Massachusetts officials begin bumper sportsbook licensing hearings
Bay State regulator to scrutinize six standalone sportsbooks including DraftKings and FanDuel
Officials from the Massachusetts Gaming Commission (MGC) have commenced a review of stand-alone mobile sportsbook license applications from six operators looking to expand into the state.
Operators understood to be facing scrutiny from the MGC include Bally Bet, betr, Betway, and PointsBet, as well as heavyweights DraftKings and FanDuel.
These operators applied to the MGC to operate on a stand-alone basis in the state, meaning they are not tethered to existing land-based operators.
Each prospective operator is required to attend and deliver a presentation laying out their plans in the state as well as providing information including financial statements and diversity strategies.
It is understood that no announcement will be made on which operators will be awarded a license until all the reviews are concluded, a process scheduled to end on January 17.
One of those operators, Bally’s faced questions from MGC officials regarding its sportsbook technology as well as pre-existing regulatory penalties levied in Arizona and Indiana, with the firm satisfying officials that lessons arising from the penalties had been learned.
Four operators have already been licensed on a tethered basis: BetMGM, which is tethered to the MGM Springfield property; Barstool Sportsbook, which is tethered to the Plainridge Park casino; and Caesars and WynnBET, which are both tethered to the Encore Boston Harbor property.
Under the licensing process, land-based operators can utilize two online skins, with Fanatics set to take the second skin at the Plainridge Park Casino; however the identity of MGM Springfield’s other online partner has yet to be confirmed.
A hearing into the Fanatics sports betting license application commenced last week, with the sports merchandizer providing initial details of its sportsbook strategy, as well as a practical demonstration of its software in a closed session with the MGC.
During that session, MGC officials raised concerns about Fanatics’ business model and its responsible gambling strategy following confirmation that it plans to leverage its wider merchandizing business as it pushes into the sports betting market.
Additional concerns were raised regarding an employment lawsuit settled by the firm in 2019 after allegations of racial discrimination were made by an employee. A final decision on the license is expected later this week.
Retail sports betting will go live in Massachusetts on January 31, with online sports betting set to go live in March.