Massachusetts Regulators Dole Out $50K in Fines For Sports Betting Noncompliance

• The Massachusetts Gaming Commission fined several sports betting operators for sports betting noncompliance incidents
• BetMGM, Fanatics Sportsbook, FanDuel, and PENN Sports Interactive all received fines
• The Massachusetts Gaming Commission also discussed several new noncompliance issues, plus delved into sports prediction markets

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The Massachusetts Gaming Commission today levied fines against several of the commonwealth’s licensed sports betting operators for noncompliance incidents, plus discussed two new noncompliance issues, during a busy commission meeting.

BetMGM, Fanatics Betting and Gaming, FanDuel, and PENN Sports Interactive today all received civil administrative penalties for prior noncompliance incidents in the commonwealth.

In addition to the penalties, the commission also evaluated two new Massachusetts sports betting noncompliance incidents involving Fanatics Betting and Gaming and DraftKings.

$50K in Total Fines

The Massachusetts Gaming Commission approved several recommendations from the Investigations and Enforcement Bureau (IEB) for civil administrative penalties during today’s commission meeting.

Two incidents stemmed from FanDuel and Fanatics Sportsbook accepting bets on Belarusian soccer, both of which were discussed by the commission this past January. The commission has instituted a prohibition on sports bets on Belarus or Russian teams or athletes.

Fanatics Sportsbook accepted 127 bets for a total of $968.13 from Sept. 13, 2023, through March 22, 2024, on the Belarus national soccer team participating in European Champions qualification matches. The incident was not self-reported, but discovered by the sports wagering division on July 3, 2024. At the time of the discovery, the sports wagering division reminded the state’s licensed sports betting operators that bets on Belarus or Russian teams were not permissible.

The MGC agreed with the IEB to fine Fanatics Betting and Gaming $10,000 for the incident.

FanDuel accepted 3,871 bets on the Belarusian national soccer team for a total stake of $11,792 from March 20, 2023, through March 26, 2024. Upon being notified of the impermissible wagers, FanDuel did a complete audit of its systems and found it did so again from July 16, 2024, through July 18, 2024, accepting 178 bets for a total stake of $5,829.

The sportsbook reported that it misinterpreted the gaming commission’s prohibition.

The MGC agreed with the IEB to fine FanDuel $20,000 for the incident.

The commission also agreed to fine BetMGM $10,000 for improper bets on the LPGA. BetMGM accepted 1,934 bets on the LPGA from March 20, 2023, through May 14, 2024, for a total handle of $1,642.46. The LPGA has since become an approved sports betting market in the commonwealth, but at the time of the bets the market was still prohibited.

The final fine of the day was levied to PENN Sports Interactive for accidentally mailing out marketing materials to individuals who had placed themselves on the voluntary exclusion list. The IEB suggested a $10,000 fine, which the MGC ultimately agreed with, but not before one member made a case for it to be higher.

Commissioner Eileen O’Brien noted the incident with PENN “does not sit well with me.” She suggested a $20,000 or $25,000 penalty for the noncompliance incident, noting that $10,000 seemed to be the floor for a potential penalty.

Her fellow MGC members disagreed and kept the fine at $10,000.

Two Additional Noncompliance Events

In addition to the civil administrative penalties, two new noncompliance events were presented to the commission.

According to Nate Kennedy, attorney for the MGC, Fanatics Betting and Gaming accepted 36 wagers on Heisman Trophy futures between Jan. 22, 2025 and March 21, 2025 for a total stake of $545.70. This is a prohibited market in Massachusetts.

The MGC agreed to send the incident back to the IEB for further evaluation.

Finally, Zachary Mercer, general counsel for the MGC, reported DraftKing accepted 89 bets on points total props for an NCAA men’s basketball athlete for total stake of $1,655. DraftKings offered wagering on the points total of a player in the Oregon v. Arizona matchup occurring on March 23, 2025.

It was also sent back to the IEB for further evaluation.

Brief Discussion on Sports Prediction Markets

A scheduled discussion on the sports event prediction markets did not lead to any decisions or anything much beyond a general update on the markets to the commission members.

MGC Chairman Jordan Maynard kicked off the discussion by proclaiming the meeting segment was not designed to generate “soundbites” on the issue. He reminded the public that the safest way to bet on sports in the commonwealth is through its licensed sports betting operators.

MGC Deputy General Counsel Justin Stempeck walked the commission through the sports event prediction markets, how it’s offered by brokers, and who regulates the services. The discussion never went much beyond a general update on the markets and the litigation surrounding the issue.

Several states are vying for regulatory control of the sports event prediction markets, while brokers such as Kalshi and Robinhood believe their markets can only be regulated by the Commodity Futures Trading Commission.

O’Brien asked the commission be kept updated on the various lawsuits involving sports event prediction market.

The MGC did not take any official action on the topic.