Massachusetts Gaming Commission Fines Fanatics Betting and Gaming $20k

• The Massachusetts Gaming Commission voted to fine Fanatics Betting and Gaming $20,000 for accepting prohibited bets
• Fanatics Betting and Gaming accepted 83 bets on a Boston College NCAA football game
• Commissioners differed on the severity of the fine, with one believing the amount should be higher

The Massachusetts Gaming Commission has fined Fanatics Betting and Gaming $20,000 for accepting prohibited bets on a Massachusetts collegiate football team.

The commission voted 4-1 to levy the fine against Fanatics Betting and Gaming for incorrectly accepting bets on prohibited events. Commissioner Eileen O’Brien cast the lone dissenting vote, noting that for a third similar offense she supported a heftier fine for the sports betting operator.

“As a general matter, I’m not satisfied with the fine. I think only going up $5,000 each time they do this is not much of a deterrent on the operator,” she said.

Bets on Boston College Led to Hearing

The Investigations and Enforcement Bureau (IEB) presented details of the incident to the commission earlier this year. The IEB reported to the commission in January that Fanatics Betting and Gaming improperly accepted 83 bets on a Boston College vs. Michigan State NCAA football game on Sept. 21, 2024, for a total handle of $3,325.88.

Massachusetts sports betting law prohibits bets on in-state colleges or universities unless the program is playing in a national tournament.

The sports betting operator accepted the illegal bets from Sept. 15, 2024, through Sept. 20, 2024. One member of the Fanatics’ trading team erroneously overrode an offering limit for the game, allowing the illegal bets to be accepted by the online platform.

The employee has since been let go from the company, Diandra Franks, enforcement counsel at the Massachusetts Gaming Commission, reported.

Fanatics voided losing wagers and paid out those that won.

How Can This Be Deterred?

Commissioner Nakisha Skinner brought up concerns over Fanatics Betting and Gaming allowing this error to occur from the action of one lone employee.

“I don’t see anything in the remedial measures that address how the operator will eliminate the ability of a single individual to make determinations that are incorrect or not aligned with what is permissible in Massachusetts,” she said.

Franks reported Fanatics Betting and Gaming has instituted levels of consequences for employees who make such mistakes. A manager, for instance, was let go from the company for a recent noncompliance incident.

This if the third noncompliance issue stemming from the sportsbook accepting prohibited bets, O’Brien said, and there needs to be more done to make sure this does not happen again. Increasing fines by $5,000 for each noncompliance event is not a deterrent.

“Compared with the revenue they make, I’m not so sure that’s the relevant metric for deterrent,” she said.