• The Massachusetts Gaming Commission agreed to a $10,000 fine for Fanatics Betting and Gaming
• The recommendation came from the Investigations and Enforcement Bureau
• Fanatics Sportsbook accepted an improper bet on an in-state college football team

The Massachusetts Gaming Commission agreed to a recommendation from the Investigations and Enforcement Bureau for a $10,000 fine for one if its sports betting operators.

The commission unanimously voted on a recommendation from the Investigations and Enforcement Bureau (IEB) to fine Fanatics Betting and Gaming $10,000  due to its Fanatics Sportsbook accepting a bet on an in-state college football team.

The sportsbook operator accepted the bet on Dec. 5, 2023, several weeks before the game was set to kickoff and self-reported the incident the next day.

In-State Bets on Colleges Prohibited

The Massachusetts Gaming Commission (MGC) unanimously agreed to hold the hearing with Fanatics Betting and Gaming after its Fanatics Sportsbook accepted a $50 bet on a Boston College football game against Southern Methodist University last December. The commission prohibits all sports betting on Massachusetts colleges or universities unless they’re participating in a national tournament.

Following an initial adjudicatory hearing several months ago, the MGC agreed that a “civil penalty” would likely be necessary for Fanatics Betting and Gaming. To be consistent with prior actions, the MGC agreed to have the IEB look into the incident and come back with a summary and suggested course of action at a later meeting.

The bet was placed on Dec. 5 at 2:21 p.m. A Fanatics Betting and Gaming employee determined the prohibited market was open for bets from was from Dec. 5, 11 a.m., through Dec. 6 at 5:50 a.m. It was determined that a Fanatics Betting and Gaming football trader incorrectly set the market to “on” and it was an isolated incident involving just the one employee.

The MGC has three potential options to take when dealing with these incidents. The commission can designate the IEB to investigate the incident further, it can call for an adjudicatory hearing for the incident, or it can issue a civil administrative penalty to the operator, which the operator can then appeal.

The MGC today voted 4-0 to fine Fanatics Betting and Gaming.

Fanatics Betting and Gaming has yet to announce if they’ll appeal the decision.

Sports Betting Tax Rate Being Discussed in Senate

Sen. John F. Keenan (D – Norfolk/Plymouth) proposed an amendment to the Senate’s FY 2025 Massachusetts budget that will increase the state’s online sports betting tax rate from 20% to 51%, a 155% increase.

Today, the Senate is debating the proposed amendments to the $58 billion House-approved FY 2025 budget. It has until tonight to approve any amendments to the budget. Keenan’s amendment has yet to be discussed on the floor.

Keenan’s amendment, if approved, would skyrocket Massachusetts into a first place tie with New York in as the highest taxed sports betting state in the country.

In April, the state reported approximately $49.3 million in taxable online sports wagering revenue, which resulted in $9.9 million in tax revenue for the month. If taxed at a 51% rate, this would have led to more than $25.1 million in tax revenue for the month.

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