FanDuel Sportsbook has been fined $10,000 by the Massachusetts Gaming Commission (MGC) following a compliance slip-up that allowed wagering on in-state college teams, violating state sports betting regulations. This fine marks the second regulatory action in recent months, following sanctions against BetMGM in October.
The issue arose when FanDuel mistakenly permitted bets on Boston College during the NCAA Tournament futures market. Massachusetts law prohibits betting on in-state college teams unless they are participating in tournaments with at least four teams. The mistake occurred when an employee accidentally lifted restrictions while enabling bets for the NCAA Tournament, which included Boston College.
FanDuel self-reported the incident to the MGC, leading to a relatively minor penalty. Despite the total amount wagered being just $11 spread across three bets, the MGC emphasized the necessity of strict adherence to statutory rules. MGC commissioner Nakisha Skinner noted that mitigating circumstances meant FanDuel would not face additional sanctions for this incident.
Recommendations from the MGC’s Investigations and Enforcement Bureau (IEB) ensure penalties are proportionate to the severity of the non-compliance.
FanDuel demonstrated transparency and a commitment to addressing the compliance breach. The operator has pledged to take measures to prevent similar occurrences and reiterated its dedication to customer safety and regulatory compliance. In September, FanDuel launched “Trusted Voices: Conversations About Betting,” a resource hub for parents and educators.
Massachusetts is known for its strict sports betting regulations. In October, BetMGM faced a more serious compliance issue after taking over 15,000 prohibited prop bets on NCAA football players, totaling over $200,000. Unlike FanDuel, BetMGM’s violations were identified through an external audit.
BetMGM’s breaches also included bets on unsanctioned international competitions such as Belarusian sports leagues and Glory Kickboxing. BetMGM eventually self-reported other infractions, prompting the MGC to determine appropriate penalties for these high-profile violations.
Despite Massachusetts’ relatively recent entry into regulated gambling, the state regulator has demonstrated commendable vigilance. The FanDuel case underscores that even minor violations will receive an adequate and proportional response. As the local sports betting market matures, operators must proactively ensure compliance and maintain consumer and regulatory trust.
