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DraftKings, FanDuel Latest To Violate Massachusetts College Betting Law

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2024-03-01

DraftKings, FanDuel Latest To Violate Massachusetts College Betting Law

The Massachusetts Gaming Commission Thursday opted to wait to consider how to handle two more violations of the state’s sports betting law and regulations until it has more information. It was revealed at the meeting that DraftKings and FanDuel allowed prop bets on individual athletes during college football season. Prop bets on single players and betting on certain college events is prohibited in the state.

According to a presentation by Investigations Enforcement Bureau attorney Zach Mercer, DraftKings allowed “promo” bets on a single player totaling $457.80 during the National College Football championship game between Michigan and Washington Jan. 8. The specifics of the bets were not shared.

Mercer also shared that FanDuel allowed betting on a Sept. 9, 2023 NCAA football game. Nine bets were placed totaling $69.81. Which game the bets were allowed on was not revealed nor where the specifics of the the bets.

The violations continue a trend in which operators in Massachusetts are struggling to prevent sportsbooks from allowing wagering markets on certain kinds of bets involving college athletes and teams. Earlier this week, the MGC fined Encore Boston Harbor $40,000 for allowing betting on a local college basketball team.

Massachusetts has complicated regulations around betting on college sports, including not allowing wagering on local teams unless they are playing in a tournament of four teams or more, and prohibiting prop bets on individual athletes.

Given the limited amount of information, the commission asked the IEB to collect more before it proceeds. In particular, commissioners asked the IEB to find out if the operators have performed audits that show that the incidents were isolated and learn how operators will prevent future violations. If not, the MGC will require audits and fixes.

The commission previously decided to hold an adjudicatory hearing on a similar BetMGM violation, and said it wants to see how that plays out and if it will offer any guidance on how to handle the DraftKings and FanDuel violations. The BetMGM hearing has not yet been scheduled.

During the meeting, the commission also approved an updated and shortened version of Caesars Sportsbook house rules, and renewed temporary Category 3 (online) licenses for platforms from BetMGM, BallySports, Caesars, DraftKings, ESPNBET, Fanatics Sportsbook, and FanDuel. BallySports is not currently live. It also renewed Category 1 retail sportsbook licenses for Encore Boston Harbor, MGM Springfield, and Plainridge Park.

Wednesday, the MGC gave final approval for WynnBET’s exit from the state, after hearing from the company that 75% of all funds had been withdrawn from consumer accounts as of Feb. 22, and that the company has settled 92% of all futures bets that won’t close within 30 days with consumers. Wynn SVP and general counsel Jacqui Krum said that the 8% of those with open bet tickets had been contact, in some cases multiple times.

WynnBET and Betr, the microbetting platform, exited Massachusetts in February, leaving consumers in the state with six online sports betting platforms to choose from.

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