Massachusetts Authorities Levy $50,000 in Penalties for Non-Compliance in Sports Betting Sector
In a meeting today, the Massachusetts Gaming Commission imposed fines on several sports betting operators for instances of noncompliance. The affected companies include BetMGM, Fanatics Betting and Gaming, FanDuel, and PENN Sports Interactive.
During the meeting, the commission discussed two new potential noncompliance issues involving Fanatics Betting and Gaming and DraftKings. However, these issues were not part of the fines issued today and will be further evaluated by the Investigations and Enforcement Bureau.
The fines levied today stemmed from two incidents at FanDuel and Fanatics Sportsbook, which involved accepting bets on Belarusian soccer matches in violation of the commission's restrictions. Fanatics Sportsbook accepted 127 bets totaling $968.13 from September 2023 to March 2024, while FanDuel accepted 3,871 bets totaling $11,792 during the same period, with an additional 178 bets taken from July 2024 to July 2024. Neither incident was self-reported by the companies.
The Massachusetts Gaming Commission fined Fanatics Betting and Gaming $10,000 for the incident and fined FanDuel $20,000. FanDuel reported that it had misinterpreted the commission's prohibition.
Another fine was issued to BetMGM for accepting 1,934 bets on the LPGA between March 2023 and May 2024, totaling $1,642.46. The LPGA was not yet an approved sports betting market at the time of the bets.
A final fine was imposed on PENN Sports Interactive for accidentally mailing marketing materials to individuals on the voluntary exclusion list. The Massachusetts Gaming Commission agreed with a suggested fine of $10,000, but Commissioner Eileen O'Brien argued for a higher penalty, suggesting $20,000 or even $25,000. However, her colleagues rejected her proposal, and the fine was set at $10,000.
In addition to these fines, the commission also reviewed two new noncompliance incidents, one involving Fanatics Betting and Gaming and another involving DraftKings. These incidents will be further evaluated by the Investigations and Enforcement Bureau.
The commission also held a brief discussion on sports prediction markets during the meeting. No decisions were made, and the discussion mainly served as a general update on the markets for the commission members. The safest way to bet on sports in Massachusetts, according to Chairman Jordan Maynard, is through the state's licensed sports betting operators.
Sports betting operators Fanatics Betting and Gaming and FanDuel were fined $10,000 and $20,000 respectively for accepting wagers on Belarusian soccer matches, which violated the Massachusetts Gaming Commission's restrictions. Meanwhile, BetMGM was fined for accepting bets on the LPGA, an unapproved sports betting market at the time.
