Massachusetts Gaming Commission Issues $50,000 in Fines for Sports Betting Violations
The Massachusetts Gaming Commission (MGC) handed down $50,000 in fines to four licensed sports betting operators during a recent meeting addressing multiple compliance violations. BetMGM, Fanatics Sportsbook, FanDuel, and PENN Sports Interactive were all penalized for previous infractions. The commission also reviewed two additional noncompliance concerns and briefly discussed the topic of sports prediction markets.
Breakdown of Fines
Following recommendations from the Investigations and Enforcement Bureau (IEB), the MGC approved civil administrative penalties for several violations, including the acceptance of prohibited bets and violations of marketing rules.
Fanatics Sportsbook was fined $10,000 after taking 127 bets totaling $968.13 on the Belarus national soccer team during European Championship qualifiers between September 13, 2023, and March 22, 2024. These wagers violated a Massachusetts ban on betting involving Belarusian or Russian teams or athletes. The incident, not self-reported by the operator, was uncovered on July 3, 2024, by the MGC’s sports wagering division.
FanDuel received the largest penalty of $20,000. The operator accepted 3,871 bets from March 20, 2023, to March 26, 2024, and an additional 178 bets from July 16 to July 18, 2024, on Belarusian soccer, amounting to a combined total stake of over $17,000. FanDuel stated the activity was due to a misinterpretation of the commission’s betting restrictions.
BetMGM was fined $10,000 for allowing 1,934 bets on LPGA events between March 20, 2023, and May 14, 2024, during a period when the LPGA was not yet an approved betting market in the state. Though LPGA betting is now allowed, the wagers during the specified timeframe were unauthorized.
PENN Sports Interactive was also fined $10,000 after marketing materials were mistakenly sent to individuals who had enrolled in the state’s voluntary gambling exclusion program. Commissioner Eileen O’Brien expressed concern over the incident and advocated for a steeper fine, suggesting $20,000 to $25,000. However, the majority of the commission maintained the penalty at $10,000.
New Compliance Issues Under Review
Beyond issuing fines, the MGC reviewed two fresh noncompliance incidents.
Fanatics Betting and Gaming reportedly accepted 36 Heisman Trophy futures bets from January 22 to March 21, 2025, totaling $545.70. The market is considered prohibited in Massachusetts. The commission opted to send the matter back to the IEB for further examination.
DraftKings is under scrutiny for accepting 89 prop bets on an NCAA men’s basketball player’s point totals during a March 23, 2025 matchup between Oregon and Arizona. The wagers totaled $1,655. This issue will also be revisited by the IEB for additional evaluation.
Discussion on Sports Prediction Markets
The commission briefly addressed the evolving topic of sports prediction markets but took no action on the matter. MGC Chairman Jordan Maynard clarified that the discussion was informational and not intended for headlines or immediate decisions.
MGC Deputy General Counsel Justin Stempeck provided a general overview of the prediction markets, their operation through brokers, and the ongoing legal debates surrounding regulatory authority. Companies like Kalshi and Robinhood maintain that such markets fall under the jurisdiction of the Commodity Futures Trading Commission, while multiple states, including Massachusetts, are vying for oversight.
Commissioner O’Brien requested the MGC stay informed of legal developments impacting sports prediction markets. The commission concluded the segment without making any formal decisions.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com