- The Massachusetts Gaming Commission today held an adjudicatory hearing for DraftKings
- The MGC evaluated and discussed DraftKings’ durable suitability for a full five-year license
- No vote was taken today and the hearing will reconvene in February
DraftKings is seeking a full five-year sports betting license from the Massachusetts Gaming Commission and began the process today during a more than five-hour adjudicatory hearing to determine the operator’s suitability.
Despite the majority of the day’s hearing taking place behind the closed doors of an executive session, the Investigations and Enforcement Bureau (IEB) did publicly recommend the company be approved for a full license, contingent upon several qualifiers.
“You provide a great service to the commonwealth of Massachusetts, which is keeping people from the illegal market,” MGC Chair Jordan Maynard said.
Working With Temporary License Since 2023
DraftKings is one of seven sports betting platforms in the commonwealth to operate with a temporary category 3 sports betting license. DraftKings was approved for its temporary license in February 2023 and received its certificate on March 10, 2023, launching on the same day.
The MGC today started the process of publicly evaluating the company’s durable suitability for a permanent five-year sports betting license. Zachary Mercer, IEB general counsel, revealed early in the meeting that the bureau recommended DraftKings’ receive the license, but its recommendation is contingent upon the company addressing several concerns that came up in the IEB’s investigation.
To receive the full license, DraftKings will have to address the following:
- Provide updated fingerprints for several of its qualifiers
- In the IEB’s investigation, it was revealed DraftKings has a high-risk deficiency in one of its internal controls. It must remedy this deficiency within six months
- DraftKings must provide an update within one year on its durable suitability, which includes status of its civil litigation and regulatory discipline matters, and the company’s plan to reduce their frequency
Michael Banks, a civilian investigator for the IEB, reported DraftKings has committed over 50 regulatory violations in its licensed states, but is currently in good standing with each one.
Addressing Concerns Before Approval
After one of the lengthy executive sessions during the hearing, Maynard revealed that the MGC had several concerns with DraftKings that stemmed from the IEB’s report. He gave no details as to what they concerns were, but asked the MGC to seek additional information from audit and consulting firm RSM US before moving forward.
RSM US will address these concerns within 60 days with the MGC. The parties will reconvene in February to continue the hearing.
This durable suitability process will likely take place in the same way with the six other operators working with temporary licenses in the state. These include:
- Bally Bet
- BetMGM
- Caesars Sportsbook
- ESPN BET
- Fanatics Sportsbook
- FanDuel
DraftKings, a popular sports betting and daily fantasy sports company, has recently made a significant move in the world of sports betting by applying for a five-year license to operate in Massachusetts. This application marks a major step forward for the company as it looks to expand its presence in the rapidly growing sports betting market.
The application comes as Massachusetts lawmakers are working to finalize legislation that would legalize sports betting in the state. If approved, DraftKings would be able to offer its services to residents of Massachusetts, allowing them to place bets on a wide range of sporting events.
DraftKings has been a major player in the sports betting industry since its inception in 2012. The company offers a wide range of betting options, including traditional sports betting as well as daily fantasy sports contests. With a strong track record of success and a large customer base, DraftKings is well-positioned to capitalize on the growing demand for sports betting in Massachusetts.
In addition to its application for a five-year license in Massachusetts, DraftKings has also been active in other states that have legalized sports betting. The company currently operates in several states, including New Jersey, Pennsylvania, and Colorado, and has plans to expand into additional markets in the near future.
Overall, DraftKings’ application for a five-year license in Massachusetts is a significant development in the world of sports betting. If approved, the company will be able to offer its services to residents of the state, further solidifying its position as a leader in the industry. As the sports betting market continues to grow, DraftKings is well-positioned to capitalize on this trend and continue to expand its presence across the country.
