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FanDuel Meets Criteria For Massachusetts Online Sports Betting License

Robert Linnehan

by Robert Linnehan in Sports Betting News

Updated Jan 9, 2023 · 1:43 PM PST

Boston Bruins center Patrice Bergeron congratulates left wing Brad Marchand
Oct 27, 2022; Boston, Massachusetts, USA; Boston Bruins center Patrice Bergeron (37) congratulates left wing Brad Marchand (63) after he scored against the Detroit Red Wings during the third period at TD Garden. Mandatory Credit: Winslow Townson-USA TODAY Sports
  • FanDuel joined Bally’s Interactive as operators meeting criteria for a Massachusetts Category 3 untethered license
  • The operators estimate spending approximately $50 million in locally based marketing during first five years of operation
  • The Massachusetts Gaming Commission continues hearings tomorrow with Betr

Barring any unforeseen circumstances, it’s very likely that FanDuel will be approved for a Massachusetts sports betting license in late January when voting on applicants begins.

The Massachusetts Gaming Commission found today that FanDuel reached all necessary criteria for an untethered Category 3 sports betting license.

FanDuel joined Bally’s Interactive as applicants that have so far reached criteria for a license. The commission continues their week of hearings tomorrow as micro-betting specialist Betr comes before the panel to present its application.

The commission will begin voting on application approvals on Jan. 18.

FanDuel Planning Millions in Marketing in Commonwealth

FanDuel’s online sportsbook is currently live in 18 states across the country that offer sports betting. FanDuel has over 14 million registered users in the U.S., President Christian Genetski said, and well over 350,000 registered users in Massachusetts.

“We’re focused on the long term and we’re committed to building a sustainable long term business, and in turn, a long term, sustainable market in Massachusetts. We want to do it the right way for both our customers and citizens of the commonwealth,” Genetski said.

Despite not having a headquarter in the state, Genetski said the company would likely look to open an office in Massachusetts moving forward.

“In this day and age, you need to go where the talent is,” he said.

David Jennings, FanDuel CFO, said the operator projects to generate over $200 million in sports betting tax revenue for the commonwealth over the first five years of operation. FanDuel Sportsbook Massachusetts also anticipates spending over $50 million in locally based marketing for the first five years.

All told, Jennings said between taxes and investment, FanDuel’s contribution to Massachusetts “will exceed over a quart-of-a-billion-dollars in the first five years alone.”

Responsible Gaming, DEI Strategies

FanDuel has a 42% female rate at its “C-Suite” level, with about an 18% underrepresented minority rate at that executive level, said Keita Young, the operator’s Senior Director of Diversity, Equity, and Inclusion.

“Our very own CEO Amy Howe, the only female CEO in this industry, serves as a global advocate for our gender pillar,” she said.

Commissioner Nakisha Skinner complimented FanDuel for its high rate of women at the executive level, but like other operators needs specific DEI goals moving forward if it receives a Massachusetts license.

Commissioner Brad Hill “threw a crinkle” into the proceedings and asked the FanDuel representatives to discuss an incident that occurred in Ohio this past weekend. The Cleveland Browns relieved team employee and former quarterback Bernie Kosar of his duties after he participated in a promotion with Tipico Sportsbook, in which the former NFL athlete placed a $19,000 moneyline bet on the Browns to defeat the Pittsburgh Steelers on Jan. 8.

It was the first bet placed on the Tipico Sportsbook online platform as part of Ohio’s sports betting launch on Jan. 1, but it violated the NFL policy on NFL employees betting on NFL games.

Hill asked the operator to discuss the scenario and lay out any potential safeguards FanDuel would employ to ensure a scenario such as that did not happen in Massachusetts.

FanDuel is in constant communication with the professional leagues, Genetski said, to work within their specific policies for league employees.

“These are, in effect, success stories about what a regulated legal market can do for integrity concerns. These instances are identified, they are reported, and they are handled,” he said.

Betr Up Next

The Massachusetts Gaming Commission will march on with its application hearings, as micro-betting specialist Betr will appear before the commissioners tomorrow at 10 a.m.

Betr, a sports betting operator touted as the first direct-to-consumer micro-betting sports betting platform in the world, opened and took its first bets in Ohio during the state’s Jan. 1 sports betting launch.

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