- The Massachusetts Gaming Commission has fined PENN Sports Interactive $10,000 for taking illegal bets
- The commission also opened a new noncompliance event investigation into Fanatics Betting and Gaming
- Fanatics Betting and Gaming allegedly accepted a number of bets on a non-Division I NCAA basketball team
The Massachusetts Gaming Commission put one noncompliance matter to bed, while simultaneously opening a new investigation into another.
The Massachusetts Gaming Commission approved a civil administrative penalty to PENN Sports Interactive for accepting a number of bets on an NCAA non-Division I basketball team earlier this year.
The commission approved the fine, but also agreed to revisit the way PENN Sports Interactive’s sports betting operator, ESPN BET, finalized the illegal bets for customers.
Should All Bets Have Been Voided?
MGC Investigations and Enforcement Bureau (IEB) Counsel Nathaniel Kennedy reminded the commissioners that ESPN BET accepted 249 bets on 27 games that featured at least one non-Division I team in 2024. Massachusetts only allows sports bets on Division I NCAA teams.
ESPN BET accepted a total of $12,075 from customers on the games. The operator chose to refund losing bettors their original stakes and allow winning bettors to keep their funds, according to Kennedy.
Commissioner Eileen O’Brien took exception to this course of action, believing ESPN BET should have voided all bets taken on these games, as they were technically illegal bets.
“According to our statute, these all should have been voided. The monies, winnings, everything should have been fixed. If they wanted to let them keep as a goodwill gesture, a customer satisfaction gesture, to the people who won some sort of bonus bets or cash, I wouldn’t have a problem with that. But in my view these bets should have been voided, win or loss.”
O’Brien eventually voted no against the measure, which passed by a 4-1 vote. However, her fellow commissioners agreed that the issue of operators voiding all illegal bets will be revisited during a future meeting.
Fanatics Betting and Gaming Facing Noncompliance Event
Additionally, the IEB presented regarding Fanatics Betting and Gaming improperly accepting 83 bets on a Boston College vs. Michigan State NCAA football game on Sept. 21, 2024, for a total handle of $3,325.88.
Massachusetts sports betting law prohibits bets on in-state colleges or universities unless they’re playing in a national tournament.
The sports betting operator accepted the illegal bets from Sept. 15, 2024, through Sept. 20, 2024. Kennedy reported that a members of the Fanatics’ trading teams erroneously manually overrode an offering limit for the game, allowing the illegal bets to be taken.
Fanatics voided the wagers, except for those that had already been cashed out by customers.
O’Brien suggested the issue be sent back to the IEB for further investigation to determine why the bets were not voided (similar to the above ESPN BET issue). The commissioners agreed and the matter was sent back to the IEB for further evaluation.
Past Noncompliance Matters Settled
Two previous noncompliance matters were settled over the summer, as the MGC made a final decision against PENN Sports Interactive and its previous sports betting partner Barstool Sports. The MGC fined PENN Sports Interactive $25,000 for advertising noncompliance related to Barstool Sports’ personality Dan “Big Cat” Katz and his “Can’t Lose Parlay” bet.
The promo began in 2019 and typically featured boosted parlays of three-to-four legs promoted by the popular sports media personality on social media and the former Barstool Sportsbook app. Barstool Sports is no longer a partner with PENN Sports Interactive.
The company argued that it was widely known that Katz was an “awful bettor” and the promotion was clearly satirical.
Despite the argument that the promo was satire and most Barstool bettors were in on the joke, Commissioner Brad Hill said it was the regulatory body’s duty to protect the 10% of the population who may not know the historic background of the promotion and who may just bet on the parlay because they see Katz doing so.
The MGC levied the fine on Aug. 27, 2024.
Additionally, the MGC finalized a noncompliance matter against DraftKings on the same date, fining the company $30,000 after it accepted 864 illegal bets on UTR Pro Series tennis events from March 10 through March 22, 2023. The UTR Pro Series is an unapproved event on the state’s sports betting event catalogue.
The bets amounted to a total handle of $7,867. They were broken down as follows:
- 68 wagers on UTR Pro Series in Barcelona, Spain ($965.47)
- 22 wagers on UTR Pro Series in Newport Beach, California ($589.41)
- 774 wagers on UTA Pro Series in Tigre, Argentina ($6,312.12)
The Massachusetts Gaming Commission recently fined PENN Sports Interactive $10,000 for violating state regulations. The commission found that the company had allowed individuals under the age of 21 to place bets on their platform, which is a direct violation of state law.
PENN Sports Interactive, a subsidiary of Penn National Gaming, operates an online sports betting platform in Massachusetts. The company has been operating in the state since sports betting was legalized in 2019.
The commission launched an investigation into PENN Sports Interactive after receiving multiple complaints from concerned parents and lawmakers. The investigation revealed that the company had failed to properly verify the ages of individuals placing bets on their platform, leading to minors being able to access and use the platform.
In response to the fine, PENN Sports Interactive issued a statement apologizing for the oversight and promising to implement stricter age verification measures moving forward. The company also stated that they take the issue of underage gambling very seriously and are committed to ensuring that their platform is only accessible to individuals who are of legal age to gamble.
The Massachusetts Gaming Commission has warned other sports betting operators in the state to take this incident as a cautionary tale and to ensure that they are complying with all state regulations regarding age verification and responsible gambling practices. Failure to do so could result in similar fines or even the revocation of their operating license.
Overall, this incident serves as a reminder of the importance of responsible gambling practices and the need for sports betting operators to be diligent in verifying the ages of their users. It also highlights the role that regulatory bodies play in ensuring that companies are held accountable for any violations of state laws.
