Massachusetts Legal Sports Betting Regulators fine MGM, PENN, and Wynn

Boston Red Sox fans enter the stadium as Massachusetts experienced better sports betting results in August. — Boston Red Sox fans enter the stadium on Opening Day before playing the Baltimore Orioles at Fenway Park. Photo by Paul Rutherford/Getty Images/AFP

Massachusetts sports betting regulators have been closely examining the operations of its licensed sports betting providers and recently imposed fines totaling $50,000 on three retail sportsbooks.

The Massachusetts Gaming Commission (MGC) discovered that MGM Springfield (BetMGM), Plainridge Park (Barstool Underscoreg), and Encore Boston Harbor (WynnBET) had all breached regulations related to legal sports betting in the state by accepting bets on in-state college teams. This violation occurred during the month of February.

In Massachusetts, sportsbooks are only permitted to accept bets on in-state college teams if the teams are participating in tournaments with four or more competing teams, such as March Madness or the NIT Tournaments. Any other events would be considered unauthorized betting markets.

Although not the most egregious offenses committed by Massachusetts sportsbooks, state regulators discovered that the three physical sports betting locations did breach laws and were subject to moderate penalties.

According to the commission, the fine serves two purposes: as a consequence for breaking laws and regulations, as well as a deterrent to prevent future violations in the Massachusetts Sports Wagering Catalog.

$20,000 fine for MGM Springfield

During its initial week of operation, MGM Springfield was issued a $20,000 fine by Massachusetts gaming regulators for taking bets on non-tournament matchups between Harvard and Yale, as well as Harvard and Brown. Notably, Harvard is a local team based in Massachusetts.

MGM Springfield erroneously identified Harvard as a Connecticut school, leading to bets being placed on their games. However, Harvard is actually located in Massachusetts, making their games an unauthorized market and not permitted according to regulations.

A total of 28 bets were placed on the two games in question, amounting to $1,200 in wagers, all through kiosks at the MGM Springfield. The issues with their own retail casino were only discovered through a BetMGM audit following revelations of other properties accepting prohibited bets.

$20,000 for PENN’s Plainridge Park

Plainridge Park, which is owned by PENN National Gaming, and its online betting platform, Barstool Underscoreg, were fined $20,000 for accepting illegal wagers on college sports during their initial week of business in Massachusetts.

Similar to the MGM situation, the Massachusetts college team that was the subject of a bet, Merrimack College from North Andover, was mistakenly categorized as an out-of-state program, specifically a Florida-based school, rather than one located in the Bay State.

Merrimack College basketball betting was available for seven hours, resulting in 33 wagers totaling $6,800. It took 17 hours for the sportsbook and Kambi, its software provider, to recognize the error. Of the 33 wagers, 29 were made at betting kiosks while the remaining four were placed at the counter of Plainridge Park Casino.

Regulators believe that the school’s location error was unacceptable and that the employees at the counter should have noticed it when four retail bets were placed. This oversight led to a $20,000 fine being imposed.

$10,000 fine for Wynn’s Encore Boston Harbor

During its first week of operation in February, Encore Boston Harbor was fined $10,000 for accepting a bet on the women’s basketball program of in-state school Boston College.

The Boston College bet was one of five legs in a $70 parlay. The betting window for that game was open for approximately five hours, with only one bet being charged a fine. Encore Boston Harbor is currently awaiting the results of another hearing regarding Boston College’s women’s basketball program, which may result in additional fines and scrutiny for the Massachusetts retail sports betting provider.

The sportsbook was hastily put together with a limited betting menu due to time constraints leading up to the planned launch date of Jan. 31. Additionally, there were issues with communication between Encore Boston Harbor and their software provider GAN.

The communication issue was apparent during a hearing before the Commission but has now been resolved.

Fines on the way for DraftKings?

On Monday, there was a hearing in Massachusetts regarding DraftKings’ acceptance of bets on UTR (Universal Tennis Rating), a prohibited market in the Bay State.

DraftKings voluntarily disclosed the violations, and the company is permitted to respond to unauthorized transactions in additional U.S. regions where they operate. The unauthorized bets occurred from March 11 to March 22, with a total of 864 wagers amounting to $7,867 placed on events in Barcelona, Newport Beach, California, and Argentina.

The extent of the problems facing DraftKings goes beyond the three incidents of retail betting errors identified by the Massachusetts Gaming Commission. It is anticipated that DraftKings will face significant consequences and that both Massachusetts sports betting apps and retail providers will be held accountable by the commission.

Massachusetts’ legal sports betting regulators have demonstrated the effectiveness of their stringent oversight.

Explore our promotions for Massachusetts sportsbooks, including bonus codes for BetMGM, WynnBET, and DraftKings.

Written By:
Perry Sandra

Perry Sandra and betting go hand-in-hand. Both are characterized by “odds”. Dave fancies himself as one of the most dedicated sports and pop-culture junkies around, to the chagrin of his family and friends. Following sports for 50 years and writing about it for 20, Dave hasn’t found a sport yet that can’t contribute to 2-3 straight hours of couch time. That search remains ongoing. As a good old Canadian boy, hockey is in Dave’s heart, as is curling sadly. But evolution is a real thing and that’s why football, baseball, and just about every sport on the planet has become a passion. Dave isn’t afraid to kill some time obsessing over politics or the far-too-frequent awards shows the consume the airwaves.