Massachusetts Investigates BetMGM over Banned Prop Bets
BetMGM has come under scrutiny in Massachusetts following an audit that revealed it was violating sports betting regulations.
BetMGM banner. BetMGM investigated in Massachusetts for accepting banned prop bets.
LISTEN TO THIS ARTICLE:The audit found that BetMGM accepted more than $200,000 in prop bets on NCAA football player performances during the 2023 season. This is in violation of state laws that prohibit betting on individual college athletes and led to the Massachusetts Gaming Commission (MGC) to launching a formal investigation.
In Massachusetts, betting on local college teams is restricted to tournament play involving at least four teams. However, prop bets on college athletes are completely banned. The regulations are designed to protect student-athletes from undue pressure and external influence.
BetMGM’s violations were first identified during an internal audit. However, they were not self-reported, which goes against the standard industry practice of gambling operators reporting their own compliance problems.
MGC Calls on Investigations and Enforcement Bureau
MGC Chair Cathy Judd-Stein has spoken about the need to protect student-athletes. She expressed her concerns over the infractions and reiterated that prop betting on college athletes is illegal in Massachusetts. Furthermore, the MGC has instructed its Investigations and Enforcement Bureau (IEB) to determine whether BetMGM should face penalties, which will be decided in an upcoming hearing.
Related: NCAA Gambles on Nationwide Player Prop Betting Ban
Furthermore, inspections by Gaming Laboratories International (GLI) uncovered even more violations. These included 41 additional prop bets on NCAA football players, 13 bets on college basketball performances, and 12 wagers on the Women’s NCAA Elite Eight. BetMGM also accepted bets on unsanctioned international sports events, including Belarusian leagues and Glory Kickboxing, both of which are banned in Massachusetts.
While the violations are serious, BetMGM has cooperated with the investigation, self-reporting the additional infractions found by GLI. The MGC plans to address all of these issues in one consolidated hearing, though a date has not yet been set.
More Regulation News
Investigation Comes During Critical Time for BetMGM
This investigation comes at an important time for BetMGM. The company reported $7.7 million in gross gaming revenue for the second quarter of 2024 and contributed $1.5 million in taxes to the state. However, it has fallen behind competitors such as DraftKings, which generated $73.5 million in gross gaming revenue, and FanDuel, which brought in $56 million. Therefore, the outcome of the hearing could have significant implications for BetMGM’s future in Massachusetts’ sports betting market.
RELATED TOPICS: Regulation
Latest News
Responsible Gambling
New Jersey Makes Significant Change to Gambling Self-Exclusion Program
Dec 24, 2024
Most Read
Parlays, Pressure, and Addiction - The Risks of Modern Sports Betting
Dec 20, 2024Must Read
Interviews
When Helping Others Is a Life-Long Mission - An Interview with Gordon Moody CEO, Monica Shafaq
Dec 17, 2024
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Massachusetts Investigates BetMGM over Banned Prop Bets