FanDuel and BetMGM Allowed Illegal Bets on LPGA Events in Massachusetts

FanDuel and BetMGM Allowed Illegal Bets on LPGA Events in Massachusetts
  • Both FanDuel and BetMGM accepted improper online sports bets on the Ladies Professional Golf Association last year
  • FanDuel accepted more than $78,000 in bets on the LPGA, while BetMGM accepted more than $1,600
  • The commissioners are hoping for more information on how these bets were allowed over the course of several months

FanDuel and BetMGM’s inability to block Massachusetts users from placing online sports bets on women’s golf over the past year may lead to an adjudicatory hearing for both operators.

The Investigations and Enforcement Bureau (IEB) today revealed to the Massachusetts Gaming Commission that both FanDuel and BetMGM accepted thousands of improper bets on the Ladies Professional Golf Association (LPGA) prior to the commission legalizing the association as a valid betting market.

The commission agreed that more information, however, is necessary before deciding on the next course of action for the operators.

LPGA Not Valid Market Until June 2024

Diandra Franks of the IEB informed the MGC that the improper bets were discovered after the bureau sent out an email to its licensed operators reminding them that the LPGA was not an approved sports betting market.

“The noncompliance was discovered in response to an email sent out by our sports wagering division that the LPGA was not approved at the time,” Franks noted.

The email from the sports wagering division was sent out to all licensed operators on May 15, 2024. The MGC approved the LPGA as a sports betting market just a few weeks later on June 6, 2024.

According to Franks, BetMGM accepted 1,934 bets on the LPGA from March 20, 2023, through May 14, 2024, for a total handle of $1,642.46. FanDuel accepted 7,155 bets on the LPGA from March 26, 2023, through June 6, 2024, for a total handle of $78,254.56.

Commissioner Eileen O’Brien suggested that both incidents be sent back to the IEB so the bureau could investigate more into how the improper bets were made on a market that had not been approved by the MGC.

I’m curious as to how and why this happened. That information would  have a bearing for me on what fine or consequence this would result in,” she said. 

The MGC agreed with her assessment and sent the incidents back to the IEB for further evaluation. An adjudicatory hearing may be necessary in the future.

Bovada Out of Commonwealth

The MGC did not discuss Bovada recently placing Massachusetts on its list of restricted states. Commissioner Nakisha Skinner had previously shown an interest in discussing the unregulated offshore gaming operator with the Massachusetts Attorney General’s Office and what could be done to force it to leave the state.

Bovada added Massachusetts to its list of restricted U.S. states earlier this week. The course of action came 19 days after the Massachusetts Attorney General’s Office issued a cease-and-desist letter to Harp Media B.V. and Hove Media, collectively known as Bovada.

Massachusetts is the 14th state added to the restricted list. Last month, Bovada restricted access in Kansas, Louisiana, and Pennsylvania. All three states had sent the illegally operated offshore gaming company a cease-and-desist notice, Bovada never acknowledged receipt of the notice, and then added the states to its list of restricted markets without any notice.

The offshore operator currently restricts access in 14 states and Washington, D.C. The restricted U.S. markets are as follows:

  • Colorado
  • Connecticut
  • Delaware
  • Kansas
  • Louisiana
  • Maryland
  • Massachusetts
  • Michigan
  • Nevada
  • New Jersey
  • New York
  • Ohio
  • Pennsylvania
  • Washington, D.C.
  • West Virginia

No other states have currently issued Bovada a cease-and-desist notice.

FanDuel and BetMGM, two popular sports betting platforms, have recently come under fire for allowing illegal bets to be placed on LPGA events in Massachusetts. The Massachusetts Gaming Commission (MGC) has launched an investigation into the matter, as it is illegal to bet on women’s golf events in the state.

The issue came to light when a concerned citizen reported seeing bets being offered on LPGA events on both FanDuel and BetMGM’s platforms. The MGC quickly launched an investigation and found that both companies had indeed been offering bets on LPGA events, which is against Massachusetts state law.

In response to the investigation, FanDuel and BetMGM have issued statements acknowledging their mistake and apologizing for any confusion or inconvenience caused. Both companies have since removed all LPGA events from their platforms and have taken steps to ensure that similar incidents do not occur in the future.

The MGC has stated that they take this matter very seriously and will be working closely with FanDuel and BetMGM to ensure that they are in compliance with all state laws and regulations moving forward. They have also warned other sports betting platforms to be vigilant and ensure that they are not offering bets on illegal events.

This incident serves as a reminder of the importance of following all state laws and regulations when it comes to sports betting. While FanDuel and BetMGM have taken steps to rectify the situation, it is crucial for all sports betting platforms to be aware of and adhere to the laws of the states in which they operate.

In conclusion, the illegal bets on LPGA events in Massachusetts by FanDuel and BetMGM serve as a cautionary tale for all sports betting platforms. It is essential for companies to be diligent in ensuring that they are in compliance with all state laws and regulations to avoid facing similar consequences in the future.