Massachusetts Gaming Commission Sends Clear Sports Event Contract Warning

• The Massachusetts Gaming Commission sent a warning to licensed sports betting operators regarding sports contracts
• The commission reminded operators that offering sports event contracts in Massachusetts is prohibited
• If offered, the commission warned it has the right to revoke sports betting licenses

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The Massachusetts Gaming Commission sent a clear warning to its licensed sports betting operators this week. If you offer sports event contracts in the commonwealth, you run the risk of having any of your gaming licenses revoked.

Commonwealth gaming regulators sent warning letters to each of its licensed sports betting operators to remind the companies that offering sports event contracts in the state is considered illegal gambling and prohibited by state law.

This comes on the heels of recent announcements from both DraftKings and FanDuel that they plan to begin offering sports event contracts to their customers in December.

Not Speaking to Contracts Outside of State

The Massachusetts Gaming Commission clearly warned operators that offering sports event contracts in state is prohibited and may result in action against the company.

“In the event you offer sports-related event contracts in Massachusetts or direct patrons to such event contracts being offered in Massachusetts, the Commission may take steps up to and including revocation of your license. In addition, to the extent any other regulator takes action against your license due to your operation in the prediction market space, such action may inform decisions related to your suitability in Massachusetts,” Dean Serpa, Executive Director of the Massachusetts Gaming Commission, wrote in the letters.

While the letters do not speak to operators offering sports prediction contracts outside of the state, the Massachusetts Gaming Commission said it reserves the right to address those topics in the future.

Massachusetts regulators and officials have made it quite clear over the past few months that offering sports prediction contracts in the commonwealth is against state gambling laws.

In September, Massachusetts Attorney General Joy Campbell filed a lawsuit against KalshiEX LLC for promoting and accepting online sports bets in the commonwealth without following state sports betting laws or having a license to do so.

The Attorney General’s Office alleged that Kalshi uses an online exchange to offer sports betting under the guise of “event contracts” in the state. Kalshi, the office notes, has neither applied for nor received a Massachusetts sports betting license from the Massachusetts Gaming Commission (MGC), as required by law.

DraftKings, FanDuel To Offer Sports Event Contracts

The two largest sports betting companies in the country both unveiled plans to begin offering sports event contracts before the year is out.

DraftKings last week announced plans to launch DraftKings Predictions “in the comings months,” officially jumping into the predictions markets. It will do so through its acquisition of Railbird Technologies Inc, a federally licensed exchange designated by the Commodity Futures Trading Commission (CFTC).

The company noted it will offer sports event contracts, but will only offer them in states were sports betting is not legal.

FanDuel this week announced it will launch its standalone FanDuel Predicts app this December. In its announcement, FanDuel noted it will offer sports event contracts in its initial offerings, but will not do so in states where sports betting is legal.

According to FanDuel, sports event contracts will not be available on tribal lands. As new states legalize sports betting, FanDuel will cease offering sports event contracts in those states. The company will restrict access to these jurisdictions using geolocation technology.

FanDuel today announced the planned launch of its standalone FanDuel Predicts app in December.

FD will offer sports event contracts in initial offerings. These will include baseball, basketball, hockey, and football.

FD will do so in states where sports betting is not legal pic.twitter.com/8gCYyeJxJS

— RLinnehanSR (@RLinnehanSR) November 12, 2025

Gaming Commissions Take Notice

Sports Betting Dime reached out to several gaming commission following DraftKings announcement to offers sports event contracts. The Illinois Gaming Control Board did not offer a specific comment, but a spokesperson noted the board previously issued memos to license holders that prediction markets constitute gambling activity under Illinois law.

A spokesperson for the Michigan Gaming Control Board did not have a comment on DraftKings’ potential business plans. However, it said it will continue to monitor industry development and will review proposals to ensure “they comply with Michigan law and provide appropriate consumer protections.”

Similarly, a spokesperson for the Arizona Department of Gaming reported to Sports Betting Dime the department previously communicated with its licensed operators that event wagering activities must be conducted through licensed operators in accordance with state law.

“Licensees are responsible for ensuring that any products or partnerships offered through their platforms comply with Arizona law and ADG regulations, including licensing suitability requirements. The Department takes its responsibility to maintain the integrity of the regulated gaming environment seriously and will continue to ensure compliance with state law,” the Arizona Department of Gaming spokesperson said.