Prompted by an inquiry from operator bet365, the Massachusetts Gaming Commission unanimously voted Thursday to reopen the sports betting application process. The decision, Chair Jordan Maynard noted, comes at a unique time, as prediction markets are proliferating across the U.S. and the Massachusetts regulator does not support those platforms.
“It’s been two years since the full launch,” Maynard said. “It makes sense that we look at these open licenses. I’m heartened that people want to come in when prediction markets, which we definitely don’t allow, want to enter for sports betting.”
According to staff, there are four untethered online sports betting licenses still available, as well as several tethered licenses. There was some discussion about whether or not it made sense to open the process in what commissioners termed a “saturated” market before an economic impact study was completed. But in the end, commissioners agreed that through the process, they would be able to gauge interest and understand if it will make sense for the state to add an eighth operator.
Staff attorney Justin Stempeck said bet365 indicated interest in a Category 3, or untethered, license. Bet365 is live in 16 U.S. states, including Illinois, New Jersey, Ohio, and Pennsylvania.
BallyBet, BetMGM, Caesars Sportsbook, DraftKings, Fanatics Betting & Gaming, FanDuel, and Penn Interactive (theScoreBet) are live in the state. BetMGM, Caesars, Fanatics, and theScoreBet are tethered to land-based casinos. Per the MGC meeting packet, the state can issue up to 16 mobile betting licenses (six tethered to casinos, three tethered to racetracks, seven untethered), and seven of those (four tethered, three untethered) are currently in use. In addition, there are four retail sportsbook licenses available.
Stempeck suggested that the commission not worry about the “flavor, and if people are interested, we should let them apply for a license.”
Interest vs. economic impact
Before discussion began, Commissioner Nakisha Skinner disclosed that she had downloaded the bet365 app and opened an account in a legal sports betting state. She said she has since deleted the app and is in the process of closing out her account, but she said she could be impartial.
Commissioner Eileen O’Brien raised the question of whether or not it made sense to open the process before knowing what the economic effect on the state would be, and also questioned if bet365 or other potential applicants would be interested in building a new retail sportsbook. Current law allows for a fourth in-person location in addition to Encore Boston Harbor, MGM-Springfield, and Plainridge Park.
“I’d like to see us learn what the impact would be before we ask people to put pen to paper,” O’Brien said. But the commission ultimately decided that the proper procedure would be to open an application window and assess impact as part of that process.
The commission did not set what the dates of the window would be. When it first approved operators in 2022-23, there were set dates and applicants went through a rigorous public suitability process. O’Brien voiced her belief that a new opportunity should mirror the previous one.
In other news …
The MGC approved some regulatory changes Thursday, including closing a loophole that may have allowed certain gift or prepaid cards to be purchased with credit card funds, which is not legal in the state. The commission also approved an alternate know-your-customer (KYC) method. Details were discussed in executive session, but per the commission packet:
FanDuel is requesting to add an alternate method, creating a waterfall approach to its
KYC process whereby the new waterfall approach will consist of device authentication, KBA
questions, and ID scan with selfie verification. Given that the ID scan with selfie verification is
an alternate method that a patron may use instead of KBA, this method requires Commission
approval.
In addition, MGC staff shared that gross gaming revenue during the 2026 Winter Olympics was $1.1 million and that the state took in $265,772.15 in tax revenue. Bettors made 804,424 wagers, and the 731,501 hockey bets represented 91% of all bets. Of the sports that were wagered on, the fewest bets (624) were placed on freestyle skiing.
