DraftKings Seeks Full Five-Year Sports Betting License in Massachusetts

DraftKings has taken its first step toward securing a full five-year sports betting license in Massachusetts. The Massachusetts Gaming Commission (MGC) held an adjudicatory hearing lasting more than five hours, evaluating the company’s suitability and potential compliance challenges. Additional talks in February 2025 should help answer any lingering questions and allow DraftKings to proceed with its application.

The Company Must Address Some Deficiencies

Despite most of the MGC’s DraftKings hearing happening behind closed doors, the Commission has recommended the operator for a full license, pending several conditions. Some of the MGC’s stipulations require DraftKings to enhance internal controls and provide the regulator with updated fingerprints of key personnel to meet compliance standards.

This commission very much cares about cultures of compliance, and in my view, that starts with the tone at the top of the organizations.

Eileen O’Brien, MGC Commissioner

Other recommendations include bolstering long-term stability by resolving ongoing civil litigation and regulatory matters and taking steps to reduce the frequency of regulatory violations. Investigations and Enforcement Bureau (IEB) civilian investigator Michael Banks pointed out that DraftKings has committed more than 50 regulatory violations in other licensed states.

Despite these perceived deficiencies, the MGC remained optimistic regarding DraftKings’ prospects, highlighting that its standing remained satisfactory in all active jurisdictions. The regulator announced it required additional information pending an ongoing audit by consulting firm RSM US. The firm should deliver its findings within 60 days, and the report could significantly influence the MGC’s verdict.

All Parties Remain Optimistic

DraftKings has operated under a temporary one-year Category 3 Sports Wagering Operator License in Massachusetts since February 2023, launching its sportsbook operations on 10 March 2023, when it received its operations certificate. The MGC praised DraftKings for its significant role in providing legal sports betting options in the state and giving customers a fair alternative to unregulated offerings.

You provide a great service to the Commonwealth of Massachusetts, keeping people from the illegal market.

Jordan Maynard, MGC Chair 

The MGC’s scrutiny highlights its commitment to balancing stakeholder interests and consumer protection. The Commission recently introduced an official seal of approval for all licensed operators. DraftKings and other licensed companies will display this mark on their digital platforms, reassuring players that they are accessing a fully licensed operator compliant with the Commonwealth’s laws and regulations.

DraftKings’ path to a full five-year license reflects its commitment to maintaining its leadership position in Massachusetts. The MGC will hold another meeting in February to continue discussions regarding the operator’s application. By addressing the outlined conditions and cooperating with the Commission, DraftKings hopes to secure long-term operational stability while maintaining compliance and consumer protection standards.