The Massachusetts Gaming Commission (MGC) has fined Fanatics Betting and Gaming $15,000 for accepting a prohibited wager on an in-state college team. The fine, recommended by the Investigations and Enforcement Bureau (IEB), was unanimously approved by the MGC in a 4-0 vote during a public meeting.

The incident occurred on December 13, 2023, when a $2 five-leg parlay was placed, including a bet on a Boston College men’s basketball game. According to Massachusetts state regulations, non-tournament college games involving in-state teams are not allowed to be included in sports betting. The leg was canceled by Fanatics before the game started, and the parlay ultimately lost.

The IEB’s investigation, detailed in a summary presented by counsel Zachary Mercer, found that Fanatics Betting and Gaming identified the mistake before the event and canceled that part of the parlay, according to Sports Betting Dime. The IEB reported the error to the commission on February 1, 2024, after which a thorough investigation was conducted.

“As outlined in the recommendation, the IEB investigated the matter, had further discussions with FBG concerning the causes of the incident, and reviewed the remedial measures taken. During the IEB’s review no additional information was uncovered that would have materially changed the nature of the noncompliance as originally presented to the commission. FBG was responsive and communicative throughout the process and is in agreement with the IEB’s recommendation,” Zachary Mercer stated.

Previous Violations Considered

Fanatics’ compliance history influenced the decision to impose a $15,000 fine. In May 2023, Fanatics was fined $10,000 for accepting a $50 wager on a prohibited college football bowl game featuring Boston College. That bet was also canceled before the game, and the customer was refunded. The previous fine was taken into account when determining the penalty for the recent violation.

This incident is not unique in Massachusetts. In July 2023, three casinos in the state were collectively fined $50,000 for similar violations involving in-state college betting regulations, according to Legal Sports Report. These infractions were attributed to technical errors.

In other developments, the MGC is reviewing a potential noncompliance issue with Caesars Sportsbook. The sportsbook allegedly did not meet the state’s knowledge-based authentication question requirements from September 1, 2023, through April 9, 2024. While some commissioners, including Nakisha Skinner, called for an adjudicatory hearing, others expressed the need for further investigation to determine if Caesars intentionally ignored the regulation or genuinely believed it was compliant. The commission directed the IEB to engage further with Caesars before deciding on a hearing.

This series of fines highlights the ongoing challenges in regulating sports betting, particularly regarding college sports. The NCAA president, Charlie Baker, is advocating for a nationwide ban on player prop wagers involving student-athletes. Meanwhile, some lawmakers are pushing for changes to state regulations. In New Jersey, a constitutional amendment was recently introduced to reverse a ban on in-state college betting, although a similar measure was soundly defeated by voters in 2021.