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MA Operators Risk Losing Temporary Licenses
At the moment, according to Massachusetts’s state law, there are no limits on the number of temporary licenses that can be issued to mobile sports wagering operators in the state. As a result, the head of the Massachusetts Gaming Commission has drawn attention to the potential impacts of continuing to issue an unlimited number of these licenses.
76% of MA Mobile Operators Closing the Blinds Soon?
The warning also spoke about the fact that most of the operators in the state are expected to shut off their business in the following year. At the moment, under the same law, mobile operators are eligible for a total of seven boundless licenses that are not related to casinos or simulcasts. According to the commission’s executive director Karen Wells, around 30 operators may soon be struggling to get their hands on these licenses belonging to the untethered category 3.
Problems may arise once temporary sports betting operators are given the green light prior to a final call regarding their full licensing status. The issues are connected to financial complications that may be experienced by operators, customers, and regulators alike. Plus, there is also a higher consumer protection risk for the general public. Wells spoke about up to 76% of operators that are expected to enter the pool for temporary licensees, fail to go further in the selection process and be ultimately forced to close their blinds soon after.
$1 Million Fee down the Drain
Mobile and online sports betting operators that receive temporary licenses but are denied a full license will lose the $1 million licensing fee in the process. According to Wells, provided the Gaming Commission chooses to continue issuing these temporary licenses, they will need to set up a new set of regulations. The new rules would be aimed at the way mobile operators will be closed down when they fail to make it on the short list of fully-licensed operators.
Plus, another potential problem is connected to bettors who will want to wager on upcoming events using operators with a temporary license that will be forced to shut down prior to the beginning of the respective events.
Chair Cathy Judd-Stein added that the thought of having to send out notices to “honorably operating businesses” that failed to make the short list was something “untenable.” At the same time, commissioner Nakisha Skinner called the talks on non-permanent licenses “premature,” given the fact that regulations on sports betting and house rules have not been fully completed yet. Earlier this week, Judd-Stein also welcomed a report issued by UMass that spoke about the advantages of legalizing sports betting in the state.
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After finishing her master's in publishing and writing, Melanie began her career as an online editor for a large gaming blog and has now transitioned over towards the iGaming industry. She helps to ensure that our news pieces are written to the highest standard possible under the guidance of senior management.
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