The Massachusetts online sports betting tax rate will remain at 20% after a Senate discussion Thursday afternoon on the state budget.

Sen. John F. Keenan (D-Norfolk/Plymouth) proposed an amendment to the Senate’s FY 2025 Massachusetts budget to increase the state’s online sports betting tax rate from 20% to 51%, a 155% increase.

Amendment to increase the online sports betting tax rate from to 51% in Massachusetts was rejected

However, Keenan’s amendment was roundly rejected by his Senate colleagues.

The proposed tax rate would have put the commonwealth in line with New York, the most taxed sports betting state in the nation. Licensed operators in the Empire State pay 51% of their gross gambling revenue in taxes. In addition to higher taxes, each operator must pay a one-time $25 million license fee.

From March 2023 to April 2024, the first year of online sports betting in the Bay State, accounted for $135.7 million in tax revenues, Keenan said. At a 51% rate, the state could have collected more than $346 million for the year.

In April, the state reported about $49.3 million in taxable online sports wagering revenue. The total resulted in $9.9 million in tax revenue for the month. Had the commonwealth approved Kennan’s 51% rate, sportsbooks would have owed more than $25.1 million in tax revenue.

Furthermore, licensed sports wagering operators were also called out by Kennan for skipping Tuesday’s roundtable from the Massachusetts Gaming Commission.

It was the first open public hearing of the post-PASPA era in any legal jurisdiction regarding betting limits placed on patrons.

Commonwealth offers seven licensed online sportsbooks

Massachusetts currently has seven licensed online operators, six of which are active: Bally’s (will launch by July), BetMGM, Caesars Sportsbook, DraftKings, ESPN BET, Fanatics, and FanDuel.

Retail sports betting in Massachusetts first launched on Jan. 31, 2023. Retail operators pay a 15% tax. Mobile sports betting followed on March 10. Of course, online betting platforms are subject to a 20% tax rate.

Additionally, Delaware has a 51% tax rate as well. Despite the high tax rates, both New York and Delaware sportsbooks still manage to turn a profit year after year.

Pennsylvania requires operators to pay a one-time license fee of $10 million and a $250,000 renewal fee every five years. The state levies a tax rate of 36% on sports betting revenue.