- Sportsbooks in Massachusetts can’t provide prediction market sports activities contracts within the state
- DraftKings and FanDuel are launching prediction markets subsequent month
Following an analogous ruling in Nevada, gaming regulators in Massachusetts are telling their licensed sportsbooks to chorus from participating in prediction markets involving sports activities contracts.
FanDuel Predicts, a prediction market, is about to launch in December 2025. Gaming regulators in Massachusetts say such on-line wagering merchandise are prohibited by state legislation. (Picture: FanDuel)
On Thursday, the Massachusetts Gaming Fee (MGC) warned the state’s seven sportsbook operators that they can not companion with prediction markets or provide sports-related occasion contracts inside the commonwealth. The MGC letter comes after a number of licensed sportsbooks within the Bay State revealed their intentions to enter the prediction market area.
Within the occasion you provide sports-related occasion contracts in Massachusetts or direct patrons to such occasion contracts being provided in Massachusetts, the Fee might take steps as much as and together with revocation of your license. As well as, to the extent another regulator takes motion towards your license on account of your operation within the prediction market area, such motion might inform selections associated to your suitability in Massachusetts,” MGC Government Director Dean Serpa wrote.
Massachusetts sports activities betting license holders embrace Bally Guess, BetMGM, Caesars Sportsbook, DraftKings, Fanatics, FanDuel, and Penn Sports activities.
Prediction Market Crackdown
The Massachusetts gaming regulators agree with the Nevada Gaming Management Board (NGCB) that prediction markets providing occasion contracts on sports activities outcomes represent sports activities playing.
“Wagering on sporting occasions in Massachusetts is strictly ruled by M.G.L. c. 23N, which defines ‘sports activities occasion’ or ‘sporting occasion’ as ‘knowledgeable sport or athletic occasion, collegiate sport or athletic occasion, a collegiate match, motor race occasion, digital sports activities occasion, or different occasion licensed by the Fee underneath [Chapter 23N]…’ As such, wagering on sporting occasions might solely be provided on licensed sports activities wagering platforms licensed by the Fee,” Serpa defined.
The MGC discover comes solely hours after DraftKings and FanDuel exited Nevada’s sports activities betting trade to concentrate on their prediction market efforts. FanDuel’s mum or dad, Flutter Leisure, surrendered its sports activities wagering license, whereas DraftKings folded on its pursuit to enter the state.
Final month, the NGCB concluded that sports activities occasion contracts are wagers. The board, usually cited because the “gold normal” of gaming regulation, added that the majority prediction market contracts violate Nevada’s betting legal guidelines.
The Board considers providing sports activities occasion contracts, or sure different occasion contracts, as constituting wagering exercise underneath NRS 463.0193 and 463.01962. Wagering happens whether or not the contract is listed on an change regulated by the Commodity Futures Buying and selling Fee or elsewhere,” the NGCB wrote.
“Examples of occasion contracts that the Board particularly considers to be wagering topic to its jurisdiction embrace occasion contracts based mostly on the result or partial final result of any sporting or athletic occasion, or different chosen occasions such because the World Collection of Poker, the Oscars, Esports, and political elections (“Sports activities and Different Occasion Contracts”),” the discover continued.
Boston-Primarily based DraftKings
For DraftKings, the corporate that calls Massachusetts’ capital metropolis its headquarters, the MGC discover is of utmost concern. Although the state gaming company mentioned its directive concerning prediction markets solely applies to such operations inside the commonwealth, the MGC mentioned it reserves the suitable to deal with its licensees working PMs outdoors the state sooner or later.
The letters don’t converse to sports-related occasion contracts provided outdoors of Massachusetts or occasion contracts typically, although the Fee reserves the suitable to deal with these subjects sooner or later,” the MGC wrote on its web site.
DraftKings is about to debut DraftKings Predicts subsequent month. FanDuel is, too.
