Massachusetts regulator warns operators against offering sports event contracts
Massachusetts Gaming Commission issues notice to sportsbooks warning of potential license revocation for bringing prediction markets platforms to players in the Bay State
The Massachusetts Gaming Commission (MGC) has warned operators within the state against offering sports event contracts.
In a notice sent to license holders yesterday, November 13, the regulator cautioned that the offering of sports event contracts in the Bay State will be prohibited.
The MGC also stated that any regulatory disputes involving license holders in other states which pertain to prediction markets may affect their status in Massachusetts.
The notice read: “Several Massachusetts sports wagering licensees are considering or have begun the process of partnering with entities in the prediction market space.
“In the event you offer sports-related event contracts in Massachusetts or direct patrons to such event contracts being offered in Massachusetts, the Commission may take steps up to and including revocation of your license.
“In addition, to the extent any other regulator takes action against your license due to your operation in the prediction market space, such action may inform decisions related to your suitability in Massachusetts.”
The notice is the latest action Massachusetts has taken against the vertical.
In September, Massachusetts Attorney General Andrea Joy Campbell filed a lawsuit against prediction markets platform Kalshi for “promoting and accepting online sports wagers” without the required license.
Earlier this month, sports betting giants Flutter Entertainment and DraftKings both revealed the upcoming launch of prediction markets products as part of their respective Q3 earnings reports.
Flutter announced the launch of FanDuel Predicts, which is set to go live in states without legalized sports betting in December.
Similarly, the DraftKings Predictions platform will also target states where the operator doesn’t already have a legalized sportsbook.
Massachusetts is the latest state to take action against the rapidly growing prediction markets space.
States including Arizona, Michigan, Ohio, Illinois, and Nevada have all taken action against prediction markets platforms so far this year.
Last month, Kalshi launched a lawsuit against the New York State Gaming Commission after being sent a cease-and-desist order in the Empire State.
In April, Kalshi was also granted a temporary restraining order and preliminary injunction against the New Jersey Division of Gaming Enforcement by the state’s US district court, following on from its success against the Nevada Gaming Control Board in May.
The Arizona Department of Gaming hit Kalshi with another cease-and-desist order in May, as did the Illinois Gaming Board the month prior.
Three California tribes have also taken legal action against Kalshi this year, while the Maryland District Court rejected the platform’s bid for a temporary injunction in August after another initial cease-and-desist order.