Massachusetts Gaming Commission Issues Warning Against Prediction Markets
Massachusetts Gaming Commission Issues Warning to Operators
The Massachusetts Gaming Commission (MGC) has firmly informed gambling operators in the state that prediction markets are strictly prohibited. This warning highlights the Commission’s intention to regulate and restrict this type of betting activity within Massachusetts.
Potential License Revocation for Non-Compliance
Unlike some regulators who focus on broader jurisdictions, the MGC’s notice centers on activities within Massachusetts. The Commission explicitly prohibits operators from offering sports-related event contracts either directly or through affiliates within the state.
The letter, signed by Executive Director Dean Serpa, clearly states that any involvement with prediction markets targeting Massachusetts residents could lead to enforcement actions, including the possible revocation of an operator’s license.
Requirement for Written Compliance Response
Operators must provide a formal written response within 10 business days, outlining their plan to comply with the MGC’s directive. This demand for a detailed compliance plan sets Massachusetts apart from other states like Arizona, Nevada, and Ohio, which have issued warnings but not required formal written commitments.
Context and Industry Developments
The warning follows a recent closed-door meeting of the MGC to discuss prediction markets. It also comes shortly after FanDuel announced plans to launch a prediction market platform in collaboration with CME Group next month.
Simultaneously, the Nevada Gaming Control Board disclosed that FanDuel surrendered its retail license there, and DraftKings withdrew its applications, both actions linked to their intention to offer prediction markets.
Cross-State Regulatory Implications
While Massachusetts is focused on regulating local operations, it has indicated that it may consider enforcement actions taken by other states when evaluating the suitability of license holders within Massachusetts. For instance, if the Ohio Casino Control Commission revokes a license due to prediction market activities, the MGC could factor that into their own decisions.
Operators and Market Activity in Massachusetts
Leading operators such as FanDuel and DraftKings are advancing plans to offer sports event contracts and prediction markets. DraftKings, in particular, plans to launch prediction markets after acquiring the Railbird platform, which holds a license from the Commodity Futures Trading Commission.
Other licensed operators in Massachusetts include BallyBet, BetMGM, Caesars Sportsbook, Fanatics Sportsbook, and Penn Entertainment. Encore Boston Harbor operates a physical sportsbook but currently has no digital betting platform in the state.
Previous Legal Action Against Prediction Markets
This is not the first time Massachusetts has acted against prediction markets. In September, the state filed a lawsuit against Kalshi to prevent it from operating locally. The case was filed in Suffolk County Superior Court after the federal court declined to hear it.
A hearing is scheduled for next Tuesday, where the state will seek an injunction to stop Kalshi from offering its services in Massachusetts.
