The casino gaming industry’s national trade group urged Massachusetts legislators to include three components in any sports betting bill: permitting betting on college sports, allowing for less restrictive advertising, and adopting reasonable tax rates.
The three areas of concern cited by the American Gaming Association stem from the Senate bill passed last month, a version that differs markedly from what passed last summer in the House at roughly half the tax rate and with college sports betting included.
The AGA’s missive stressed that were Massachusetts to put a Senate-like version into law, the state would remain at a competitive disadvantage with not only current illegal betting operators but also surrounding border states like New York, Connecticut, Rhode Island, and New Hampshire.
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None of the 35 states that have legalized sports betting have placed an outright ban on collegiate sports betting, said the AGA, which estimates that wagering on collegiate sports accounted for roughly 20 percent of the $57.7 billion waged legally last year in the US.
“There has always been, and always will be, significant public demand for betting on collegiate sports,” said the AGA. “States have appropriately recognized that the real public policy question is not if collegiate sports wagering will occur, but whether it should take place through legal or illegal channels.”
Massachusetts institutions for higher learning are not fans of in-state college betting. Presidents and athletic directors from seven major Massachusetts colleges and universities wrote their own letter to the legislature two years ago, citing the “unnecessary and unacceptable risks” that would ensue from betting on their student-athletes.
The advertising ban would backfire as well, said the AGA, which described advertising as a “critical tool” for potential customers to hear responsible gaming messages as well as to steer them to regulated vs. unregulated sportsbooks.
“Competing states are already advertising in Massachusetts with no restrictions, which will only increase the confusion,” said the group.
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The AGA said that in the first two months of this year, internet searches in the state for illegal offshore sportsbooks increased by 22 percent year-over-year, with close to 60 percent of sportsbook searches focused on illegal sites.
The Senate proposed a 35 percent tax rate for online sportsbooks, 20 percent for bricks-and-mortar operations, with the House at 15 and 12.5 percent, respectively.
“Sports betting is a low margin business and will not be viable long term if a burdensome taxation framework is adopted,” said the AGA.
With the House rejecting the Senate sports betting bill, the chambers are expected to seek a compromise bill before the end of the formal legislative session on July 31.
Michael Silverman can be reached at michael.silverman@globe.com.