Massachusetts fines FanDuel $10K for improper bets

Anchal Verma December 6, 2024

SiGMA news

The Massachusetts Gaming Commission (MGC) imposed a $10,000 fine on FanDuel Sportsbook this week for allowing bets on in-state college teams, a prohibited activity under state law. While the incident involved only $11 worth of wagers, the fine highlights the MGC’s stringent approach to sports betting compliance.

Self-reported error sparks penalty

The issue arose when a FanDuel employee mistakenly lifted the ban on betting for NCAA games while setting up markets for the ACC Tournament, which included Boston College. FanDuel identified and reported the error to the MGC, noting that just three wagers had been placed before the mistake was corrected. Despite the minor impact, the MGC upheld a $10,000 penalty, citing its commitment to enforcing statutory regulations.

Commissioner Nakisha Skinner said of the decision. “I want to note that even though the commission has set a high priority for statutory violations, I’d want to recognise that this was an incident that involved three wagers for a total of $11. I want to make sure that when we go forward, any recommendation that comes from the IEB we consider the severity of the circumstances. We want to consider the degree of violation, if that makes sense, as we’re making sure the penalty is proportionate to the actual circumstances of the non-compliance issue.”

Massachusetts has gained a reputation as one of the strictest regulators in the US sports betting industry. The MGC’s firm stance is evident in its history of levying fines and pursuing compliance.

FanDuel’s fine is just one example of the Commission’s rigorous enforcement. The regulator previously pressured Penn Entertainment, leading to Barstool Sportsbook’s withdrawal from the Massachusetts market. Even after Barstool’s exit, the MGC continued to probe Penn over marketing practices.

DraftKings, another major operator, is also under scrutiny. The is investigating claims that the company allowed bettors to use credit card deposits, a violation in Massachusetts. DraftKings argues that these transactions occurred in other states where such practices are legal, but the MGC’s track record suggests it won’t shy away from imposing penalties if non-compliance is determined.