BetMGM Facing More Massachusetts Sports Betting Noncompliance Issues

• A recent outside audit of BetMGM’s sports betting markets revealed a number of new noncompliance incidents
• The sports betting operator hired GLI to conduct an audit of its markets after a number of noncompliance incidents earlier this year
• The operator accepted more than 15,000 prohibited NCAA football player prop bets over the course of the last season

A recent audit of BetMGM’s sports betting market by Gaming Labs International revealed a number of noncompliance issues in Massachusetts.

An Investigations and Enforcement Bureau (IEB) spokesperson detailed preliminary results of the ongoing audit to the Massachusetts Gaming Commission this afternoon, reporting the sports betting operator accepted a number of prohibited player prop bets on NCAA football, player props on men and women’s college basketball, and on prohibited Belarusian sports leagues.

The gaming commission will discuss these noncompliance issues during a future adjudicatory hearing with the online sports betting operator.

More Than 15,000 Prohibited NCAA Football Prop Bets

The original incidents were reported to the Massachusetts Gaming Commission this past February, with the IEB noting that BetMGM accepted more than 15,000 improper college football player prop bets in the commonwealth over the course of the season. Handle for those bets exceeded more than $200,000.

Additionally, it was found that BetMGM accepted several bets on whether or not penalty cards would be issued in a soccer match.

The incidents were not self-reported by BetMGM to the MGC. A member of the commission’s sports wagering team identified the improper bets and reported them to the commission.

In response, BetMGM hired Gaming Labs International to conduct an audit of their gaming markets to ensure no other improper markets were being offered to state bettors. The audit is ongoing, but it was found in the preliminary results that BetMGM had been offering several other prohibited markets in Massachusetts.

BetMGM self-reported the following noncompliance incidents that were discovered in the audit:

• Accepting improper bets on Belarusian sports leagues
• An additional 41 NCAA football player props from the last season, bringing the total up to 15,428 bets
• 13 player prop bets on two NCAA basketball games in the NIT for a total of $469.10
• 12 player prop bets on the NCAA women’s Elite Eight for a total of $208.34
• 106 bets on Glory Kickboxing, a prohibited sports league

These new incidents, plus the original NCAA football player props from earlier in the year, will be discussed by the MGC at a future adjudicatory hearing for BetMGM.

Operators Present Q2 Sports Betting Results

In other Massachusetts Gaming Commission news, the licensed online sports betting operators today presented their Q2 results to the commission.

Each operator presented their revenue totals and tax impact to Massachusetts from April 2024 through June 2024:

• DraftKings: $73.5 million in gross gaming revenue; $14.2 million in tax revenue
• BetMGM: $7.7 million in gross gaming revenue; $1.5 million in tax revenue
• Caesars Sportsbook: $2.3 million in gross gaming revenue; $436,000 in tax revenue
• Fanatics Sportsbook: $4.7 million in gross gaming revenue; $915,000 in tax revenue
• FanDuel: $56 million in gross gaming revenue; $11.2 million in tax revenue
• ESPN BET: $5.4 million in gross gaming revenue; $1.08 million in tax revenue