic development bill, which does not include sports betting. The bill, S.2842, has more than 300 amendments, including a handful that would legalize sports betting.

Sen. Brendan P. Crighton, vice chair of the Joint Committee on Economic Development and Emerging Technologies, filed an amendment to insert sports betting language. His proposal is similar to the House version, though it doesn’t include a 1% facility fee or a fantasy contests.

“The exceptions are pretty significant, it opens it up to more operators,” the Lynn Democrat told MassLive in an interview. “We want to continue to advance the discussion around this, and bring really, consumer protections into something that quite frankly we already have going on in Massachusetts.”

Under Crighton’s amendment, the commission would have to consider requests from a sports organization to restrict or exclude a form of sports betting if the organization believes it runs contrary to public policy, is unfair to consumers or undermines the integrity of a sporting event. The commissioner would also have to designate a state law enforcement entity to investigate abnormal bets and alleged match fixing.

Restaurant and bar owners who want to be cleared for sports wagering, operating under Fair Play Massachusetts, say the House and Senate bills currently leave them out. Ryan McCollum, spokesman for the group, said pushing the bill to the fall might give lawmakers more time to discuss what a legal sports betting market should look like in Massachusetts.

”Whenever you’re introducing a new industry, you do not want to leave out folks who should be incorporated, such as small local businesses, and you don’t want to necessarily make monopolies,” McCollum said. “It’s not just about leaving them out. It can hurt them.”

When asked whether the Senate and House could reach a consensus on sports betting by Friday, the end of formal session, Crighton held off on making any predictions. He did say there’s a greater sense of urgency because of the revenue needed to recover as the state deals with the economic decline sparked by the coronavirus pandemic.

“You know what? We keep fighting for it,” he said. “A year ago when we were having these discussions, we weren’t talking about the need for revenue, but every little bit helps.”

This article is a reprint from MassLive.com. To view the original story and comment, click here


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