FanDuel Faces $10,000 Fine in Massachusetts for Betting Rule Violation

FanDuel Sportsbook is on the receiving end of a $10,000 fine issued by the Massachusetts Gaming Commission (MGC) after a compliance slip-up allowed wagering on in-state college teams, a clear violation of state sports betting regulations. This fine marks the second regulatory intervention in recent months, as BetMGM also faced sanctions in October.

FanDuel Had Several Mitigating Circumstances

The issue occurred when FanDuel mistakenly allowed bets on Massachusetts-based Boston College during the NCAA Tournament futures market. State law prohibits wagering on in-state college teams unless they participate in tournaments featuring at least four teams. In this case, the mistake happened when an employee accidentally removed restrictions while allowing bets for the NCAA Tournament, which included Boston College.

FanDuel self-reported the incident to the MGC, contextualizing the relatively minor penalty. Although the total amount wagered was a mere $11 spread across three bets, the MGC emphasized the importance of strict adherence to statutory rules. MGC commissioner Nakisha Skinner commented that the substantial mitigating circumstances meant that FanDuel would not face further sanctions relating to this incident.

Any recommendation from the IEB considers the severity of the circumstances, ensuring the penalty is proportionate to the actual circumstances of the non-compliance issue.

Nakisha Skinner, MGC commissioner 

FanDuel demonstrated transparency and a willingness to address the compliance breach and will take measures to prevent similar future occurrences. The operator has repeatedly reiterated its commitment to customer safety and regulatory compliance. September saw the company launch “Trusted Voices: Conversations About Betting,” a new program and resource hub for parents and educators.

BetMGM Faced Significant Scrutiny

Massachusetts is well-known for its strict sports betting regulations. In October, BetMGM faced a more serious compliance issue when it was found to have taken more than 15,000 prohibited prop bets on NCAA football players, totaling a handle of over $200,000. Unlike FanDuel, BetMGM’s violations were not self-reported but the result of an external audit.

BetMGM’s breaches also extended to international events like bets on unsanctioned competitions such as Belarusian sports leagues and Glory Kickboxing, which are off-limits in Massachusetts. BetMGM eventually self-reported other infractions, leaving the MGC with the challenging decision of settling on a suitable penalty for such high-profile violations.

Despite Massachusetts’ relatively young age as a regulated gambling jurisdiction, the state regulator has demonstrated commendable vigilance. The FanDuel case highlights that even seemingly trivial violations will result in an adequate and proportional response. As the local sports betting market matures, operators must proactively ensure compliance and maintain consumer and regulatory trust.