As Massachusetts Prepares for Online Sports Betting Launch, Issues Arise

On February 23, 2023, the Massachusetts Gaming Commission (MGC) established March 10 as the target launch date for online/mobile sports betting in the state. That was certainly good news for Massachusetts residents who have been waiting their entire lives for the chance to legally place sports bets from home.

To date, the MGC has issued ten (10) temporary mobile sports betting licenses. Five (5) of them are tethered to the state's retail casinos and race tracks while the other five (5) untethered operators will be permitted to operate independently. Of the 10 licenses granted, only seven (7) of the mobile operators are expected to open their sports betting windows on launch day. Each licensee was required to pay a $1,000,000 application fee that will cover their licensing for three years.

It's worth noting that a 6th untethered license was issued to the Australia-based PointsBet. However, management at PointsBet made a last-minute decision to withdraw from the Massachusetts market. Instead, the mobile bookmaker has decided they want to focus on their Australian and Canadian operations, as well as the 14 states they are already operating in across the US.

PointsBet's departure will open the door for another applicant to seek approval to enter the Massachusetts markets.

MGA Begins Investigations Into Sports Betting Violations

According to Massachusetts sports betting legislation (Chapter 23N), no Massachusetts sports betting operator will be permitted to accept bets on college sports events if they involve in-state college teams. The only exception that will be granted is if an in-state team is involved in an NCAA tournament event that involves at least four (4) teams.

To date, all three retail casinos that are permitted to accept wagers have violated this ban. The three retail casino operators include Encore Boston Harbor Casino (WynnBET Sportsbook), MGM Springfield Casino (BetMGM), and Plainridge Park Casino (Barstool Sportsbook).

Within a few days of the January 31, 2023 retail sports betting launch, each of the aforementioned retail sports betting operators had accepted at least one bet on a banned college basketball game. To their credit, each operator self-reported their violations within a few hours of the infractions. To date, the MGA has not yet issued any fines for the violations, perhaps because of the self-reporting.

Now comes news that the Encore Boston Harbor Casino has accepted another series of banned bets. This time, wagers were inadvertently accepted through WynnBET kiosks on a Women's college basketball game that involved the Boston College Lady Eagles. According to WynnBET's management, the bets were accepted due to a computer glitch that neglected to block the game.

With this second reported violation in less than a month, the MGC has no choice but to launch an investigation, an investigation that is already underway.

While the investigation continues, it's important to note this ban is in place to protect the integrity of college sports. Such bans are also in place in about six (6) or seven (7) other states across the U.S. In time, the Massachusetts legislature might reverse this ban as confidence grows that safeguards are in place.