October 3, 2024 3 min read

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Fact-checked by Stoyan Todorov

BetMGM Faces Increased Scrutiny in Massachusetts Over Banned College Bets

The issues involve more than 15,000 prop bets on NCAA football player performances during the 2023 season

BetMGM is under more scrutiny in Massachusetts after an audit showed more rule-breaking about banned sports bets. 

Massachusetts Probes BetMGM Over $200,000 in Prohibited NCAA Football Prop Bets

The problems first reported earlier this year, are about over 15,000 prop bets on how NCAA football players did during the 2023 season. These bets’ handle reached more than $200,000. Even though Massachusetts has strict rules that do not allow prop betting on college athletes, BetMGM took these bets. This led the Massachusetts Gaming Commission (MGC) to start an investigation.

The law in Massachusetts puts limits on betting for local college teams allowing it only when they are in tournaments with at least four teams. The rules get even tougher when it comes to prop bets on college athletes – they are not allowed at all. This rule aims to shield student-athletes from too much pressure and outside influence. 

The violations were initially uncovered during an internal audit, not self-reported by BetMGM, a deviation from standard industry practices where operators often flag their own compliance issues.

Cathy Judd-Stein Emphasizes Need to Safeguard Student-Athletes Amid BetMGM Prop Bet Violations

Cathy Judd-Stein, who chairs the MGC, stressed how important it is to protect student-athletes. She voiced her worries about the breach. She repeated that prop betting on college athletes breaks state law. So, the MGC asked the Investigations and Enforcement Bureau (IEB) to look into whether BetMGM should face consequences in a hearing.

Besides the initial rule breaches, a newer check by Gaming Laboratories International (GLI) uncovered more rule-breaking. Fresh discoveries include 41 more NCAA football player prop bets, 13 bets on college basketball player performances, and 12 wagers placed on the Women’s NCAA Elite Eight. BetMGM also took bets on unsanctioned international events, like Belarusian sports leagues and Glory Kickboxing, which are off-limits in Massachusetts.

Despite the gravity of these violations, BetMGM has cooperated with the investigation, self-reporting the additional infractions uncovered by GLI. The MGC plans to deal with all these issues in one hearing, but they have not set a date yet.

These problems come at a key time for BetMGM. It reported $7.7 million in gross gaming revenue for Q2 2024, which gave the state $1.5 million in taxes. But it fell behind its rivals. DraftKings led the market making $73.5 million in gross gaming revenue. FanDuel came in second with $56 million.The result of the court hearing will have a big impact on BetMGM‘s chances in the Massachusetts sports betting scene.

Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.

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