Politics

Massachusetts is weighing a bill to regulate and tax fantasy sports

The bill would impose a 15 percent tax on the gross revenue of companies like DraftKings.

DraftKings and sports betting.
Bear Duker, a marketing manager for strategic partnerships at DraftKings, works at his computer at the company's Boston headquarters in 2016. Stephan Savoia / AP

BOSTON (AP) — A public hearing is set for a proposal that would regulate and tax daily fantasy sports operators in Massachusetts.

The bill would impose a 15 percent tax on the gross revenue of companies, such as Boston-based DraftKings, that offer the online contests. Players compete for cash prizes by picking teams of real-life athletes.

Another provision that would charge fantasy sports operators registration fees of up to $100,000 to enter the Massachusetts market has raised concerns with an industry trade group.

A legislative committee will hear testimony on the bill Wednesday.

The measure gives the Massachusetts Gaming Commission, an agency that oversees casino gambling, regulatory oversight of fantasy sports.

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The Legislature needs to act by July 31. That’s when temporary authority allowing daily fantasy sports to operate in the state expires.