The Massachusetts Gaming Commission is one of the strongest sports gambling regulators in the U.S., but another state agency says it’s falling short on gambling addiction.
On Thursday, State Auditor Diana DiZoglio’s Office sharply criticized the MGC after completing a four-year audit of its performance related to consumer protection.
In Gambling Harm’s view, the situation shows why the best course of action in the U.S. is to repeal online sports betting laws. Even the best gambling regulators appear to be captured by the industry.
There are many examples as to why the MGC is arguably the nation’s boldest sports gambling regulator.
In July, the MGC fined DraftKings $450,000 for accepting illegal credit card deposits. Other states, such as Michigan, have fined DraftKings as low as $5,000 for potentially deadly problem gambling-related violations.
Also in July, the MGC publicly criticized the federally regulated sports gambling platform Kalshi, which stated it had little concern for problem gambling. The month prior, Jordan Maynard, chair of the MGC, commendably called for federal oversight of online sports betting, which he labeled a “highway without speed limits.”
Maynard joined the MGC in 2022. The audit of the commission was from 2020–2023.
MA Gaming Commission Audit
The MGC oversees the state’s casino industry, including MGM Springfield, Encore Boston Harbor and Plainridge Park Casino. It also regulates the state’s 13 sports betting operators.
The Bay State is home to DraftKings’ headquarters in Boston.
“MGC failed to monitor sports betting advertisements before public release, violating state regulations,” DiZoglio’s office said in a news release.
“Seventeen advertisements lacked required responsible gambling information, including an omission of the Massachusetts Problem Gambling Helpline. These failures risk exacerbating gambling addiction and exposing youth to harmful promotional materials.”
The audit also claimed that GameSense agents, who are tasked with supporting residents experiencing problem gambling, were not properly trained as mandated.
“Without proper training, these agents are ill-equipped to help individuals struggling with gambling addiction,” the release stated. “This undermines the very support systems designed to mitigate gambling-related harm.”
MA Gaming Commission Lacked Transparency
Only during the audit did the auditor’s office learn of two class-action lawsuits that had been filed against Massachusetts casinos.
“These lawsuits are believed to have arisen from discrepancies between the Massachusetts General Laws […] and Code of Massachusetts Regulations […] regarding the monthly win/loss statements that should be sent to reward cardholders,” the press release also stated.
“Reward cardholders were not given clear and detailed monthly statements outlining their wins and losses. This means that cardholders were deprived of information that was essential for making informed decisions about their gaming habits and practicing responsible gaming. By not meeting these requirements, gaming establishments may enhance their profitability at the expense of their patrons’ well-being.”
Audit Strikes at Heart of MGC
The Massachusetts Auditor’s Office suggested gambling regulation is not working in the state.
“MGC stands to gain financially, as it receives a portion of the revenue generated by these casinos. This situation raises concerns not only about the implications of prioritizing profit over player welfare but also about the effectiveness of regulatory oversight in promoting safe gaming practices, especially when that regulatory oversight appears inconsistent with the General Laws.”
The MGC will have some time to address the audit’s findings.
“The Massachusetts Gaming Commission has a responsibility to follow the law and provide adequate oversight, especially pertaining to gambling addiction issues,” said Auditor DiZoglio. “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.”
Why Repeal Should Be Considered
The MA Gaming Commission audit can teach us something about sports betting regulation. Arguably, no state in the U.S. is equipped to regulate the online sports betting industry.
A 2024 U.S. study found that over 50% of sports betting revenue comes from the highest severity of problem gamblers. Other studies show that 4.6% to 17.8% of online bettors account for 80% of revenue.
Sports betting addiction statistics also show that over 50% of online bettors have chased losses.
Another 2024 study out of California found that residents of states with sports betting experience significantly worse financial health.
A core argument for legalizing online sports betting is that states and regulated companies should get a piece of the demand for online sports betting. In other words, part of the offshore sports betting market.
However, estimates of offshore sports gambling vary wildly. A former CEO of FanDuel recently said that the U.S. casino industry fabricates the size of the offshore market.
To make matters worse, polling shows online sports betting legalization is highly controversial. In Missouri, which will launch online sports gambling later this year, legalization was approved by fewer than 3,000 votes.
It’s not too late for states to repeal their online sports betting laws. For states without legalized sports betting, such as Minnesota, it’s best to indefinitely pause policy proposals.
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