Massachusetts regulators have imposed financial penalties on several major sports betting operators after identifying multiple compliance failures tied to prohibited wagering markets. The Massachusetts Gaming Commission (MGC) approved eight separate civil penalties totaling $80,500, affecting five licensed operators: BetMGM, Caesars, DraftKings, Fanatics, and FanDuel.

The violations, which were disclosed by the operators themselves, span a period beginning in September 2023 and continuing through July 2025. Regulators reviewed incidents involving improper college prop bets, restricted betting markets, and wagers placed on athletes or events that fall outside state rules.

“We, as a commission, come down pretty hard on the operators in these noncompliance matters where we need to, and with good reason,” said MGC Commissioner Nakisha Skinner during a recent hearing, according to SBC Americas. “But the operators have stepped up their review of these matters and the protocol and remedial measures they have put in place to catch them.”

College Betting Rules at the Center of Violations

A large portion of the penalties stems from bets placed on college athletes, which are not permitted under Massachusetts regulations. The state allows prop betting only on professional sports, making any similar wagers on NCAA athletes a violation.

FanDuel received the smallest penalty, $5,000, after offering player prop bets tied to a Nebraska quarterback’s passing performance in September 2023. Caesars was fined $10,000 for a separate issue involving soccer, where it accepted wagers on red cards during the UEFA European Championship. Regulators prohibit bets linked to officiating decisions.

DraftKings and BetMGM each faced multiple penalties. DraftKings incurred a $6,500 fine after accepting 13 wagers totaling $457 on a University of Michigan running back. The company also received a $10,000 penalty for hosting an impermissible player prop market during an NCAA basketball game between Arizona and Oregon. That market remained active for two hours and resulted in nearly 90 bets totaling $1,600.

BetMGM was fined $6,500 for allowing a single $10 prop bet involving a UNLV wide receiver’s receiving yards during a 2024 matchup. Regulators determined the wager should not have been available under state rules.

Fanatics was also penalized for college-related violations. The operator received $7,500 for accepting 36 wagers on the 2025 Heisman Trophy winner between January and March 2025, with a total handle of $545.

UFC Wagering Issues Lead to Larger Penalties

Beyond college sports, regulators identified additional violations tied to betting on UFC fights. These cases resulted in some of the highest fines issued in the latest round.

Fanatics received a $20,000 penalty—the largest among the group—after allowing 154 bets on a bout involving bantamweight fighter Petr Yan in July 2025. BetMGM was also penalized for similar issues, receiving a $15,000 fine tied to multiple incidents involving wagers on Yan between 2024 and 2025.

The commission noted that these wagers fell outside permitted betting markets, contributing to the higher penalties.

Regulators Emphasize Oversight and Enforcement

The MGC unanimously approved all eight penalties. Commissioner Eileen O’Brien supported the decisions but indicated that higher fines might have been justified in several cases.

Caitlin Monahan, director of the commission’s Investigations and Enforcement Bureau, explained that regulators weighed several factors when determining penalties. These included the number of bets placed, total dollar amounts, whether operators reported the issues themselves, and how companies responded after discovering the violations.

“As you remember, the commission recently rendered a decision related to a number of incidents of noncompliance by BetMGM. The commission asked the IEB to hold its recommendations on a number of other matters until that BetMGM decision was issued so the IEB could take that decision into consideration in reaching its recommendations. Now that the decision is issued, we have finalized the eight recommendations you’ll hear about today. It’s important to reemphasize that in making these recommendations the IEB has done its best to follow the guidance of the commission as expressed in its previous decisions,” she said.

MGC Chair Jordan Maynard also defended the state’s regulatory system, highlighting its consumer protections.

“These are retrospective,” said Maynard. “We’re looking back on pretty much close to the launch of sports wagering in Massachusetts in some of these cases.” He added that the legal betting framework offers stronger safeguards compared to unregulated markets. “If you’re in the illegal market, or the pseudo-regulated market, you see in the news right now there’s a lot of problems with dispute resolution. If you’re in the legal market, we can make sure patrons are made whole,” he said.

Continued Scrutiny Across the Industry

The latest penalties follow earlier enforcement actions by the commission. In 2025, DraftKings paid $450,000 for allowing customers to fund accounts with credit cards, which is prohibited under state law. Fanatics and PENN Entertainment have also faced fines for violations related to college betting restrictions and advertising practices.

Separately, BetMGM is under review for alleged promotional violations involving emails sent to underage individuals and those on self-exclusion lists. The commission has not yet issued penalties in that case but plans to hold a formal hearing.

Massachusetts regulators continue to monitor sportsbook activity and review compliance reports as the market evolves. Officials have indicated that enforcement efforts will remain active as they address violations and ensure operators follow state rules.