The state audit found the MGC failed to effectively oversee certain sports betting operations relating to advertising and training, and it mismanaged legal settlements.
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Massachusetts’ state auditor reported last week significant shortcomings in the Massachusetts Gaming Commission’s (MGC) oversight of sports betting operations, highlighting failures in advertising, review, training, and settlement management.
The audit, which covered 2020 to mid-2023, revealed the regulator did not examine online sports betting advertisements before release, raising concerns over consumer protection, regulatory enforcement, and the commission’s role within Massachusetts sports betting.
Key Takeaways
- The state audit found that the Massachusetts Gaming Commission failed to review sports betting advertisements before public release.
- Regulators also uncovered poor GameSense agent training and improper distribution of marketing materials to underage individuals.
- The audit coincides with heightened scrutiny of the Massachusetts sports betting industry, as lawmakers debate the legalization of online casinos.
The audit, conducted by State Auditor Diana DiZoglio’s office, revealed a number of instances of noncompliance. Seventeen advertisers from sportsbooks omitted the state’s problem gambling helpline, and 51 marketing materials were distributed to people under the age of 21 or with serious
gambling addictions.
Regulations explicitly prohibit targeting these groups, including the use of language or celebrity endorsements that appeal specifically to minors.
Auditors also flagged missing documentation for half of the 20 GameSense agents reviewed. GameSense, the MGC’s flagship responsible gambling program, hired agents on casino floors who did not receive adequate training. These agents were tasked with helping those at risk of gambling-related harm.
The review also found mismanagement of legal settlements with former commission employees.
“Our findings reveal regulatory breakdowns that we encourage the Commission to continue addressing over the course of the next six months, at which time we will conduct our post-audit review,” DiZoglio said in a statement.
MGC spokesperson Thomas Mills said the auditor’s recommendations would help improve “administrative efficiencies” and strengthen regulatory practices, according to the Boston Globe.
Public health advocates also criticized the commission for its lackluster approach to regulating sports betting advertising in the early stages of legalization.
Mark Gottlieb, executive director of the Public Health Advocacy Institute at Northeastern University, said, “The finding that the Commission failed to take a proactive role monitoring sports gambling advertising in the critical first months of Massachusetts sports betting is a cause for deep concern.”
Massachusetts lawmakers push for iGaming; DraftKings fined
The findings have been released against a backdrop of the ongoing debates in the state about legalizing online casinos. Major gambling brands like DraftKings and FanDuel back the legislation, arguing that billions are already spent on offshore casino sites.
However, opponents, including Encore Boston Harbor as well as hotels, food service, casinos, and airports labor union UNITE HERE Local 26, warn that legalization could risk job security and reduce tax revenue from land-based casinos.
The MGC has already imposed major fines on operators for regulatory violations. In July, Boston-based DraftKings was fined $450,000 after allowing customers to deposit illegally with credit cards.
Regulators found the sportsbook didn’t address the issue for nearly a year, leading to over 1,100 bets using funds from credit cards. Despite this, the audit has since urged the MGC to consider reviewing sports betting advertisements before they are published. The commission has since hired an independent auditor to review operator compliance and agreed to improve its training and record-keeping practices.