- Despite repeated violations, Massachusetts sportsbooks are facing fines so small they’ve become the cost of doing business, not a reason to change behavior.
BOSTON – The Massachusetts Gaming Commission (MGC) handed out $50,000 in fines last week to four legal sportsbooks, FanDuel, BetMGM, PENN Sports Interactive, and Fanatics for a variety of compliance failures. Though this appears as if the commission is keeping them accountable, the reality is these penalties amount to little more than the cost of doing business for billion-dollar companies.
In short, it’s time for the regulators of Massachusetts sports betting to stop treating these violations like parking tickets.
A Breakdown Of Penalties and Fines
FanDuel accepted nearly 4,000 prohibited bets on Belarusian soccer…twice, and walked away with a $20,000 fine. The ban on Belarusian sports betting has been a major talking point over the last few years, yet Fanatics took 127 similarly illegal bets and paid $10,000 in fines.
BetMGM accepted nearly 2,000 LPGA bets before it was approved as a market in Massachusetts… another $10,000.
However, the worst of all? PENN received a $10,000 fine after sending marketing materials to people who had self-excluded either from problem gambling or their decision altogether.
Commissioner O’Brien Asks For More
When the amount of money being bet on sports in the US is billions per year, these token penalties aren’t going to change behavior. If anything, they reinforce a dangerous precedent: sportsbooks can break the rules, issue a quick apology, and move on with a slap on the wrist.
There’s no meaningful deterrent and in reality, that’s bad regulation.
Even Commissioner Eileen O’Brien recognized this during Thursday’s hearing, expressing discomfort with the leniency shown to PENN. She floated the idea of a $20,000 or $25,000 fine instead, but was overruled. That decision signals to operators that $10,000 is not just the minimum fine, but the likely maximum they’ll face.
These aren’t clerical errors but mistakes with real-world consequences, and they deserve real-world repercussions.
What’s even more troubling is that some of these violations weren’t even self-reported. Fanatics, for example, didn’t disclose its acceptance of prohibited bets on the Belarusian national soccer team; it was caught by the MGC’s own sports wagering division. That alone should warrant a steeper penalty.
If regulators want operators to take compliance seriously, then the consequences for breaking the rules must be serious as well. Without stronger enforcement, we’re sending a clear message to legal betting apps: follow the rules if it’s convenient, but if not, don’t worry too much.
Next Read: Wave a Flag, Lose a Bet: New Massachusetts Sportsbook Rule
