Massachusetts Gaming Commission Sets Adjudicatory Hearing for Fanatics Betting and Gaming

• The Massachusetts Gaming Commission requested an adjudicatory hearing for Fanatics Betting and Gaming
• The Fanatics Sportsbook accepted a wager on a Boston College football game, which is prohibited in the state
• The prohibited sports betting market was incorrectly turned “on” by a football trader

Fanatics Betting and Gaming is heading to an adjudicatory hearing with the Massachusetts Gaming Commission after it accepted a singular bet on a prohibited sports betting market.

The Massachusetts Gaming Commission unanimously agreed to hold the hearing with Fanatics Betting and Gaming after its Fanatics Sportsbook accepted a $50 bet on a Boston College football game against Southern Methodist University. The commission prohibits all sports betting on Massachusetts colleges or universities unless they’re participating in a national tournament.

An adjudicatory hearing will include all involved parties participating in a legal review of the incident.

Market Incorrectly Turned “On”

Fanatics Betting and Gaming self-reported the incident to the Investigations Enforcement Bureau (IEB) and the MGC on Dec. 6 at 5:55 p.m. that it accepted a $50 bet on a Dec. 28 matchup between Boston College and Southern Methodist University at Fenway Park for the “Wasabi Fenway Bowl.”

The bet was placed on Dec. 5 at 2:21 p.m. A Fanatics Betting and Gaming employee determined the prohibited market was open for bets from was from Dec. 5, 11 a.m., through Dec. 6 at 5:50 a.m. It was determined that a Fanatics Betting and Gaming football trader incorrectly set the market to “on” and it was an isolated incident involving just the one employee.

“Essentially, it’s my understanding from speaking with Fanatics is a single person in their system made an error. Basically, it was a human error, and Fanatics wants to reiterate double checking all the events before making them available to the public,” said Zach Mercer, IEB attorney.

The MGC has three potential options to take when dealing with these incidents. The commission can designate the IEB to investigate the incident further, it can call for an adjudicatory hearing for the incident, or it can issue a civil administrative penalty to the operator, which the operator can then appeal.

The MGC unanimously agreed that an adjudicatory hearing would be the correct course of action for the incident.

Adjudicatory Hearing Necessary Now

The MGC actually discussed the Fanatics Betting and Gaming non-compliance incident in early December. However, most of the MGC members seemed to agree at that meeting that an adjudicatory hearing would not be necessary.

At the Dec. 14 meeting, the MGC agreed that a “civil penalty” would likely be necessary for Fanatics Betting and Gaming. To be consistent with prior actions, the MGC agreed to have the IEB look into the incident and come back with a summary and suggested course of action at a later meeting.

No new information was presented at today’s meeting, but the MGC still agreed an adjudicatory hearing was necessary.

Fanatics Betting and Gaming will have the option to appeal the decision for a hearing.